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Digital Ally Anticipates 150% Increase
in 1st Qtr. Revenue

Digital Ally, Inc. Press Release - 4/15/2008

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Manufacturer of Digital Video Flashlight says quarterly revenue to exceed $8.6 million

Digital Video Flashlight from Digital Ally

Digital Video Flashlight from Digital Ally

OVERLAND PARK, Ks. - Digital Ally, Inc. (Nasdaq: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that it expects to report that revenue for the three months ended March 31, 2008 increased approximately 150% to over $8.6 million when compared with revenue of approximately $3.4 million in the first quarter of the previous year. This represents an increase of approximately 17% over fourth quarter 2007 revenue of approximately $7.3 million and will be the eighth consecutive increase in quarterly revenue since Digital Ally commenced shipping its advanced digital surveillance products to customers in March 2006.

“We sold a record number of DVM-500 In-Car Video Mirror systems to law enforcement agencies during the first quarter of 2008, and almost two-thirds of these sales represented reorders from existing customers,” stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. “Our largest shipment during the quarter involved a reorder for 265 additional DVM-500’s from an international customer that placed its first order with Digital Ally in the second half of 2007. Our customer base now includes over 1,700 law enforcement agencies in all 50 states and 12 foreign countries.”

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“Based upon information currently available, we expect to report record operating income for the quarter ended March 31, 2008, as well,” continued Ross. “We also remain comfortable with our previous guidance that 2008 full-year revenue should approximate $40 million, compared with $19.4 million in 2007.”

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 involves Digital Video Imaging and Storage. For additional information, visit

The Company is headquartered in Overland Park, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol “DGLY”.