MDI Attains Ownership of Learn Safe™ and Other Security Programs under the "Safe Initiatives" Brand

Business Wire, July 16, 2007

SAN ANTONIO -- MDI, Inc. (NASDAQ: MDII), the leading provider of Unified Technology[TM] solutions for the security industry has today announced the following significant events:

* Ownership of LearnSafe and Other Safe Initiatives

On July 11, 2007, MDI attained ownership of the "Safe Initiatives" brand portfolio formerly under Stratis Authority, Inc. The transaction included the unique program financing model that is designed to deliver affordable alternative funding methods to end-users requiring comprehensive safety and security programs. MDI's new brand portfolio will consist of Learn Safe[TM], Work Safe[TM], Play Safe[TM] and Live Safe[TM]. Further details on the formal launch of these brands by MDI will follow at a later date.

As part of the transaction, the rights to trademarks and tradenames associated with the Safe Initiatives, including the name "Stratis", have been assigned to MDI. It is the decision of MDI management to discontinue all use of the name "Stratis" immediately. All "Safe Initiative" operations previously handled from the Stratis Florida office will be administered out of MDI's corporate headquarters in San Antonio, Texas.

The following URLs, phone and fax numbers have been assigned to MDI and will be redirected to the appropriate MDI personnel in San Antonio, Texas:

* www.learnsafe.org (including all corporate email addresses)

* www.stratisauthorityinc.com (including all corporate email addresses)

* The Learn Safe toll free number - (866) 423-1740

* General telephone number - (407) 423-1740; and

* Fax number - (407) 805-0338

MDI has begun the integration of the new "Safe Initiatives" business into the MDI business infrastructure. MDI management, under the direction of CEO and President J. Collier Sparks, will manage this integration.

* Resignation of Mr. James M. Vandevere from the MDI Board of Directors

Mr. James M. Vandevere resigned as a Director of MDI, effective July 11, 2007. The company has no present intention to fill the vacancy.

* MDI Suit Against Ecomatrix Funding and Minh Phan Settled

On June 15, 2007, the suit brought by MDI against Ecomatrix Funding, Inc. and Minh Phan was resolved to the parties' mutual satisfaction. All litigation between the parties has been dismissed. MDI continues to own all of the ASL assets and rights it acquired in January 2006, including all of the ASL intellectual property rights, software, trademarks, goodwill, customer and supplier agreements. The California office formerly occupied by ASL has been transferred to MDI's San Antonio, Texas headquarters. Effective February 2007, Minh Phan ceased to be associated with MDI.

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, The Smithsonian, MIT and San Diego Unified School District 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.

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.