$DGLY and VIEVU®, LLC Enter into Supply Agreement

VIEVU® to have exclusive rights to integrate Digital Ally’s patented VuLink® technology in its body-worn camera products

LENEXA, KS, Oct. 20, 2017  — Digital Ally, Inc (Nasdaq: DGLY) today announced that it has entered into an exclusive supply agreement with VIEVU®, LLC, owned by The Safariland Group (“VIEVU”), to integrate Digital Ally’s patented VuLink® automatic activation technology with VIEVU’s suite of body-worn cameras. This integration allows VIEVU’s body-worn camera to receive wireless triggers from emergency lights, speed thresholds, or even from a Digital Ally in-car video system to automatically activate a recording without requiring officers to manually start the recording.

The VuLink® product allows Digital Ally’s in-car video systems and VIEVU’s body-worn cameras to work seamlessly together, providing law enforcement with a fully integrated audio/video recording system for capturing activities and evidence collected in the field.

The supply agreement provides VIEVU with the exclusive right to integrate the VuLink system in its body camera products. The supply agreement is renewable annually as long as VIEVU® purchases at least 10,000 VuLink systems in 2018, with minimum purchases requirements increasing in 2019 for calendar year 2020. The agreement can be extended by the parties thereafter subject to mutual agreement. The engineering and integration of VIEVU body-worn cameras with the VuLink® system has been completed and the integrated system is now being actively marketed by VIEVU.  Digital Ally® will continue to market the VuLink® system with its FirstVu HD body camera and line of in-car video systems to its customers and prospective customers.

Sean McCarthy who leads VIEVU and Safariland’s wearable technology business commented, “VIEVU, with its outstanding technology platform and track record of growth is excited to now offer a complete solution that includes the integration of Digital Ally’s VuLink® connectivity system with VIEVU’s suite of body-worn cameras.  VIEVU and our customers recognize the value of automatic hands-free activation of VIEVU’s cameras.  There have been several recent positive developments in the U.S. Patent and Trademark Office relative to the VuLink® patent, which appears to confirm the validity of Digital Ally’s technology.  VIEVU recognizes the apparent validity of the VuLink® system patent which has led us entering into the supply agreement with Digital Ally.”

Stanton Ross, CEO and President of Digital Ally, commented, “We are excited to enter into this supply agreement with VIEVU and are appreciative of it acknowledging our patent and choice to enter into this agreement. This agreement will provide a clear path forward for VIEVU’s customers to realize the value of a complete solution with automatic activation and help clarify to our competitors and to the entire law enforcement community which offerings will be available exclusively with our patented technology.”

The patented VuLink® system is at the heart of Digital’s lawsuit currently being litigated against Axon Enterprises (“Axon,” formerly known as TASER International, Inc.). The lawsuit alleges that Axon is willfully infringing Digital’s patents directed to an ecosystem for automatically activating law enforcement recording devices which is embodied in the VuLink® product. Digital believes that Axon has grown its own market share on the back of Digital’s innovations because it was unable to develop its own solution. Ross stated, “Digital will continue to aggressively pursue its claims that Axon has willfully infringed its patent. We are committed to holding Axon accountable for the significant damages associated with Axon’s infringement of the VuLink® patent. With the defeat of Axon’s inter partes review (“IPR”) for the VuLink® ‘patent we will request an expedited path to trial where a jury can assess Axon’s willful infringement of the ‘452 Patent and award Digital Ally appropriate damages.” On July 6, 2017, the U.S. Patent Office (the “Patent Office”) denied Axon’s petition for IPR of Digital’s Patent No. 9,253,452 (the “’452 Patent”). And on August 3, 2017, the Patent Office denied Axon’s final petition for IPR of the ‘452 Patent. The Patent Office determined that Axon failed to demonstrate even a reasonable likelihood of invalidating the ‘452 Patent in its IPR petition, and therefore such IPR’s were dismissed. This was Axon’s final attempt to invalidate the ‘452 Patent before the Patent Office and it is now statutorily barred from filing any additional IPR’s.

About Digital Ally
Digital Ally, headquartered in Lenexa, KS, specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, commercial fleets, and consumer use. Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.

About VIEVU

VIEVU® is a leading provider of body-worn camera and video technologies, providing secure, high-quality video cameras for law enforcement, security, emergency medical services, and first responders. VIEVU Solution™, the company’s next generation fully-hosted cloud evidence management system, is built on Microsoft® Azure Government Cloud, the first enterprise cloud compliant with the FBI’s Criminal Justice Information Services (CJIS) standards. VIEVU was the first provider of body-worn cameras with Automated Video Redaction technology, a highly advanced redaction tool built to automatically blur faces and objects recorded on body-worn cameras, without user involvement, in order to protect the privacy and identity of victims, innocent bystanders, minors and undercover police officers. Built on police experience, VIEVU technology is used by thousands of law enforcement agencies in 17 countries. For information please visit www.vievu.com.

About The Safariland Group 
The Safariland Group is a leading global provider of a broad range of safety and survivability products designed for the public safety, military, professional and outdoor markets. The Safariland Group offers a number of recognized brand names in these markets including Safariland^®, Med-Eng^®, Safariland^® Armor, Safariland^®VIEVU®^®, Mustang Survival^®, Bianchi^®, Break Free^®, PROTECH^® Tactical, Defense Technology^®, Hatch^®, Monadnock^®, Identicator^® and NIK^®. The Safariland Group’s mission, “Together, We Save Lives™”, is inherent in the lifesaving and protective products it delivers. The Safariland Group is headquartered in Jacksonville, Florida. The Safariland Group is a trade name of Safariland, LLC.

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 Company will achieve positive outcomes in its patent litigation with various parties, including Axon Enterprise, Inc.; whether the USPTO rulings will curtail, eliminate or otherwise have an effect on the actions of Axon and other parties respecting the Company, its products and customers; whether the Company will be able to adapt its technology to new and different uses, including being able to introduce new products; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; 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, 2016 and quarterly report on Form 10-Q for the three and six months ended June 30, 2017, filed with the Securities and Exchange Commission.

Contact Information
Stanton Ross, CEO
Tom Heckman, CFO
Digital Ally, Inc
913-814-7774

info@digitalallyinc.com