MDI Subsidiary, FAS Construction, LLC, Finalizes General Contractor Agreement to Build New Staybridge Suites Hotel in San Antonio, Texas

FAS Construction to Break Ground on New Upscale Staybridge Hotel Project

SAN ANTONIO--(May 21, 2008)-- MDI, Inc. (NASDAQ: MDII) subsidiary, FAS Construction, LLC, today announced that it has closed on a contractual agreement to perform as the Prime General Contractor for the newest upscale Staybridge Suites Hotel to be built on 2.68 acres at 808 East North Loop 1604 near Stone Oak Parkway in San Antonio, TX. The 135-suite, five-story hotel will be constructed using a more opulent design package than traditional Staybridge properties and is projected to include an underground parking facility as one of its many unique amenities.

The hotel, an InterContinental Hotels Group (IHG) managed property, is being built under a license agreement with property owner and developer Montex Real Estate, Co., LLC, based in Monterrey, Mexico. MDI previously announced the signing of a formal letter of intent with Montex and additional project details in a release dated November 29, 2007.

FAS Construction will break ground as General Contractor on the multi-million dollar project next week. The new hotel is scheduled to open for business in June 2009 and Montex has communicated plans to open additional Staybridge properties in the local area in the near future.

“By utilizing FAS Construction Management’s thirteen years of success as the de-facto standard in the construction risk management industry, encompassing hundreds of large construction projects across the globe, our FAS Construction, LLC, (General Contracting) Team is able to perform construction services more efficiently and effectively than our competition,” stated J. Collier Sparks, President, Chief Executive Officer and Board Member for MDI, Inc. “This groundbreaking event is a major milestone for MDI. Not only does it add significant revenue to MDI and several of our business units, it also validates the success of the corporate diversification strategy that we communicated to our shareholders in late 2007, which included expanding our construction management capabilities to include total construction services as a General Contractor. We have a significant construction sales pipeline that we will continue to develop and we look forward to announcing additional large projects in the future,” he concluded.

The FAS team has been providing pre-construction services on this project since the signing of the original letter of intent last November. These services have included monitoring architectural plans, developing specifications, value engineering, coordination and all permitting. In addition to acting as general contractor, FAS will also perform their exemplary project and construction risk management services. The project is expected to bring more than 20 new employment opportunities to the growing northern section of the city.

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 Security Systems is a security software and hardware manufacturer who’s ONE Unified Technology™ currently protects over 10 million alarm points across the globe for many of the world’s most recognized and secure organizations.  Clients include the Smithsonian, Bank of America, John Deere, Pepsi, FBI, TSA (Homeland Security), Fidelity Investments, Bureau of Engraving & Printing, American Express, Department of Defense, IRS, Disney, San Diego Unified School District, Fresno Unified School District, Massachusetts Institute of Technology (MIT), every Marine base in the United States and every Naval base in Europe, just to name a few.

MDI Professional Services Group - http://www.mdiincorporated.com/MDI_PSG.pdf
The MDI Professional Services Group (PSG) provides comprehensive integration services and professional consulting for complex enterprise security and IT related projects.  PSG designs, develops, and manages the implementation and testing of security technologies and solutions that protect mission critical assets for a variety of organizations worldwide. PSG assists their clients at every stage of the systems life cycle, from crafting policies and criteria to development, administration, operation, management, training and maintenance of systems.  PSG also offers central station monitoring capabilities for alarms, fire and video surveillance in a managed service environment from their central command center.

The LearnSafe Initiative™ - www.learnsafe.org
LearnSafe™ is a comprehensive school safety and security program created in 2006 in response to an alarming increase in violence and misconduct in our nation’s schools. LearnSafe founding partners include Nortel (www.nortel.com), ASSA ABLOY (www.assaabloydss.com), MDI Security Systems (www.mdisecure.com) and The SBS Group (www.thesbsgroup.org).  An innovative new program, LearnSafe provides the people, processes and technology to dramatically decrease the safety risks that teachers, administrators and students face on school campuses.  The program addresses every layer of safety and security in schools and includes an innovative behavioral intervention module that fosters an environment in which children can learn without fear.

FAS Construction Management - www.fascompanies.com
FAS Construction Management was established to deliver financial integrity and proactive problem solving to the construction process. FAS assists owners, lenders and contractors with large construction projects and uses its expertise to understand risks in the construction process, identify possible problem areas and eliminate them from the project from inception. FAS Construction Management has proven to be the de-facto standard for US-based organizations and REITS seeking to secure their investments in the development of new construction projects throughout Mexico and South America. FAS is also the leading authority on assisting International Investors and Commercial Construction Lenders in taking large construction projects from concept to completion in the United States.

FAS Construction, LLC
FAS Construction, LLC, provides general contracting services to developers and owners that deliver turnkey construction projects – on time and on budget.  The company utilizes decades of experience and key partnerships gained from the success of its worldwide construction management business to deliver value to its clients from concept to completion.

Forward-Looking and Cautionary Statements
Except for historical information and discussions contained herein, certain statements included in this document may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this document, other than statements of historical fact, that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements represent our reasonable judgment on the future based on various factors and using numerous assumptions and are subject to known and unknown risks, uncertainties and other factors that could cause our actual results and financial position to differ materially from those contemplated by the statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as “look forward to,” "anticipate," "estimate," "project," "forecast," "plan," "may," "will," "should," "expect" and other words of similar meaning. Investors should not rely on forward-looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the Company's expectation. Additional information concerning risk factors is contained from time to time in the Company's SEC filings. The Company expressly disclaims any obligation to update the information contained in this release.

All product and company names mentioned herein may be the trademarks of their respective owners.

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