FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * RICHIE LEROY C   2. Issuer Name and Ticker or Trading Symbol DIGITAL ALLY INC [DGLY] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 7311 W. 130TH, SUITE 170 3. Date of Earliest Transaction (Month/Day/Year) 08/04/2008 (Street) OVERLAND PARK, KS 66213 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 08/04/2008   M   4,567 (1) A $ 1 14,567 D   Common Stock 08/04/2008   S   3,700 (1) D $ 8.01 10,867 D   Common Stock 08/04/2008   S   867 (1) D $ 7.71 10,000 D   Common Stock 08/04/2008   M   18,102 A $ 1 28,102 D   Common Stock 08/04/2008   M   89,561 A $ 1.6 117,663 D   Common Stock 08/04/2008   F   21,463 (2) D $ 7.52 96,200 D   Common Stock 08/06/2008   G V 6,200 D $ 0 90,000 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option (Right to Buy)

$ 1

08/04/2008

M

4,567 (1)

09/01/2005(3)

08/31/2015

Common Stock

4,567

$ 0

513,445

D

Stock Option (Right to Buy)

$ 1

08/04/2008

M

18,102

09/01/2005(3)

08/31/2015

Common Stock

18,102

$ 0

495,343

D

Stock Option (Right to Buy)

$ 1.6

08/04/2008

M

66,666

10/01/2007(4)

03/01/2017

Common Stock

66,666

$ 0

428,677

D

Stock Option (Right to Buy)

$ 1.6

08/04/2008

M

22,895

04/01/2008(5)

03/01/2017

Common Stock

22,895

$ 0

405,782

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
RICHIE LEROY C 7311 W. 130TH, SUITE 170 OVERLAND PARK, KS 66213	X

Signatures

/s/ Leroy Richie		08/06/2008
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The transactions reported above in Table I are made pursuant to a plan designed to comply with Rule 10b5-1 (c), which plan was previously adopted on June 2, 2008. The common stock sold was acquired on or before the actual date of sale upon the exercise of stock options evidenced by agreements dated September 1, 2005 and March 2, 2007. The exercise transactions are coded M in column 3 of Table I and report in column 4 the number of shares issuable upon exercise of the option, together with the exercise price with Code A for acquired. The transaction is exempt from Section 16 (b) by reason of Rule 16b-3. The transaction reported in Table II above reflects the disposition of the same stock options whose exercise is disclosed in Table I above. The number of derivative securities owned after the transactions reported in column 9 of Table II above includes only stock options.
(2)	Reflects 21,463 shares withheld by the issuer at the market price of $7.52 per share less an exercise price of $1.60 per share to fund the cashless exercise of 107,663 options.
(3)	The stock options exercised by the reporting person reported on this Form 4 vested on 9/1/2005.
(4)	The stock options exercised by the reporting person reported on this Form 4 vested on 10/1/2007.
(5)	The stock options exercised by the reporting person reported on this Form 4 vested on 4/1/2008.

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