SAN ANTONIO, Texas – MDI, Inc. (NASDAQ: MDII), the leading provider of Unified Technology™ solutions for the security industry today announced that Sentry Hospitality, one of the most progressive and fastest growing, conference hospitality development and management companies in the United States, has signed an agreement with the company to implement the WorkSafe safety and security initiative at select active and developing properties across the country.  WorkSafe will function as Sentry’s security design, implementation and management team.  Each engagement will begin with a WorkSafe comprehensive site survey and risk assessment, after which, decisions on the MDI security solutions to be implemented will be made based on levels-of-risk at the site and any adjoining properties.  These solutions may include unified access control, video surveillance, intrusion detection and any additional products, services and training deemed necessary by the WorkSafe assessment team and approved by Sentry Hospitality Management. Headquartered in New York City, Sentry Hospitality’s current list of active properties where the WorkSafe team has been instructed to direct their initial focus include:

• The 125,000 Square Foot Conference Center in Niagara Falls, NY
• The 6 Story Crowne Plaza in Niagara Falls, New York
• Cal-Neva Resort, Casino and Conference Center in Lake Tahoe
• Morgan Stanley Conference Center in Times Square, NY
• Morgan Stanley 5-Star Executive Conference Center and Amphitheatre in Westchester, NY
• White & Case Executive Conference Center in Midtown Manhattan
• Sentry Hospitality’s current list of properties under development include:
• Riverwinds Golf and Conference Resort in NJ
• Finger Lakes Resort and Conference Center in NY
• Fountain Hills Resort in Scottsdale, AZ
• Saucan Creek Golf Resort in Lehigh Valley, PA
• Hilton Hotel and Resort in Fairfield, CT
• Gramercy Hotel in New York City

The WorkSafe team has completed the initial security assessment for the Crowne Plaza and the Niagara Falls Conference Center.  Total cost projections, models and project plans will be created based on the scope of work for each location as determined by the site assessments.  The team is expected to conclude the recommendation and solution incorporation phase of these two initial security projects during the month of August.  When completed, under the terms of a site service agreement, the WorkSafe team will manage the implementation process and oversee the security of the properties.  About Sentry Hospitality Established in 1993 and headquartered in Manhattan, NY, Sentry Hospitality is one of the most progressive and dynamic, conference- hospitality development and management companies in the United States. The company develops and operates unique conference destinations of distinction, including four-star conference centers, golf club resorts, lifestyle communities, entertainment attractions and next generation learning centers throughout the country.  Sentry’s proven leadership, deep industry expertise, broad array of service solutions, customer-centric business approach and established elite partner network has contributed to its growing base of first-rate properties and satisfied customers.  Sentry Hospitality is one of the most active developers and managers in the hospitality industry, providing end-to-end hospitality development and management solutions from conception to completion. 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, Smithsonian Institution, San Diego Unified School District and MIT 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.   MDI Investor Relations Contact: Richard A. Larsen MDI, Incorporated Phone: (210) 582.2664 Email: Richard.Larsen@mdisecure.com   MDI Media Contact: Michael M. Garcia MDI, Incorporated Phone: (210) 477.5400 Email:Mike.Garcia@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. 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 canentify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as “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.