MDII

[setravis]

MDII shares surge on news of purchase order
SAN FRANCISCO (MarketWatch)
in Monday afternoon trade after the company said it has been awarded an initial purchase order to provide security technology and systems to track cargo and transportation worker activity between selected free trade zones and a major port within the Dominican Republic. Financial terms of the order were not disclosed. MDI was chosen by the Red Nacional De Transporte Terreste and the Dominican security integration firm ID Corp. SA. MDI added that it expects to receive "significant additional orders" to provide its technology and services to all of the ports and free trade zones in the Dominican Republic.

52wk Range: 0.35 - 1.74
Volume: 3,847,275
Avg Vol (3m): 467,632

Technicals
Record Price High
Percentage Gainer

Last Price Quote is:
58.10%above 13-day MA
125.87%above 50-day MA
RS Rating: 96 

Fundamentals
Key Data:
Market Cap (M): $38.91 
P/E Ratio: NA 
PEG Ratio: -4761.9 
Next Earnings: N/A
Last Analyst Rating: Sell

[setravis]

Press Release Source: MDI, Inc.


MDI Receives Initial Order to Provide Unified Systems for Transportation Worker Identity, Cargo Tracking & Security Network Project in the Dominican Republic
Monday April 16, 11:14 am ET 
Dominican Trade Program Will be Customized to Detect Illicit Practices and Illegal Trafficking Between Free Commerce Zones and Port Checkpoints


SAN ANTONIO--(BUSINESS WIRE)--MDI, Inc. (NASDAQ:MDII - News), the leading provider of Unified Technology(TM) solutions for the security industry, today announced that it has been awarded an initial purchase order to provide its security technology and systems to track cargo and transportation worker activity between selected free trade zones and a major port within the Dominican Republic. MDI was chosen by the Red Nacional De Transporte Terreste (RNTT) and the Dominican security integration firm ID Corp., SA to participate in this project. Once this initial order has been successfully deployed, MDI expects to receive significant additional orders to provide its security technology and professional services to all of the ports and free trade zones in the Dominican Republic.


The RNTT, or National Transportation Network, is the official Dominican trade organization and it will be overseeing the transportation and cargo security projects for ports and free commerce zones within the Dominican Republic. Properties within the RNTT project scope today handle over 85% of the nation's cargo and include 13 of the largest Free Trade Zones within the country. There are currently over 100 free trade zones in the Dominican Republic and each comprises up to 45 tenant-manufacturing organizations, which include many global blue chip manufacturing companies. The national free trade zones include over 350,000 employees and 7,000 certified vehicles.

The RNTT program will also extend to commercial organizations within the country that manufacture, process or ship products. When complete, each organization and global commercial partner within the RNTT is designed to become part of the national MDI platform, which will control multiple forms of data including photographs, fingerprints and critical ID information. The system will link partner companies and empower them to track shipment status, make necessary adjustments and perform a variety of other access, video & security related functions in real time.

ID Corp., SA is spearheading the identity & security component of RNTT, which was designed and supported in part by the Dominican Government, the US Embassy, the US Coast Guard, the World Commerce Organization and the World BASC Organization as a secure commerce project focused on cargo and chauffeur authentication and tracking. It was created to establish a trusted and automated transportation information network in support of RD-CAFTA (Republica Dominicana - Central American Free Trade Agreement), whose goal is to deliver more established infrastructures, shorter distribution routes and lower transportation costs to the United States than current trade zone locations across the world.

"MDI was the natural selection for this complex, far-reaching and very important national security project," stated Raul Flamini, President of ID Corp, SA. "No other company in the security industry has the scalability and customized capabilities required to tackle a mega-project of this size and scope. The time and cost for system modifications by other manufacturers would have made this project impossible to complete in the timeframe required. For nearly two years, MDI worked with us through each step of the sales and engineering demonstration process. Their open architecture technology has made this project a reality for us and their ability to provide custom solutions for enterprise-level projects is un-matched in the industry," he concluded.

There is great political oversight on this program from the USA, Mexico and other Latin American governments seeking similar solutions to existing trade barriers. The US Ambassador to the Dominican Republic has been one of the RNTT program's biggest endorsers, on behalf of the potential of the program to streamline trade, decrease container screening requirements and add efficiencies to total transit time and costs. It is the ambassador's goal to provide the most geographically desirable manufacturing supply chain for the United States.

"In regards to data collection and management reporting, the potential long-term scale of this program is unprecedented and could rival the largest deployments ever undertaken by any access control manufacturer in history," stated J. Collier Sparks, CEO and President of MDI, Inc. "ID Corp is a very technical and accomplished integration firm. Raul and his team are an amazing group of technicians with the capabilities to take this high-profile system wherever RNTT officials would like it to go. We look forward to working with them through both MDI Security Systems and Global Systems Solutions to make this project an international success story," he added.

