Digital Ally Receives Body Camera Order From California

LENEXA, KS--(Marketwired - Oct 27, 2014) - Digital Ally, Inc. ( NASDAQ : DGLY ), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced that it has received an order from a municipal police department in the San Francisco Bay Area for 110 FirstVU HD body-worn camera systems. The order includes the Company's patented VuLink Connectivity Devices and 9 FirstVU HD docking stations, each of which will facilitate the simultaneous transmission of video from up to 12 FirstVU HD systems to Digital Ally's new VuVault.NET cloud storage solution. The 9 docking stations will allow up to 108 FirstVU HDs to upload audio and video simultaneously to the cloud while the batteries are being charged. The total value of the order exceeds $300,000, and the hardware is expected to be delivered in the current quarter.

"This order is particularly notable because it represents our first significant sale involving the VuVault.NET cloud solution for evidence management and video storage," commented Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "The order includes a five-year license for VuVault.NET that will generate recurring revenue for Digital Ally."

VuVault.NET is powered by Microsoft Azure , which provides redundant and security-enhanced storage of all uploaded videos. The VuVault.NET solution has been in development for approximately one year and has recently been released for delivery to customers. Designed to compete directly with EVIDENCE.com™, VuVault.NET targets law enforcement agencies that wish to store the video generated from their body-worn and in-car video systems in the cloud rather than on local servers. 

"VuVault.NET provides our customers with the option of using cloud storage or local server storage, depending on the configuration of their IT infrastructure," continued Ross. "We will continue to provide local storage with our basic VuVault searchable and archiving back-office software. The ability to meet our customers' video storage and management needs, whether in the cloud or on local servers, is very important given budgetary constraints facing many agencies and the growing demand for video evidence whenever law enforcement officers interface with the public."

"Recent events in Ferguson, Missouri have heightened our customers' concerns that the interests of officers and the public be protected by using body-worn and in-car digital video solutions to provide evidence of what actually happened during events involving law enforcement officers and the public. We have seen a dramatic increase in the number of law enforcement agencies that are testing and evaluating our equipment since the Ferguson incident. At the current time, approximately 1,025 FirstVU HD systems are being tested and evaluated by over 635 law enforcement agencies."

Digital Ally understands the increasing demands by its customers for modular video systems that allow agencies to select from various alternatives compatible with their specific needs. The Company has developed customizable options for customers utilizing its video solutions, including interchangeable camera heads that provide for point-of-view "bullet" mounting (on glasses, hats, lapels, etc.), helmet mounting (for SWAT teams, riot and motorcycle police), and its basic mounting system that attaches to an officer's shirt or front pocket.  VuVault and the new VuVault.NET both offer a complete evidence management solution that allows customers to decide whether to store their video in the cloud or on local servers, and to switch back and forth should they so choose. Digital Ally's patented VuLink connectivity device allows customers the ability to integrate and synchronize FirstVU HD and in-car video systems by turning on both systems upon the occurrence of certain "triggering events" (e.g., the activation of emergency lights on a police cruiser), thereby eliminating the need for officers to manually start the recording devices.

"As law enforcement agencies become more familiar with the benefits of body-worn cameras and demand more versatile features and system flexibility, Digital Ally will respond by developing additional features and options that increase the appeal of its digital video solutions," concluded Ross.

A full-scale market launch of VuVault.NET is highlighted at the 2014 IACP Conference, which is currently underway in Orlando, Florida. 

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 www.digitalallyinc.com .

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 2014 given the current economic and competitive environment; the Company's ability to deliver its new product offerings, including the FirstVU HD, DVM-800, VuLink and VuVault.NET as scheduled, obtain the required components and products on a timely basis, and have them perform as planned; its ability to obtain additional orders from the California Police Department and other law enforcement agencies; whether the interest shown in the Company's newer products, including the FirstVU HD, will translate into sales of such products; whether the FirstVU HD, VuLink and DVM-800 will continue to generate an increasing portion of its total sales; 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, 2013 and quarterly report on Form 10-Q for the three and six months ended June 30, 2014, as filed with the Securities and Exchange Commission.