Digital Ally Awarded Three State Contracts to Supply In-Car Video System to Law Enforcement Agencies

Arkansas, Wisconsin and New Mexico Join West Virginia in Statewide Purchase Authorizations for DVM-500 Digital In-Car Video System Integrated Into Rearview Mirror

LEAWOOD, Kan., July 30, 2007 -- Digital Ally, Inc., which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that three additional states have awarded contracts that allow all state, county and municipal law enforcement agencies to purchase Digital Ally's DVM-500 Digital In-Car Video System Integrated into a Rearview Mirror at prices negotiated with the Company. These contracts were received during the second quarter of 2007 and, when added to the West Virginia statewide contract announced during the first quarter, they bring to four the number of statewide contracts signed during the first half of 2007.

The Arkansas State Police, after a thorough evaluation period, awarded a one-year contract, with renewal options, and placed an initial order for 70 DVM-500 systems. The systems have been delivered, and a training session has been conducted for State Police Instructors. Additional systems are expected to be ordered later this year.

The Wisconsin Department of Transportation has awarded a statewide contract to Digital Ally, Inc. for the DVM-500. This contract allows all state, county and municipal government agencies to purchase the DVM-500 for a period of one year, with renewal options. The Wisconsin State Patrol placed an initial order for 50 DVM-500 systems, which are currently being installed in vehicles throughout the State. Orders are expected from a number of cities and counties as notification of the contract is received by other agencies.

The New Mexico General Services Department has awarded a Price Agreement to Digital Ally, Inc. for the DVM-500, which allows all New Mexico agencies, commissions, institutions, political subdivisions and local public bodies to purchase the DVM-500 system under the same terms and prices. Notification is being sent to all agencies informing them of this Price Agreement.

"These three new statewide contracts, and the earlier one awarded to us from West Virginia, verify the continued acceptance of the DVM-500 by law enforcement agencies of all sizes," observed Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "Our concept of integrating state-of-the-art digital video technology into a rearview mirror, thereby minimizing the space required within a law enforcement vehicle, has been enthusiastically received in the marketplace. Police cars are full of other equipment in both the trunk and the driver/passenger compartment. Thus, when officers see a complete digital video system integrated into a rearview mirror, their response has been universally positive."