Patent Office Rejects Taser's Attempt to Invalidate Digital

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Patent Office Rejects Taser's Attempt to Invalidate Digital Ally's '292 Patent Directed to Law Enforcement Camera Auto-Activation

LENEXA, KS--(Marketwired - Dec 10, 2015) - Digital Ally, Inc. ( NASDAQ : DGLY ) ("the Company") today announced that the United States Patent and Trademark Office ("USPTO") has issued a Notice of Intent to Issue a Reexam Certificate for the Company's U.S. Patent No. 8,781,292 ("the '292 Patent"), rejecting a challenge to the '292 Patent's validity filed by Taser International, Inc. ("Taser"). The '292 Patent is a pioneering invention generally directed to a system that automatically activates and coordinates recording of an event from multiple camera vantage points, such as from law enforcement officers' body cameras and in-car video recorders.

In April 2015, Taser filed a Request for Ex Parte Reexamination of the '292 Patent with the USPTO. Taser submitted arguments in support of its position, and a reexamination proceeding was initiated on May 19, 2015. This proceeding resulted in the USPTO rejecting Taser's challenge and ultimately determined that all original 20 claims of the '292 Patent, as amended, are valid and patentable over Taser's submitted prior art and additional prior art proactively submitted by Digital Ally. Additionally, Digital Ally added 39 claims during the reexamination, and these new claims were also confirmed patentable. The '292 Patent will now have 59 claims covering various aspects of the Company's innovative VuLink system. Across these 59 valid patent claims, the '292 Patent broadly protects coordinating and automatically activating multiple law enforcement cameras through a wide variety of triggering events, such as manual officer activation or activating a vehicle's siren, signal lights, or spotlights, among others.

"Digital Ally is pleased that the Patent Office has confirmed that our groundbreaking technology is valid over Taser's challenge," stated Stanton Ross, CEO of Digital Ally. "When the body-worn camera industry was in its infancy, Digital Ally recognized a severe limitation posed by the then-existing requirement that officers manually activate their cameras. This was particularly distracting and undesirable for officers responding to emergency and/or dangerous situations, and Digital Ally sought to remedy this problem with a system providing flexible options for automatic camera activation as well as coordination between multiple cameras on the scene." 

"The '292 Patent, as well as other patents and pending patent applications in Digital Ally's portfolio, capture the effort we have invested to make these systems work better in order to keep our communities and officers safe," concluded Ross. 

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 several aspects of its disclosed technology in the '292 Patent will ultimately be found patentable by the USPTO and if so the extent to which the '292 Patent will give the Company effective, enforceable protection of the intellectual property contained in its products in the marketplace; competition from larger, more established companies with far greater economic and human resources; 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, 2014 and quarterly report on Form 10-Q for the three and nine months ended September 30, 2015, as filed with the Securities and Exchange Commission.

For Additional Information Please Contact: Stanton E. Ross CEO (913) 814-7774 or RJ Falkner & Company, Inc. Investor Relations Counsel (800) 377-9893

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