About ID Corp., SA

Established in 1990, ID Corp., SA., offers security products and integration services to organizations across the Dominican Republic and Latin America. The company provides many types of integrated solutions from the world's top manufacturers including CCTV, Access Control, Identification Systems, Biometrics, Alarm Management, Time & Attendance, Electronic Walls, Detection Products and Fire Systems. For more information on the company, please visit www.idcorpsa.com.

About MDI, Inc.

MDI (NASDAQ:MDII - News) 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 and MIT to name a few. For more information on MDI or its diversified line of security products, 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. 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 "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.


Contact:
MDI, Inc., San Antonio
Investor Relations Contact:
Richard A. Larsen, 210-582-2664
[email protected]
or
Media Contact:
Michael M. Garcia, 210-477-5400
[email protected]

--------------------------------------------------------------------------------
Source: MDI, Inc.

[la-onda]

MDI, Inc. Regains Compliance with Nasdaq Minimum Bid Price Requirement
Tuesday April 17, 6:54 pm ET

SAN ANTONIO--(BUSINESS WIRE)--MDI, Inc. (Nasdaq:MDII - News) today announced that it received a letter from the Nasdaq Stock Market dated April 17, 2007 notifying the Company that the closing bid price of the Company's common stock has been at $1.00 per share or greater for at least 10 consecutive business days, and that the Company has regained compliance with the minimum bid price requirement for continued listing on the Nasdaq Stock Market.

[la-onda]

MDI and Stratis Authority's Role in Protecting our Nation's Schools Featured on ABC News Affiliate Station KSAT-12
Thursday April 19, 12:10 pm ET
Learn Safe(TM) Program Highlighted

SAN ANTONIO--(BUSINESS WIRE)--MDI, Inc. (NASDAQ:MDII - News), the leading provider of Unified Technology(TM) solutions for the security industry was highlighted yesterday in a special feature from KSAT-12 television news. The televised story focused on MDI's unique ability to deliver a state-of-the-art system to provide safety and protection for our nation's school campuses. The report centered on the comprehensive solution that MDI delivers to schools through its participation in Learn Safe(TM), a program initiated and managed by Stratis Authority. Stratis Authority and MDI have teamed together to address the needs that our schools have in providing a comprehensive solution to their security needs.

ADVERTISEMENT
As explained in the news feature, what sets the MDI system apart from others is its ability to control dangerous situations as soon as they happen by isolating a threat, thereby keeping that threat from the rest of a building or campus. The MDI system also tracks the movement of threats enabling you to know where a threat is and where the threat has been as well as which students are in proximity to the threatened location. All threats can be brought to an operator's attention because of the ability of a user to program the MDI system to their own particular needs. This is of paramount importance in today's volatile environment on our school campuses.

The bottom line is that the MDI system provides peace of mind for our schools; peace of mind for the student, peace of mind for the staff and peace of mind for the parents.

To see the KSAT-12 televised report, click the following link or cut and paste it into your web browser: http://www.ksat.com/video/12456932/index.html?taf=ant

[la-onda]

MDI Receives First Order for Strategic U.S. Naval Support Center Project in Europe
Thursday April 26, 6:52 pm ET
$1M Security Modernization Project Site to Include MDI's Unified Technology Platform

SAN ANTONIO--(BUSINESS WIRE)--MDI, Inc. (NASDAQ:MDII - News), the leading provider of Unified Technology(TM) solutions for the security industry, today announced that it has received the first of several purchase orders as the Company's part of a $1 million security modernization project for a U.S. naval support center located in Europe. MDI products were chosen by the prime contractor on this project to unify access control, alarm management and video surveillance across the naval support activity operating location.
The prime contractor is part of a multi-base agreement with this U.S. Department of Defense client to provide unified security solutions and monitoring capabilities across multiple layers including perimeters, gates, building entries, internal secure areas and service facilities. The site consists of three new housing facilities, a transient lodge, retail exchange, recreational complex, state-of-the-art gymnasium, administration facilities and multiple parking structures. MDI products are specified on each of the contractor's subsequent projects for this client.

The unique customization and configuration features of MDI's ONE(TM) Unified Technology(TM) Platform allow security personnel to manage by exception across multiple layers of protection. As an anomaly or incident takes place, the automated platform commands a series of pre-configured security events to occur, allowing security managers to command and control building, access and video surveillance functions aimed at containing or minimizing the threat. These automated functions tie in to all products that are unified within the platform, allowing for timely human decision-making and response to take place based on the level of threat to people, facilities and assets.
&

MDII: Issue Joint Statement with Stratis Addressing Recent Statements
Thursday , April 26, 2007 14:36ET

By Jay Everitt, [email protected]

MDI, Inc. (MDII) announces that it received from Stratis Authority, Inc., the Company's largest single shareholder, the attached letter addressing defamatory statements and false information that has been widely circulated over the last week about Stratis, its Learn Safe(TM) program and MDI. The Company applauds the actions being taken by Stratis and is pleased that Stratis is taking the initiative to deal with the creators and distributors of the false, malicious information.

