Digital Ally Receives DVM-750 Order From Major Federal Government Agency in Mexico, Company Also Receives Initial Order From Mexican Navy; Update on 2010 Guidance –



Source: Digital Ally, Inc., marketwire

OVERLAND PARK, KS–(Marketwire – October 29, 2010) – Digital Ally, Inc. (NASDAQ: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that its sales representative has received an initial order for 64DVM-750 In-Car Digital Video Systems from one of the largest federal government agencies in Mexico. The identity of the federal government agency, which represents a new customer for Digital Ally, was not disclosed because of a signed confidentiality agreement with the agency.


The order, which is part of a collaborative project with Iveda Solutions (OTCBB: IVDA), will be fully shipped to the customer prior to the end of 2010. The agency’s vehicles will be equipped with Digital Ally’s DVM-750 in-car video systems and Iveda Solutions’ streaming video converter, thereby allowing the delivery of two simultaneous “live” video streams to the agency’s headquarters or other remote locations. The pilot deployment involves up to 164 vehicles and may ultimately include many of the agency’s fleet of over 8,000 service vehicles.


“We look forward to working with Iveda Solutions to deliver the best in-vehicle mobile streaming video solution for this new customer,” noted Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. “We believe that our DVM-750 is the ideal in-car video system for the agency’s requirements, and Iveda Solutions’ centralized video hosting capabilities will allow the agency to more effectively respond to developments in the field in a timely manner, while preserving forensic evidence in accordance with chain-of-custody procedures.”


“We are excited to be working with an industry leader like Digital Ally,” added David Ly, President and Chief Executive Officer of Iveda Solutions. “Law enforcement agencies all over the world face similar issues. Tools such as Digital Ally’s in-vehicle surveillance systems and Iveda Solutions’ hosted video technology allow governments to ensure the safety of their officers and other field personnel, while recording events that can prove invaluable in legal disputes and court proceedings.”


“Digital Ally also announced receipt of four separate pilot orders from Secretaria de Marina Armanda de Mexico, which is equivalent to the country’s department of the Navy. An elite branch of the Mexican armed forces, the Secretaria de Marina participates in many sea and land activities, including operations that involve the fight against drug cartels in that country. The orders are for DVM-750 systems with ‘live’ streaming video capabilities that are coupled with Thermal Imaging, High-Powered Zoom Cameras which can be mounted on vehicles. These initial orders are for ‘proof of concept’ and will hopefully be followed by a larger order in the next government budget year,” observed Ross.


“Digital Ally continues to add new customers throughout Mexico as agency after agency recognize the ability of the DVM-750 to produce high-quality video and audio recordings in some of the most rugged countryside in all kinds of weather extremes,” concluded Ross.
The Company also announced that it has continued to experience delays in the receipt of payment for an order for 700 DVM-750 units from a South American country. This order was received in April 2010. Since that time, while the customer has provided the Company with a number of assurances of payment, it has also cited various factors, including delayed funding and political/social unrest, for its inability to make the payment. Under Digital Ally’s policy, the Company must receive payment before the shipment of such an order. The Company is still hopeful that this payment, along with certain other smaller, yet significant, prospective orders, will materialize in the fourth quarter of 2010. However, the Company does not have sufficient clarity that this payment or these other international orders will materialize within this time frame. As a result of these and other factors, while the Company anticipates that its revenues, operating income and net income in 2010 will show marked improvement over 2009 results, they will not be at record levels.


The Company will update its 2010 guidance and provide additional detail regarding the status of international orders during its third quarter investor conference call on November 11, 2010.


About Digital Ally, Inc.


Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial security applications. The Company’s primary focus is digital video imaging and storage. For additional information, visit


The Company is headquartered in Overland Park, 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: the Company’s ability to achieve marked improvement in revenues, operating income and net income in 2010 (vs. 2009) in the current uncertain economic environment; its ability to expand its share of the in-car video market in the domestic and international law enforcement communities; its ability to obtain additional orders from federal government agencies and military organizations in Mexico; uncertainties regarding market acceptance, domestically and international; competition; 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 risk 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, 2009 and its report on Form 10-Q for the three and six months ended June 30, 2010, as filed with the Securities and Exchange Commission.


For Additional Information, Please Contact:


Stanton E. Ross
(913) 814-7774




RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893


Digital Ally
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