MDI, Inc. Announces $580,000 in Sales Orders to Three Government Facilities

LearnSafe(R) Announces Video Surveillance Order from Ector County ISD
Jerry Howell Awarded Stock Inducement Grant as Vice President - Inside Sales

SAN ANTONIO, Texas – August 19, 2008 - MDI Security Systems, a division of MDI, Inc. (NASDAQ: MDII - News), announced today that it has sold $580,000 in security products, software, integration services, installation services and training to three individual Government organizations during the month of August.
These three organizations include:

1. A United States Army Weapons Depot (Classified Site);

2. A United States Government Communications Systems Operating Location (Classified Site); and

3. A United States Army Post housing over 20,000 soldiers.

The unique customization features of MDI's award-winning security system will empower these government clients to implement multiple layers of security protection across their organization. As an event occurs, MDI's unified system gives security managers complete base-wide situational awareness capabilities. This awareness allows them to command and control integrated security points as needed, across multiple remote locations, in real-time.

Government organizations have trusted MDI solutions to secure their people, facilities and assets for over 29 years.

Additionally, the LearnSafe Direct inside sales center has announced a video surveillance product order from Ector County Independent School District in Odessa, Texas. The District will utilize MDI ViewPoint™ video surveillance products, purchased from the LearnSafe Direct Summer 2008 Catalog, to secure multiple elementary and junior high schools. The purchase was made via the The Cooperative Purchasing Network (TCPN).

As previously announced in an MDI press release dated August 11, 2008, Jerry Howell has been hired to lead the LearnSafe Direct Sales Team. Mr. Howell joins the MDI LearnSafe Team from Rackspace® Hosting (NYSE: RAX - News), where he most recently managed the new U.S. Channel Sales initiative for the Company.

In connection with the hiring of Jerry Howell and as approved by the Board of Directors of the company, on August 14, 2008 Jerry Howell was awarded an inducement grant of an option to purchase 250,000 shares of the company’s common stock. The inducement grant was made pursuant to an exemption from NASDAQ's shareholder approval requirements under Section 4350(i)(1)(A)(iv) of the NASD Marketplace Rules, which require public announcement of inducement grants. The option has a five-year term and an exercise price equal to $0.33. The option vests as follows: 12 ½ % shall vest on October 1, 2008 and is exercisable at any time thereafter and an additional 12 ½ % shall vest on the first day of each calendar quarter thereafter and is exercisable at any time thereafter.

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
STRUCTURE Real Estate Development Company

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