Digital Ally Remains Committed to Holding TASER Accountable for Infringing Digital Ally's Patented Technology

LENEXA, KS--(Marketwired - Jan 17, 2017) - Digital Ally, Inc. (NASDAQ: DGLY) (the "Company" or "Digital"), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, was disappointed to learn that the U.S. District Court for the District of Kansas dismissed its allegations that TASER International, Inc. has improperly secured contracts with police precincts nationwide in violation of antitrust and unfair competition statutes. TASER's conduct has been well documented (http://www.koat.com/article/apd-taser-deal-to-be-investigated-again/5069855), and it is unfortunate that the Court will not allow Digital to address this conduct in its lawsuit. The Company believes that conduct of this type, along with no-bid contracts, ultimately harms taxpayers by preventing police precincts from making fully considered decisions regarding their chosen technology. Digital is assessing its options regarding the appeal of the dismissed claims.

The Court's order, however, has no impact on balance of Digital's claims in the lawsuit that TASER is infringing Digital's patents directed to an ecosystem for automatically activating law enforcement recording devices. Digital's pioneering inventions ensure law enforcement recording devices are on and capturing all pertinent evidence when officers respond to emergency situations, even when officers forget to activate the cameras themselves. Precincts across the country have recognized the ground-breaking nature of these patents and are demanding this technology. Digital believes that TASER has grown its own market share on the back of Digital's innovations because it was unable to develop its own solution. Digital will continue to aggressively pursue its claims that TASER has willfully infringed its patents.

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. The Company is headquartered in Lenexa, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY." For additional news and information please visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc.

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: the ultimate outcome of the Company's litigation against TASER International, Inc.; 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, 2015 and quarterly report on Form 10-Q for the three and nine months ended September 30, 2016, as filed with the Securities and Exchange Commission.