To: David Alan Cook who wrote (67 ) 5/3/2008 10:57:50 AM From: David Alan Cook Respond to of 554 Highlights from TheStreet.com Ratings: Recommendation: "We rate DGLY a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights: DGLY's very impressive revenue growth greatly exceeded the industry average of 24.1%. Since the same quarter one year prior, revenues leaped by 150.1%. This growth in revenues appears to have trickled down to the company's bottom line, improving the earnings per share." "DGLY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.04, which clearly demonstrates the ability to cover short-term cash needs." "The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment & Instruments industry and the overall market, Digital Ally Inc's return on equity significantly exceeds that of both the industry average and the S&P 500." "The gross profit margin for DGLY is rather high; currently it is at 62.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.5% significantly outperformed against the industry average." "Powered by its strong earnings growth of 900% and other important driving factors, this stock has surged by 320.75% over the past year, outperforming the rise in the S&P 500 index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DGLY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year." DC