Digital Ally Once Again Defeats Axon's Attempt to Invalidate Digital's '452 Patent

LENEXA, KS--(Marketwired - Aug 3, 2017) - Digital Ally, Inc. (NASDAQ: DGLY) ("Digital" or the "Company"), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announces yet another significant victory in its legal battles against Axon Enterprise, Inc. ("Axon," formerly known as TASER International, Inc.).

Digital Ally is pleased to announce another significant victory in protecting its patents from infringement by Axon. Axon's final attempt to invalidate the claims of Digital Ally's '452 Patent in front of the U.S. Patent Office failed today with the Patent Office's decision to decline to institute an IPR. As previously reported, Axon filed two inter partes reviews (IPR) against Digital Ally's '452 Patent. On July 6, 2017, the U.S. Patent Office denied institution of Axon's first IPR on the '452 Patent, finding that Axon had not established even a reasonable likelihood that the challenged claims would be found unpatentable after completion of an IPR trial. Today, the U.S. Patent Office issued a decision denying institution of Axon's second IPR on the '452 Patent. This brings an end to Axon's attempts to invalidate the '452 Patent at the U.S. Patent Office. Although this last IPR filed by Axon attempted to invalidate claims that are not currently asserted against Axon in the pending litigation, Axon has now twice unsuccessfully attempted to invalidate claims in the '452 Patent. Axon is now statutorily barred from filing any further IPRs against the '452 Patent, as well as against the '292 Patent.

In the four total IPRs that Axon filed against Digital Ally's '292 and '452 Patents, Axon has lost on three of the IPRs. The result of the fourth IPR, which only challenges certain claims of the '292 Patent, has yet to be decided by the Patent Office, with a decision expected to be rendered approximately in the first quarter of 2018. For the fourth and only remaining IPR, Digital Ally is vigorously defending Axon's claims of unpatentability and is looking forward to confirming the uniqueness of its innovation.

About Digital Ally, Inc.

Digital Ally is a leading global designer, manufacturer and innovator in the growing field of digital technology. Digital Ally is the only company serving the military, law enforcement, fire, emergency medical services and the commercial fleet industries that is capable of providing the complete end-to-end hardware and software solution. The Company's product lines include in-car audio/video recording equipment, body-worn cameras, cloud and local server software and storage solutions. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide. Digital Ally is headquartered in Lenexa, Kansas. For news and information please visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc.

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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 ultimate outcome of the patent infringement litigation between the Company and Axon; whether Axon will seek to have the Patent Office reconsider its IPR decision and whether the Patent Office will do so; competition from larger, more established companies with far greater economic and human resources; the effect of changing economic conditions; and changes in government regulations 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, 2016 and Form 10-Q for the three months ended March 30, 2017, as filed with the Securities and Exchange Commission.