-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 SPo/TB2moRZi5DSD4xXL70mHVjA7HY/E+FBnyd3NhT8sGmQeDxJeRLHSzVTg3M6A
 JzlnrhovbX+QwFztaf+4LA==

<SEC-DOCUMENT>0001181431-08-001958.txt : 20080104
<SEC-HEADER>0001181431-08-001958.hdr.sgml : 20080104
<ACCEPTANCE-DATETIME>20080104213302
ACCESSION NUMBER:		0001181431-08-001958
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080102
FILED AS OF DATE:		20080104
DATE AS OF CHANGE:		20080104

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIGITAL ALLY INC
		CENTRAL INDEX KEY:			0001342958
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		7331 W 130TH ST
		STREET 2:		STE 170
		CITY:			OVERLAND PARK
		STATE:			KS
		ZIP:			66213
		BUSINESS PHONE:		913-232-5349

	MAIL ADDRESS:	
		STREET 1:		7331 W 130TH ST
		STREET 2:		STE 170
		CITY:			OVERLAND PARK
		STATE:			KS
		ZIP:			66213

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MCCOY KENNETH L
		CENTRAL INDEX KEY:			0001276577

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33899
		FILM NUMBER:		08513604

	BUSINESS ADDRESS:	
		STREET 1:		15 S. HIGHLAND
		CITY:			CHANUTE
		STATE:			KS
		ZIP:			66720
		BUSINESS PHONE:		913-814-7774

	MAIL ADDRESS:	
		STREET 1:		7311 W. 130TH
		STREET 2:		SUITE 170
		CITY:			OVERLAND PARK
		STATE:			KS
		ZIP:			66213
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd187526.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-01-02</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001342958</issuerCik>
        <issuerName>DIGITAL ALLY INC</issuerName>
        <issuerTradingSymbol>DGLY</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001276577</rptOwnerCik>
            <rptOwnerName>MCCOY KENNETH L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>7311 WEST 130TH STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 170</rptOwnerStreet2>
            <rptOwnerCity>OVERLAND PARK</rptOwnerCity>
            <rptOwnerState>KS</rptOwnerState>
            <rptOwnerZipCode>66213</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Vice President of Marketing</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6.80</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-01-02</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>150000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2018-01-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>CommonStock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>150000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>950000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">These options to purchase shares of Common Stock were granted to the Reporting Person under the Digital Ally, Inc. 2008 Stock Option and Restricted Stock Plan on January 2, 2008, subject to approval of such Plan by the stockholders at the next annual meeting of stockholders. The options will vest 15,000 on January 2, 2009; 30,000 on January 2, 2010; 45,000 on January 2, 2011; and 60,000 on January 2, 2012.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Kenneth L. McCoy</signatureName>
        <signatureDate>2008-01-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
