Digital Ally Receives First Large International Order for In-Car Video Systems

Management Envisions Significant Global Market Potential for Company's Advanced Digital Video Surveillance Products

LEAWOOD, Kan., July 31 -- Digital Ally, Inc. (BULLETIN BOARD: DGLY) , which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that it has received its largest international order, to date -- a contract for the purchase of 50 DVM-500 Digital In-Car Video Systems Integrated into a Rearview Mirror from the Police Department of the State of Queretaro in Central Mexico. Working with its International Sales Agent for Mexico, Digital Ally was able to secure this order during the second quarter of 2007. The DVM-500 units have been delivered and are currently being installed in State Police vehicles in Queretaro.

"We are very pleased to announce this order from our neighbors in Mexico, a country that we believe has significant potential for additional business in the future," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "This represents our largest order, to date, from a customer outside the USA, and it illustrates the appeal of our DVM-500 within the international law enforcement community."

"A key advantage of the DVM-500 involves the fact that it can be easily installed in any vehicle, whether a police cruiser in the United States or any of the makes and models of vehicles used by law enforcement agencies throughout the world. The DVM-500 simply replaces the factory-installed rearview mirror. Installation is simple and fast. Our competitors' units are limited to certain types of vehicles, and this possibly eliminates them from consideration in certain countries where police vehicles are much smaller and have no room for video storage devices in the trunk, dash, or console."

"The DVM-500's solid state design, which eliminates all moving parts, represents another important competitive advantage when targeting international markets," continued Ross. "Extreme temperatures, such as the heat in Mexico or the cold in Canada or Eastern Europe, do not degrade the performance of the DVM-500 in the least. In fact, one Canadian police agency has reported utilizing the DVM-500 at a temperature of minus 36 degrees Fahrenheit with no ill effects."

"As we continue to expand our sales and marketing activities and our product line, we believe the international market will represent a growing percentage of our future sales," concluded Ross.

For more information on the DVM-500, contact Digital Ally, Inc. at (800) 440-4947 or via email at sales@digitalallyinc.com

About Digital Ally, Inc.

Digital Ally, Inc. is involved in the development, manufacturing and marketing of advanced technology products for law enforcement, homeland security and commercial security applications. The Company's primary development focus involves the field of Digital Video Imaging and Storage. For additional information, visit www.digitalallyinc.com

The Company is headquartered in Leawood, Kansas, and its shares are traded on the OTC Bulletin Board under the symbol "DGLY".