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Digital Ally, Inc. Expects
2007 Sales to Exceed $19 Million

Digital Ally, Inc. Press Release - 12/12/2007

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Company retains new transfer agent to be eligible for NASDAQ Capital Market listing

Digital Video Flashlight from Digital Ally

Digital Video Flashlight from Digital Ally

OVERLAND PARK, 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 announced that it has received a second installment payment in the amount of $1.9 million for DVM-500 In-Car Video Systems purchased by an international law enforcement agency in accordance with a $5.1 million order that was announced on November 29, 2007. Unit shipments commenced upon receipt of an initial installment payment in late November, and the entire order should be delivered to the customer during the fourth quarter of 2007 and the first quarter of 2008.

"I am pleased to report that our sales during the current quarter, to date, exceed $5.8 million, surpassing the Company's previous quarterly record of $5.1 million in the three months ended September 30, 2007," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "This will be our seventh consecutive quarter of record sales and should allow revenues for the full year to reach or exceed $19 million, compared with revenues of $4.1 million in 2006."

The Company also announced that it has retained First American Stock Transfer, Inc. as its new transfer agent and amended its Bylaws to permit it to participate in a Direct Registration Program for its common stock. The Company took these steps to meet certain requirements for the listing of its common stock on The NASDAQ Capital Market. Digital Ally, Inc. announced its application for a NASDAQ Capital Market listing on November 15, 2007, which application is pending.

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 the field of Digital Video Imaging and Storage.

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