Source: Digital Ally, Inc.

Digital Ally Awarded Statewide Contract Extension With State of Michigan

State Police Authorized to Purchase In-Car Video, Body-Worn Cameras and Patented VuLink Automatic Activation Systems

LENEXA, KS--(Marketwired - Aug 17, 2015) - Digital Ally, Inc. (NASDAQ: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced an extension of its statewide contract with the State of Michigan. The Contract was extended for one year, or until December 7, 2016, and approved the purchase of many of the Company's products, including the DVM-800 In-Car Video System, FirstVU HD body-worn camera and VuLink hands-free automatic activation system by the Michigan State Police.

The Company has supplied the Michigan State Police with its DVM-800 and DVM-500Plus In-Car Video Systems for the past five years, and the one-year extension will increase the cumulative contract value since its inception to approximately $7.3 million. In addition, the statewide contract allows state, county and municipal law enforcement agencies within Michigan to purchase Digital Ally in-car video systems, body-worn cameras and VuLink automatic activation systems at the same prices and under the same terms as were negotiated with the state police. Michigan is one of the highest-ranking states in terms of total revenues generated for the Company, primarily as a result of these contracts with the Michigan State Police.

"On August 13, 2015, we received a purchase order valued at approximately $350,000 under this Contract from the Michigan State Police," commented Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "The order included DVM-800 in-car video systems and a FirstVU HD docking station. The Company expects to ship this order in the current quarter."

"We have an excellent and long-standing relationship with the State of Michigan and are very pleased with the one-year extension of the statewide in-car video system contract and the expansion of the contract to include our FirstVU HD body-worn cameras and VuLink automatic activation systems for the first time," added Ross. "While we may benefit from certain orders under these contracts during the third and fourth quarters of 2015, the extension provides us with a contract vehicle to pursue sales opportunities for our full suite of products with law enforcement agencies throughout the State of Michigan over the next year."

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: the Company's ability to obtain additional orders from law enforcement agencies in the State of Michigan, including for the DVM-800, FirstVU HD and VULink; whether the federal economic stimulus funding for law enforcement agencies will have a positive impact on the Company's revenue; the Company's ability to deliver its new product offerings, including the FirstVU HD, DVM-800 and VuLink, as scheduled, obtain the required components and products on a timely basis, and have them perform as planned; its ability to maintain or expand its share of the markets in which it competes, including those outside the law enforcement industry; whether the interest shown in the Company's newer products will translate into sales of such products; whether the Company will be able to adapt its technology to new and different uses, including being able to introduce new products; 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, 2014 and quarterly report on Form 10-Q for the three and six months ended June 30, 2015, as filed with the Securities and Exchange Commission.

Contact Information:

For Additional Information, Please Contact
Stanton E. Ross
CEO
(913) 814-7774

or

RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893
Email: info@rjfalkner.com