Who We Are

•Public since 2007- NASDAQ Exchange (DGLY)

•Provide audio/video recording equipment to law enforcement agencies (dashboard cameras & body cameras)

•First to provide full digital “solid state” systems which replaced VHS and early-state digital systems

•Received multiple patents for body-worn cameras, rear-viewmirror and other supported technology

•VuLink™ “Automatic Trigger” patented technology is becomingindustry standard

•VuLink™ patent was challenged by a competitor recently withthe US Patent Office recertifying the validity of our patent

Our Business

Law Enforcement (90% of our business for 2015 YTD)• In-Car Video (75% of total law enforcement)• Body-Worn Cameras (25% of total law enforcement)• Customers Include: City, State, Country and Federal Law Enforcement

Agencies, Military, International and Domestic

Commercial Fleet (10% of our business for 2015 YTD)• Incident Reporting• Body-Worn Cameras• FleetVu: web-based fleet monitoring• Customers Include: Ambulance, Fire, Paratransit, Taxicab, Mass

Transit, etc. (anyone who manages a fleet of vehicles)

Taser International Patent Litigation

Jul. 2014

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________________________________________________________________________________________________Apr. 2015________________________________________________________________________________________________Sept. 2015________________________________________________________________________________________________Dec. 2015________________________________________________________________________________________________Jan. 2016

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• Awarded original VuLink patent• VuLink patent involved hands-free auto-activation technology for body-worn cameras

and in-car video systems. (Activates from light bar, sirens, smart weapons, etc.)• Taser announces Axon Signal product which covers the same and/or similar features as our

VuLink product

• Taser requests USPTO re-examination of VuLink patent

• Taser prematurely and inaccurately declares USPTO invalidation of VuLink patent

• USPTO denies Taser’s attempt to invalidate VuLink patent

• USPTO confirms VuLink patent and reissues patent expanding patent to 59 total claims• Digital files patent infringement lawsuit against Taser

• USPTO awards second patent to Digital for VuLink technology• Digital amends lawsuit against Taser to include infringement of second lawsuit and new claims

for commercial bribery and conspiracy to secure no-bid contracts in violation of both state and federal antitrust laws

• Taser requests extension of time to answer lawsuit and files motion to dismiss• Discovery expected to begin

Our Law Enforcement Competitors

• We are the only public company in our direct market channel

• Dominated by smaller non-public entities or small divisions of large public companies

• Many knock-offs entering market with little or no security and back-office software

In-Car Video

Body-Worn Cameras

Watchguard Video - Texas-based non-public entityCoban Technologies - Texas-based non-public entityL3 Communications - New York-based public companyPanasonic - Small division of large conglomerate

All of these provide in-car video solutions and are launching their own body-worn cameras.

Taser International - Arizona-based public companyVieVu - Washington-based non-public company that private labels to othersReveal Media - UK based non-public entity

Many other smaller and larger companies developing body-worn systems

Complete Line of Law Enforcement Video Systems

DVM-800 - Feature Rich In-Car VideoUnder $4,000 + Current & Future Trade-In CreditsLaunched in 2013

• Up to 8 Cameras; Unique Back-Up Camera• Integrated Wireless• Intelligent Dual Simultaneous Recording• Loop + Incident Recording• Advanced Replacement Warranty Coverage• and More!

MicroVu HD - Compact Video System

• Launched in 2015

• 720p or 1080p HD Quality w/ Advanced Compression

• Instant RFID Login Option

• VuVault GO™ Mobile App &

VuLink™ Compatibility

• G-Force & Other Automatic

Recording Capabilities

• Enhanced Low-Light & Wide Dynamic Range Capture

• Integrated Wireless Transfer & Live Streaming Capability

• Pre-Event Recording

FirstVu HD - Ahead of the CompetitionLaunched in 2013

• Smaller & Lighter• User-Replaceable Battery -

Last for Full Shift• 720p HD Video with

different Quality Options• Wide Field of View• Enhanced Low-Light

Sensitivity• Multiple Mounting

Options including POV and single mount• Pre-Event Recording• Recording Security & More...

FirstVu HD Competition

FirstVu HD Leading Head-Mounted Competitor

Leading Body-Mounted Competitor

Resolution 1280x720 720p HD640x480 SD 640x480 1280x720 720p HD

Field of View 130° 75° 68°

Field of View .08 Lux ≤ .1 Lux not available

Automatic Vehicle Recording VuLink™ none none

Internal Memory 32GB 8GB 16GB

Record Time (Highest Quality) 25 hours 4 hours 6 hours

Pre-Event up to 60 secondsvideo & audio (config) 30 seconds video only none

Battery Life (Recording, Instant-On Standby)

4.5 hours*72 hours*

4 hours12+ hours

5 hours72 hours

Quality Settings 8 HD & SD modes/fps adjustable adjustable

Weight Camera = .35 ozBody = 3.1 oz

Camera = .53 ozBody = 3.2 oz 2.8 oz

Battery Service 1 replacement included $35 thereafter

not user replaceabletime/cost not available

not user replaceable$125 replacement cost

Warranty 1 year (extended available) 1 year 90 day

VuLink - Revolutionizes Connectivity

Launched in 2014; Patent granted in 2014

• Connects Body Cam with In-Car Video• Simultaneously Starts Recordings on Both Systems• Utilizes Automatic In-Car Recording Triggers• Eliminates Distraction, the Need to

Continuously Record & User Error

• Can Link Recordings from Both systems in the Back-Office Software

• Quickly becoming industry standard• Patented, competitors have

challenged without success.

