LENEXA, KS--(Marketwired - Dec 3, 2013) - Digital Ally, Inc. (NASDAQ: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced a one-year extension of its statewide contract with the State of Michigan. The Michigan State Administrative Board has approved appropriations for the expenditure of up to $1 million for the purchase of the Company's DVM-500Plus In-Car Video Systems and approximately $250,000 for the purchase of the Company's LIDAR speed measurement systems by the Michigan State Police.

The Company has supplied the Michigan State Police with its DVM-500Plus In-Car Video Systems for the past three years, and the one-year extension just awarded will increase the total contract value to approximately $4.5 million. The LIDAR speed measurement contract covers an initial three-year period. In addition, these statewide contracts allow state, county and municipal law enforcement agencies within Michigan to purchase Digital Ally in-car video systems and LIDAR speed measurement systems at the same prices and under the same terms as were negotiated with the state police. Michigan has emerged as one of the top two or three highest ranking states in terms of total revenues generated for the Company, primarily as a result of these contracts with the Michigan State Police.

"We have an excellent and long-standing relationship with the Michigan State Police and are very pleased to be awarded this one-year extension of our statewide in-car video system contract and the new three-year LIDAR contract," noted Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "While we may benefit from certain orders under these contracts during the fourth quarter of 2013, the contracts will allow us to pursue sales opportunities with law enforcement agencies throughout Michigan over the next twelve months."

About Digital Ally, Inc.

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

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

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: whether the Company will be able to improve its revenues and operating results in 2013 given the current economic environment; the Company's ability to deliver its newer product offerings as scheduled and have them perform as anticipated; its ability to obtain additional orders from law enforcement agencies in the State of Michigan; whether the Company can obtain its components and products on a timely basis; its ability to maintain or expand its share of the markets in which it competes, including those outside the law enforcement industry; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; the effect of changing economic conditions; and changes in government regulations, tax rates and similar matters. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2012 and quarterly report on Form 10-Q for the three and nine months ended September 30, 2013, as filed with the Securities and Exchange Commission.