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Digital Ally Announces Updates for the End of 2008 and Beginning of 2009

OVERLAND PARK, Kan.—Digital Ally, Inc., which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today provided updates regarding some of the other new products that were introduced at the 115th Annual International Association of Chiefs of Police Conference and Exposition in October 2008.

The Company has already received over $1 million in orders (domestic + international) for its new DVM-750 In-Car Video System Integrated Into A Rear View Mirror, and initial shipments to customers should be underway prior to the end of this month. The DVM-750, which is an upgrade to the DVM-500, includes the ability to connect up to three cameras, with two-camera simultaneous recording capabilities; an ultra-bright display (1000 Nits); an electronic locking door with key code access; D1 high-resolution video (720x480) utilizing the latest h.264 recording codec; and the new VoiceVault(TM) advanced wireless microphone with a transmission range of up to one mile and on-board memory that can record audio evidence when the officer is beyond the range of the in-car recording device.

Initial orders have also been received for the FirstVu™ Professional Wearable Digital Video/Audio Recording System, and the Company expects production and customer shipments to commence in the second quarter of 2009. FirstVu(TM) can be attached to a law enforcement officer's uniform and is designed to capture evidence of criminal activity on a "real-time" basis. It has many of the features of the DVM series of In-Car Video Systems, without being "tethered" to the police cruiser or other vehicle. Key features include easy-to-use four-button operation with vibrating notifications, infrared illumination for operation at night or in low-light conditions, a lithium polymer battery for up to five hours of continuous operation, pre-event recording capabilities, high-resolution video that records to reliable solid state memory, an integrated GPS with "mark" feature to record precise locations, and both LED and covert modes of activation.

Production of the DVM-250 Pro Event Recorder is also scheduled to commence in the second quarter of 2009. The DVM-250 Pro is designed to record both audio and video of the circumstances surrounding an "event" that occurs while occupying or operating a motor vehicle. It can also record events that occur when the vehicle is unattended and can be triggered manually by pushing a record button mounted on the rearview mirror, by a covert foot switch, or automatically through various sensors or conditions (e.g., sudden acceleration or deceleration in the speed of the vehicle). The DVM-250 Pro has been developed for the transportation and fleet operator markets, including school buses, taxi cabs, limousines, motor coaches, utility vehicles, package delivery trucks, telecommunications vehicles, and even consumer vehicles.

"As we approach the end of 2008, which will be another record year for Digital Ally, we have continued to receive orders for immediate shipment, including a $650,000 order for DVM-500 systems from the Jackson, Mississippi Police Department, and a DVM-500 reorder from an international customer totaling more than $500,000," continued Ross. "We believe 2009 will be an exciting year, as the Company significantly expands its 'addressable market' through the broadening of its law enforcement products portfolio and entry into the mass transportation and commercial fleet operator markets."

Finally, the Company announced that the "strategic alternatives" process that was announced in November is proceeding apace and, based upon currently available information, a resolution of the process is anticipated in the first quarter of 2009. As previously announced, Digital Ally has retained Banc of America Securities LLC as its financial advisor in connection with the Company's consideration of a range of strategic alternatives designed to enhance shareholder value.

About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial security applications. The Company's primary focus is Digital Video Imaging and Storage. For additional information, visit www.digitalallyinc.com.

The Company is headquartered in Overland Park, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY".

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