Live Streaming & Mobile App

Live Streaming

Mobile App

• Real-time remote situational awareness during incidents

• Only requires Wi-Fi hotspot

• Supports numerous devices

• High quality, 30 frames/second

• Streamlines review process

• Secure, logs usage

• Adds incident information

• GPS Tagging

• Device Control

• Storage & Battery monitoring

Cloud Storage - Subscription based

• Offered as alternative to servers (which will also continue to be sold)

• Perfect for departments with no IT personnel

• Provides off-site evidence backup• Lower up-front cost for customer• Provides consistent, long term

income and loyalty• Developing Hi-bred system

utilizing cloud and local storage

DVM-250 Series - Passager Documentation & Fraud Protection

• Reduces Accidents, Fraud & Litigation as much as 75%• Immediate Driver Feedback• Continuous loop while simultaneously recording events• Up to 8 Cameras; Unique Back-Up Camera

• FleetVu’s Comprehensive Fleet Management platform• FleetVu Cloud: DVM-250 Series video coverage• FleetVu Manager: DVM-250 Series video coverage & Asset

Tracking (Manage ROI through posted Speed Limits & Idle Time)• FleetVu Mobile: Supports either solution

Global InterestDigital Ally currently serves all 50 states & over

90 countries with over 6,000 customers

Digital Ally has approximately 20 Domestic Direct Sales Representatives & 40 International Distributors

with over 50 Subagents

Digital Ally™ Open Golf TournamentDigital Ally™ is partnering with the PGA Tour, Web.com Tour, and the Kansas City Crusaders to raise money to benefit Fallen First Responders (FFR) through the Digital Ally™ Open golf tournament. Digital Ally™ will sponsor this event for the next 5 years.

The following charities were chosen:

S.A.F.E - Provides the comfort of financial support for the families of sworn law enforcement officers, firefighters and emergency services personnel who lose their lives in the performance of their duties.

C.O.P.S. - Provides resources to assist in the rebuilding of the lives of surviving families of law enforcement officers who h ave died in the line of duty.

National Fallen Firefighters Foundation - Its mission is to honor and remember America’s fallen fire heroes and to provide resources to assist their survivors in rebuilding their lives and to work within the fire service community to reduce firefighter deaths and injuries.

Children’s Mercy Kansas City - A national and international leader recognized for advancing pediatric health and delivering optimal health outcomes through innovation and a high-value, integrated system of care.

Balance Sheet | December 31, 2015 (in millions)

Cash ……………………………………………Other Current Assets ………………….

Total Current Assets ……………………FF&E And the LT Assets ………………

Total Assets ………………………………..

Current Liabilities ………………………Deferred Revenue – Long Term ….

Total Liabilities ……………………………Total Stockholders Equity ……………

Total Liabilities & Equity ………………

$6.914.8

__________________________

21.71.8

____________________

$23.5______________________________________________________________________________________________________

$3.01.7

____________________

4.718.8

____________________

$23.5______________________________________________________________________________________________________

Capitalization at December 31, 2015

• Total Shares and Dilutive Securities Outstanding: 6,922,647• Total Shares outstanding – 5,178,480• Warrants outstanding ($13.25 weighted avg.) – 1,599,290• We will receive $21.2 million cash upon exercise of these warrants• Options outstanding ($20.43 weighted avg.) – 328,690• We will receive $6.7 million cash upon exercise of these options

• During July 2015: completed a registered direct offering of 879,766 common shares at $13.64 per share and warrants to purchase 1,314,852 common shares at $13.43 per share. (Total gross proceeds of $12 million before any warrant exercise)

• Total Shares Authorized: 25,000,000

• Board Members and Officers have 11.2% in beneficial ownership (14.8% with unvested restricted stock)

Future Excitement - 2016 & Beyond

• New Products will dominate:-FirstVu HD Body-Worn Cameras-DVM-800 In-Car Video System-VuLink (patented) - Competitors challenge to the patent have beendenied by the USPTO-MicroVu HD In-Car Video System

• Domestic Law Enforcement market improving-Budgets and Funding is becoming less of an issue-Courts and Juries demanding video evidence-Liability protection is proven-Our product suite is second to none

• International Law Enforcement market is improving-Market potential is vast-Customers are adopting our solution

• Commercial Fleet market is diversifying our revenue base-Gaining traction in all markets-Our product is proven and preferred