Major Contract Announcement after the market close:
digitalallyinc.com
DIGITAL ALLY RECEIVES INTERNATIONAL CONTRACTS FROM
SOUTH AMERICA AND MIDDLE EAST
COMPANY ALSO REPORTS RECEIPT OF STATEWIDE CONTRACTS
FROM TEXAS AND MINNESOTA
OVERLAND PARK, Kansas (April 21, 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 the recent receipt of a major contract from a South American country and an
initial pilot order from a Middle Eastern country. The Company also reported the receipt
of two statewide contracts during March and April 2010.
A Digital Ally sales agent in South America recently received a contract for 700 DVM-
750 Digital In-Car Video Systems from the Highway Patrol Division of a South
American country. The name of the country was not disclosed. The Company expects
to ship between 100 and 200 systems per month over the next four to six months in
accordance with the installation and training schedule of the Highway Patrol in such
country.
“Our systems will be deployed in Highway Patrol vehicles throughout the country, and
we expect additional orders from municipalities once they become aware of the DVM-
750 systems in Highway Patrol vehicles,” stated Stanton E. Ross, Chief Executive
Officer of Digital Ally, Inc. “Our South American sales agent also expects additional
orders to be forthcoming from two of the country’s other Federal Agencies later this
year. In total, we believe over 1,000 of our in-car video systems could be supplied to
law enforcement agencies in this country during 2010, representing the largest
deployment of systems to a single country in South America to date.”
The Company also announced that one of its sales agents in the Middle East has
received an initial order for DVM-500 Plus Digital In-Car Video Systems from the
Ministry of Interior of a Middle Eastern country for a pilot project involving that country’s
Highway Patrol Department. This will represent the country’s first deployment of digital
in-car video systems in its Highway Patrol vehicles. The systems will be used for
evidence gathering and the documentation of criminal activities in a manner that is
similar to the manner in which in-car video systems are used by law enforcement
agencies in the United States. “We believe that a key factor in our being awarded this
contract involves our development last year of software architecture for Arabic and other
languages that enables our products to be more competitive in foreign markets,” noted
Ross. “If the pilot project is successful, our sales agent believes that a significant
follow-up order for DVM-500 Plus units could be forthcoming later this year.”
In the United States, Digital Ally reported that it has received two statewide contracts
since the beginning of March 2010.
Last month, the Company was selected by the Texas Department of Information
Resources as an approved supplier of in-car video systems to state, county and
municipal law enforcement agencies throughout the state. Such purchases will be at
pre-determined prices, thereby eliminating the requirement that each agency or
institution independently negotiate the terms of its purchases. The contract supersedes
and expands upon an earlier contract between Digital Ally and the Texas State
Procurement and Support Services Division. Among the 50 states, Texas is the largest
purchaser of in-car video systems. Agencies outside the State of Texas, including
public education organizations, can also purchase in-car video systems at comparable
prices, under the terms of an inter-agency agreement. The initial Texas contract
expires in March 2011 and includes renewal options for three additional years.
In April, Digital Ally was awarded a statewide contract for in-car video systems by the
State of Minnesota that allows all state and local law enforcement agencies to purchase
equipment at pre-determined prices and under similar terms and conditions. The
Minnesota Department of Public Safety has indicated that 500 to 600 in-car video
cameras will likely be purchased from authorized suppliers, through a federal grant
process, during the first nine months of 2010. The initial Minnesota contract expires in
April 2011 and includes renewal options for three additional years.
“We are very pleased to announce these new statewide contracts, which bring to a total
of 12 the number of states that have entered into similar purchasing contracts with
Digital Ally,” concluded Ross. “Texas was our largest customer during 2009, in terms
of sales, and Minnesota came in at number six. On a combined basis, over 13% of last
year’s U.S. sales were generated by law enforcement agencies in these two states. We
expect these new contracts to significantly increase our sales in both states in 2010 and
in future years, if the contracts are extended as expected.” |
