SAN ANTONIO - MDI, Inc. (NASDAQ:MDII - News) announced today that it has been granted a new patent for video data storage by the United States Patent and Trademark Office.

MDI has been granted U.S. patent number 6,892,246 entitled "Computer System and Method for Storing Video Data" effectively serving to strengthen the Company's intellectual property portfolio and supporting its strategy of increasing shareholder value through the licensing of patented technology.

Summary of InventionAccording to J. Collier Sparks, CEO and President of MDI, Inc., "The patent covers a major development for a method of storing video data in computer memory. Based on this innovative technology, the Company now has a method for storing video data in a mass storage device where once the mass storage device has reached its capacity, the oldest video data is degraded by removing random pixels from the video frame."

BackgroundMr. Sparks went on to say that, "This invention solves the problem that software developers and users have had for years in developing processes to store data in the least amount of space required in a mass storage device. While there are numerous compression techniques available, the storage of data using these compression techniques ultimately result in the filling of the available storage space. MDI's invention solves this problem byentifying the oldest video data, removing it from mass storage, degrading the video data and thereby leaving space in the mass storage device to store the most recently received video data."

Company Strategy to Develop the Invention"MDI now commands revolutionary technology that allows a dramatic increase in the online time of digital storage devices to the longest possible in the industry. Current proprietary hardware and software under development by the Company will allow its customers to control the level of video data compression tailored to their needs based on image resolution instead of hardware capacity," said Sparks.

"In conjunction with our recently announced acquisition of Advanced Security Link, Inc. of Costa Mesa, California, we plan to release a digital storage system in the second quarter of 2006 that is fully integrated with our proprietary SAFEnet® system," said Sparks.

Company Strategy to License TechnologyRichard A. Larsen, Senior Vice President and General Counsel of the Company, commented that, "The company believes in the value of creating intellectual property as well as developing the necessary strategies to protect those assets. To that end, we invite all interested parties to contact us should they be interested in practicing any of the claims disclosed in the patent. We are certainly receptive to discussing an immediate license of the patent and the technology disclosed in and protected by it."

For more information please contact Richard A. Larsen, Senior Vice President and General Counsel, MDI, Inc. by phone at 210-582-2664 or by email at Richard.larsen@mdisecure.com.

About MDI, Inc.For over 25 years, MDI (NASDAQ:MDII - News) has been protecting its clients' people, facilities and assets by manufacturing advanced integrated security software and video surveillance solutions that can be comprehensively managed across an enterprise from a central point of command and control. 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, US Secret Service, Fidelity Investments, Bureau of Engraving & Printing, Southwestern Bell, Department of Defense, IRS, NASA, Disney, Smithsonian Institution and MIT to name a few. For more information on MDI Security Systems including its award-winning SAFEnet, iTRUST, VIEWpoint and nTEGRITY product lines, please visit www.mdisecure.com.

Forward-Looking and Cautionary StatementsExcept 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.

Investor Relations Contact:Richard A. LarsenMDI, IncorporatedEmail: Richard.Larsen@mdisecure.comPhone: (210) 477-5400

Media Contact:Michael M. GarciaMDI Security SystemsEmail: Mike.Garcia@mdisecure.comPhone: (210) 477-5400