MDI and Construction Electronics, Inc. Team to Provide Unified Security Solutions to San Diego School District as Part of $5M Blanket Contract Award

CEI to Unify Intelligent IP Video from OnSSI into the MDI Platform to Deliver District-Wide Campus Security with Real-Time Surveillance Management

SAN ANTONIO--MDI, Inc. (NASDAQ:MDII), the leading provider of Unified Technology™ solutions for the security industry today announced that they have partnered with Construction Electronics, Inc. (CEI), a professional services organization that specializes in the design, engineering and management of large complex campus security and communications systems projects, to supply unified security solutions as part of a $5 million blanket contract for campus security with the San Diego Unified School District (SDUSD). The team began the advanced phase of the district's security modernization project with a separate order for two individual school buildings, which was announced by MDI on April 20th of this year.

CEI is scheduled to begin implementation of the district-wide project immediately after the first MDI product order is received and delivered. The initial acquisition will consist of various servers, workstations, identity solutions and operating software as part of the MDI unified security platform, which will act as the head-end for the district's centralized command and control center. SDUSD District Security Managers will utilize the MDI platform to control all security alarms and surveillance points, throughout each target campus in the district, from a central unified location.

The District selected the team's unified solution based in part on its ability to:

• Empower school security teams to analyze and respond to district-wide incidents in real-time
• Leverage the district's existing investments in security point products (cameras, DVRs, biometrics, etc.) to improve security via its open architecture technology platform
• Improve efficiency of security resources through centralized management of security information and reporting from schools across the district
• Ramp up the modernization program with minimal training expense to realize an immediate time-to-benefit from the system
• Install, maintain and respond to system issues according to exact district specifications
• Provide a history of success in delivering and maintaining comprehensive safety and security programs in school district environments vs. the sale and installation of point products (stand-alone camera and DVR products, access control products and alarm monitoring systems) which are not unified and in many instances provide a false sense of security in schools
• Prove and track the effectiveness of the district security program
• Integrate all physical security components directly into the Learn Safe™ program if and when the decision is made by the school to adopt it as a district program

"MDI systems have been successfully securing school districts and diversified educational environments for many years," stated Frank Hermes, President of CEI. "Now that safety and security in schools is a top priority for administrators and educators across the country, that proven experience is more valuable than ever." "By combining the experience of MDI with the school campus security integration knowledge of the CEI team, I am confident that San Diego will soon have a security program that can be used as a model for all schools throughout the State of California and the entire Country," he added.

Once the district's central command center is complete, CEI will begin work on modernizing school campuses within the district that have been identified as initial implementation targets under the blanket contract. The team will unify the NetDVMS™ Intelligent Network Video solution from On-Net Surveillance Systems, Inc. (OnSSI) into the MDI Platform to furnish a combined approach towards prevention, detection and response within campus environments.

"We are pleased to partner with MDI and CEI in the delivery of an integrated security solution for SDUSD. OnSSI's video surveillance platform will provide security officials the ability to effectively and intelligently view, manage, and respond to events, as they transpire in the school environment," said Gadi Piran, President and CTO of OnSSI.

The unified solution will deliver an un-matched security command and control environment, which will automate:

• The identification and location of incidents within a district campus
• The notification of school & security personnel on & off campus
• Real-time incident management and response
• Decision support for access mitigation measures such as school lockdowns
• Visual situational awareness support for law enforcement agencies and first responders

"The CEI technical security team are experts in integrating complex security systems across disperse school district environments," stated J. Collier Sparks, President and CEO of MDI, Inc. "By adding state-of-the-art IP video capabilities from OnSSI into the MDI platform, CEI will take the San Diego School District to new levels of security and surveillance capabilities." "Once again, MDI is proud to be partnering with Frank and his dedicated team of security professionals on this key school security project and we look forward to many more such engagements in the future" he concluded.

About Construction Electronics, Inc.

Construction Electronics Inc. (CEI), founded in 1975, is a professional services organization that provides a technical staff specializing in the design, engineering and project management of large complex security and communications systems. CEI has integrated electronic systems solutions over wide-area information networks for such organizations as Northrop Grumman, Intuit, Kaiser Permanente, San Diego Metropolitan Waste Water, SPAWAR, ISIS Pharmaceuticals, Veterans Administration and the San Diego City Police Department. For more information please visit www.c-e-i.com.

About MDI, Inc.

MDI (NASDAQ: MDII) manufactures security technology solutions designed to protect people, facilities and assets. These solutions are unified by ONE Technology. ONE Technology unifies security point products, systems and subsystems into a common management platform. Far beyond the Integrated Security Management software promoted by industry competitors, ONE delivers an open architecture environment that adapts each individual application and device into its platform - promoting global collaboration as ONE system. The MDI product family currently protects over 8 million alarm points across the globe for many of the world's most recognized organizations including Microsoft, MBNA Worldwide, John Deere, Pepsi, FBI, TSA, Fidelity Investments, Bureau of Engraving & Printing, American Express, Department of Defense, IRS, Disney, Smithsonian Institution and MIT to name a few. The company has received numerous industry awards for their security technology including Frost & Sullivan's Security System Technology Leadership Award and the Security Industry Association's Best Integrated Product Award for 2006. For more information on MDI or its diversified line of products and professional services, please visit www.mdisecure.com.

About OnSSI

On-Net Surveillance Systems Inc. offers a comprehensive IP video surveillance control and management solution. Ocularis, OnSSI's IP Video Control platform, is designed to operate on a single platform with unprecedented levels of user-intuitiveness, open architecture and scalability. With core competencies rooted in both the IT and professional security markets, OnSSI's unique solution provides feature-rich camera management, sophisticated recording and archiving, automatic Push Live Video on event, control-room video-wall management and virtual matrix functionality. OnSSI's IP solutions can be found in a wide range of municipalities, federal and local government agencies, as well as enterprise, industrial, and educational settings. For more information, visit: www.onssi.com.

Certain statements contained herein may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, 21E of the Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements regarding business plans, future regulatory environment and approval and the Company's ability to comply with the rules and policies of independent regulatory agencies. Although the Company believes the statements contained herein to be accurate as of the date they were made, it can give no assurance that such expectations will prove to be correct. The Company undertakes no obligation to update these forward-looking statements.