Digital Ally Views TASER’s Most Recent Invalidity Attack as More of the Same

LENEXA, Kan., Dec. 02, 2016 -- Digital Ally, Inc. (NASDAQ:DGLY) (the “Company”), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced that TASER’s most recent attack on its pioneering ‘292 patent at the United States Patent and Trademark Office (USPTO) is simply more of the same.

In 2015, TASER tried to invalidate Digital Ally’s ‘292 patent through a similar attack at the USPTO. With that attempt, it made the same tired argument that Digital’s ‘292 patent was not new and should be found invalid. Digital Ally asserts that TASER also made the same old promises to its customers and shareholders regarding its chances of success. TASER was wrong. The USPTO fully rejected all of TASER’s arguments, concluding all 59 claims in Digital Ally’s ‘292 patent were valid and non-obvious. TASER’s best arguments and its best prior art failed to convince the USPTO that Digital Ally’s patents lack patentability. Digital Ally is confident that TASER’s second and third string prior art will fare no better.

Tellingly, TASER’s most recent attacks do not rely on a single product, patent, or invention owned by TASER. Despite going to great lengths in its press release to tout its “TACOM” technology, Digital Ally asserts that TASER did not present a single argument to the USPTO that its TACOM technology (or any other TASER product) invalidates Digital Ally’s ‘292 patent. Nor could it. Despite the vague references to TACOM and its possible features in a small handful of presentations, Digital Ally does not believe TASER ever sold any TACOM products. Further, despite claiming to have invented auto-activation technology in 2009, TASER did not release a single product containing auto-activation until after Digital Ally’s patent filings.

“This isn’t the first time TASER has tried to convince its shareholders that TASER’s infringing conduct will be permitted by the Court or the United States Patent Office,” said Stanton Ross, CEO of Digital Ally. “We saw, and beat, the best TASER had to offer in its first attempt. Its latest filing is yet another post-hoc attempt to avoid answering for its willful infringement. We welcome the opportunity to beat TASER again at the Patent Office and look forward to our day in Court where TASER will finally be forced to answer for its conduct,” concluded Mr. Ross.

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. For additional news and information please visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc.

The Company is headquartered in Lenexa, 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 ultimate outcome of the Company’s litigation against TASER International, Inc.; the decision of the USPTO regarding the latest petitions filed by TASER challenging the validity of the Company’s ‘292 Patent; 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.

Contact:

For Additional Information, Please
Stanton E. Ross
CEO
(913) 814-7774       
or
Thomas J. Heckman
CFO
(913) 814-7774