Digital Ally Awarded Statewide Contract Extension With Michigan

Digital Ally Awarded Statewide Contract Extension With Michigan 
State Police Authorized to Purchase In-Car Video and LIDAR Systems 
LENEXA, KS -- (Marketwired) -- 12/03/13 --  Digital Ally, Inc.
(NASDAQ: DGLY), which develops, manufactures and markets advanced
video surveillance products for law enforcement, homeland security
and commercial applications, today announced a one-year extension of
its statewide contract with the State of Michigan. The Michigan State
Administrative Board has approved appropriations for the expenditure
of up to $1 million for the purchase of the Company's DVM-500Plus
In-Car Video Systems and approximately $250,000 for the purchase of
the Company's LIDAR speed measurement systems by the Michigan State
The Company has supplied the Michigan State Police with its
DVM-500Plus In-Car Video Systems for the past three years, and the
one-year extension just awarded will increase the total contract
value to approximately $4.5 million. The LIDAR speed measurement
contract covers an initial three-year period. In addition, these
statewide contracts allow state, county and municipal law enforcement
agencies within Michigan to purchase Digital Ally in-car video
systems and LIDAR speed measurement systems at the same prices and
under the same terms as were negotiated with the state police.
Michigan has emerged as one of the top two or three highest ranking
states in terms of total revenues generated for the Company,
primarily as a result of these contracts with the Michigan State
"We have an excellent and long-standing relationship with the
Michigan State Police and are very pleased to be awarded this
one-year extension of our statewide in-car video system contract and
the new three-year LIDAR contract," noted Stanton E. Ross, Chief
Executive Officer of Digital Ally, Inc. "While we may benefit from
certain orders under these contracts during the fourth quarter of
2013, the contracts will allow us to pursue sales opportunities with
law enforcement agencies throughout Michigan over the next twelve
About Digital Ally, Inc. 
Digital Ally, Inc. develops, manufactures and markets advanced
technology products for law enforcement, homeland security and
commercial applications. The Company's primary focus is digital video
imaging and storage. For additional information, visit 
The Company is headquartered in Lenexa, Kansas, and its shares are
traded on The Nasdaq Capital Market under the symbol "DGLY". 
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: whether the Company will be able
to improve its revenues and operating results in 2013 given the
current economic environment; the Company's ability to deliver its
newer product offerings as scheduled and have them perform as
anticipated; its ability to obtain additional orders from law
enforcement agencies in the State of Michigan; whether the Company
can obtain its components and products on a timely basis; its ability
to maintain or expand its share of the markets in which it competes,
including those outside the law enforcement industry; competition
from larger, more established companies with far greater economic and
human resources; its ability to attract and retain customers and
quality employees; the effect of changing economic conditions; and
changes in government regulations, tax rates 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, 2012 and
quarterly report on Form 10-Q for the three and nine months ended
September 30, 2013, as filed with the Securities and Exchange
For Additional Information, Please Contact: 
Stanton E. Ross
(913) 814-7774 
RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893 
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