MDI, Inc.’s LearnSafe® Initiative Selected by Dallas County Schools for Implementation of Phase I of its State-of-the-Art Unified Safety and Security Program

Service Provider to over 425,000 Students to Unify Biometrics, Video Surveillance and Keyless Access Control into District-Wide Security Management Platform

SAN ANTONIO, Texas - July 29, 2008 - MDI, Inc. (NASDAQ: MDII), announced today that Dallas County Schools has awarded MDI a contract to begin implementation of Phase I of its school safety and security program within Dallas County School facilities. The purchase was made through The Cooperative Purchasing Network (TCPN) based on MDI’s status as a TCPN vendor.

TCPN is administrated by Texas Region 4 Education Service Center in Houston and is available for use by all public and private schools, colleges, universities, cities, counties and other government agencies in the States of Texas, Arizona, Arkansas, New Mexico, and Oklahoma. As a TCPN vendor, MDI has agreed to provide the best pricing, terms and conditions to customers like the Dallas County Schools that award contracts through TCPN. Additionally, vendors like MDI and purchasers like the Dallas County Schools, each avoids the time and expense of going through a procurement process.

MDI is aggressively working with other public school districts to promote and sell MDI’s LearnSafe® products and services through TCPN. With the distribution last month to over 5,000 potential customers of the LearnSafe Direct Product Catalog, we have created a great interest in LearnSafe and its offerings. We are hopeful that in the very near future we will be able to announce the award of several additional contracts for the installation of a LearnSafe system in public school districts.

Implementation by MDI of its LearnSafe® school safety and security system at Dallas County Schools will begin immediately. In Phase I, MDI will centralize Dallas County Schools safety and security operations into its headquarters building. The installation will include LearnSafe’s state-of-the-art security technology such as infrared detectors, biometric fingerprint readers, integrated time and attendance, networked IP and wireless video surveillance. When installed, Dallas County Schools’ security personnel will be able to gain complete visualization into all of its participating school facilities, local and remote. The result will be real-time monitoring and management of the Dallas County School’s people, facilities and assets.

By choosing the LearnSafe® Unified solution, the Dallas County Schools will create a full-service central command and control location which will:
• Deliver immediate operational efficiencies and reduce costs;
• Increase security productivity via MDI’s cutting-edge technology; and
• Significantly improve critical event response times.

Dallas County Schools is a county school district that includes 14 independent school dictricts in the Dallas, Texas area and employs over 1,700 professionals affecting more than 425,000 students. The district may service all school districts located throughout the State of Texas. Its offerings include:
• Academic products and services
• Bus fleet management (over 1,600 buses)
• School Psychology services
• Full-line Internet services
• Development services
• Network security offerings
• Offsite network data backup
• Comprehensive training

About MDI, Inc.
MDI, Inc. (NASDAQ: MDII), is the parent company of a diverse set of wholly-owned subsidiaries that have successfully serviced the construction and security industries for over 28 years.  MDI companies deliver security technology products, services and training for government, homeland security, commercial and educational markets as well as comprehensive construction solutions for a variety of clients on an international scale.  MDI companies include:

MDI Security Systems™ - www.mdisecure.com
MDI Professional Services Group - http://www.mdiincorporated.com/MDI_PSG.pdf
The LearnSafe Initiative™ - www.learnsafe.org
FAS Construction Management™ - www.fascompanies.com
FAS Construction, LLC

Forward-Looking and Cautionary Statements
Except for historical information and discussions contained herein, certain statements included in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission.

MDI Investor Relations Contact:
Richard A. Larsen
MDI, Incorporated
Richard.Larsen@mdisecure.com
(210) 582.2664

MDI Media Contact:
Michael M. Garcia
MDI, Incorporated
Mike.Garcia@mdisecure.com
(210) 477.5400