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Digital Ally Second Quarter Revenue
to Approximate $7 Million

Video surveillance products maker reports sales of almost 100 Digital Video Flashlight (DVF-500) units

Digital Ally, Inc. Press Release - 7/16/2009

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Digital Video Flashlight (DVF-500)

Digital Video Flashlight (DVF-500)

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 revenues of approximately $7 million for the quarter ended June 30, 2009.

"Shipments of our new DVM-750 advanced in-car video system were responsible for over 40% of our sales in the most recent quarter," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "The advanced features available on the DVM-750 have allowed us to pursue market opportunities, particularly among larger metropolitan police departments, that were previously unavailable to us. We also shipped most of the DVM-500 units that we had in inventory during the quarter, along with a record number of DVM-500 Plus systems. Sales during the three months ended June 30, 2009 included more than 1,000 of the DVM-500 series (DVM-500 and DVM-500 Plus), over 700 DVM-750 systems, and almost 100 Digital Video Flashlight (DVF-500) units."

"Our second quarter sales of approximately $7 million represent an improvement of almost 60% when compared with first quarter sales of approximately $4.4 million," continued Ross. "Furthermore, we ended the most recent quarter with an order backlog totaling more than $800,000. Excluding potential one-time charges related to employee severance and related costs, we believe the Company should return to profitability in the April-June quarter, as anticipated. We have been very pleased with customer response to the DVM-750 and expect this series of in-car video systems to generate an even higher portion of our total sales in the second half of 2009."

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 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".

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