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Digital Ally, Inc. Press Release - 10/04/2007

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Digital video flashlight maker reports strong re-order rates and anticipates record sales

Digital Ally's VF-2 Video Flashlight

Digital Ally's VF-2 Video Flashlight

LEAWOOD, Ks. - Digital Ally, Inc. (OTC Bulletin Board: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today provided a review of some of the more notable orders that were received by the Company during its third quarter, which ended September 30, 2007.

As previously announced, in July the Company was awarded a statewide contract from the State of Mississippi for its DVM-500 Digital In-Car Video Systems Integrated into a Rearview Mirror. The contract was for a period of twelve (12) months, with the option to renew for four (4) additional twelve- month periods. Immediately following the award, the Mississippi Department of Public Safety placed an order for over 300 DVM-500 systems, to be installed in law enforcement vehicles throughout the State as a replacement for the agency's old VHS in-car video systems. Year-to-date, Digital Ally, Inc. has received statewide contracts from five states -- Mississippi, West Virginia, Arkansas, New Mexico and Wisconsin.

Towards the end of the third quarter, the Company received its largest order, to date, from a Canadian agency. The Province of Alberta Commercial Vehicle Enforcement Division has placed an initial order for 56 DVM-500 units. The Commercial Vehicle Enforcement Division is responsible for oversight of commercial trucking compliance with regulations throughout the Province of Alberta, Canada.

Re-orders also played a significant role in the Company's growth during the most recent quarter. The Arkansas State Police, after placing an initial order for 70 DVM-500 units in the second quarter of 2007, followed up with an order for an additional 24 DVM-500's in the third quarter. The West Virginia State Police ordered an additional 50 DVM-500 units in the third quarter, after an initial order of 124 units in the second quarter of 2007.

Among numerous initial orders received from new customers during the quarter ended September 30, 2007, the Company noted a contract from the Jefferson County Sheriff's Department in Birmingham, Alabama, for the purchase of 75 DVM-500 units.

"We expect to report record sales for the third quarter, continuing a trend of sequentially higher quarterly sales that has been evident since the Company began shipping its advanced digital surveillance systems to law enforcement agencies in March 2006," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "I am particularly pleased with the number of customers that have placed re-orders for the DVM-500, indicating a high level of satisfaction with the performance of our in-car video systems, which are integrated into the rearview mirrors of police and other law enforcement vehicles."

For more information on the DVM-500, contact Digital Ally, Inc. at (800) 440-4947 or via email at

About Digital Ally, Inc.

Digital Ally, Inc. is involved in the development, manufacturing and marketing of advanced technology products for law enforcement, homeland security and commercial security applications. The Company's primary development focus involves the field of Digital Video Imaging and Storage. For additional information, visit

The Company is headquartered in Leawood, Kansas, and its shares are traded on the OTC Bulletin Board under the symbol "DGLY".

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