The Company believes that the message expressed by Stratis urgently needs to be made available to all of their stakeholders, e.g. their customers, their employees, our communities and our investors - and not just to our shareholders.

To read the Stratis Authority Letter to MDI Shareholders, click the attachment or visit the following link: http://www.mdisecure.com/stratisletter.pdf?taf=ant.

[calven]

Careful guys...
http://www.citronresearch.com/index.php/2007/04/24/citron-research-reports-on-mdi-inc-nasdaqcm-mdii/

[Ares]

bougth MDII at 1.73

[Ares]

Sold at 1.76 because of my 1 minute signal and wanted to rebuy at 1.77 but was not able to go for it anymore.
I bought MDII before reading this thread.
When I saw Calven's warning, I had to exit my position when the 1 minute chart gave me a signal.
I'll try to re-evaluate this stock.
So far it seems to be uptrending in the smaller charts and there were block trades at 1.73.

Good luck with your trades.

Ares

[la-onda]

invested @ 1.75$, still holding 

MDII: Receives Orders to Provide Security Solutions within 30 Days
Wednesday, May 02, 2007 09:56ET
MDI, Inc. (MDII) announced that it has received orders to provide security solutions to be fulfilled within thirty days for three enterprise-level client organizations that include; one Fortune 500 telecommunications provider, the Arizona Supreme Court and a large Federal Government Agency located in the heart of Washington, DC. The MDI system will be used to modernize the security management processes currently used within each organization. By upgrading to the ONE(TM) Unified Technology(TM) platform, each client will command and control their organization's entire security infrastructure in real-time from a centralized dashboard environment. By seamlessly unifying a myriad of individual security offerings within an organization including access control, alarm management, video surveillance and audio monitoring, the ONE platform creates an un-matched return on security investment for MDI clients.

&

MDII: Joint Venture Agreement w/Almana Networks in Doha, Qatar
Thursday , May 03, 2007 12:55ET
MDI, Inc. (MDII) announced that it has entered into a joint venture agreement with Doha, Qatar based Almana Networks. The agreement establishes a joint venture between the two parties focused on providing unified physical and electronic security solutions, along with converged network infrastructures, to existing organizations and new construction projects in the rapidly growing country of Qatar. The new venture is currently finalizing negotiations on several security projects in Qatar, two of which it believes it will be awarded during the month of May. These multi-million dollar comprehensive projects include over one million dollars in products and services from MDI when finalized. They include securing new construction developments for a petroleum and natural gas company and securing regional holdings for a hotel chain.

&

MDI Receives Initial Order for $400,000 from Almana Networks
Friday , May 04, 2007 15:47ET
SAN ANTONIO, May 04, 2007 (BUSINESS WIRE) -- MDI, Inc. (NASDAQ:MDII), the leading provider of Unified Technology(TM) solutions for the security industry today announced that it has received an order from Almana Networks to provide security products as part of an initial integrated security surveillance project across two building locations, for a major petroleum and natural gas producer's holdings in Qatar. The amount of the order is $400,000 USD, and products are scheduled to be delivered to the client site in August of this year.
As part of the project, MDI will design and develop a complete IP based video surveillance management solution over a TCP/IP network that will provide digital video recording and management within a client-server architecture, allowing for efficient monitoring and recording in a pre-emptive security control environment. The MDI surveillance management solution will include functionality that extends beyond traditional physical security applications by providing real-time risk mitigation and operations management for the client, which is a global leader in the petroleum and natural gas industry.

&

MDII: Receives Order for US Marine Base Security System
Friday , May 04, 2007 15:06ET
MDI, Inc. (MDII) announced that it has received multiple purchase orders for products as part of a base-wide security system implementation project at a major U.S. Marine Corps base. The terms of the award prohibit disclosure of information about the specific locations, the system specifications and the assets being protected. The base will install the MDI products to upgrade its current security solution. It will allow base security personnel to manage by exception across multiple layers of protection and detection.

[setravis]

Strong downtrend stopped,
Indicators have turned north very good, MACD has crossed over center, Stochastic coming out of oversold an moving north really strong,RSI is up an crossing 65.

Breakout of this Rectangle (continuation) Pattern

Great looking move today...

52wk Range: 0.35 - 2.90
Volume: 2,540,069
Avg Vol (3m): 1,039,480

Technicals
Percentage Gainer

Last Price Quote is:
23.19%above 13-day MA
12.16%above 50-day MA
RS Rating: 6 

Fundamentals
Key Data:
Market Cap (M): $39.48 
P/E Ratio: NA 
PEG Ratio: -4761.9 
Next Earnings: N/A
Last Analyst Rating: Sell

[setravis]

Press Release Source: MDI, Incorporated


MDI and Nortel to Promote Unified Security Products, Services and Converged Network Solutions to the Global Security Market
Tuesday June 19, 9:00 am ET 
Plan to Offer MDI Products Through Nortel Channels and Nortel Solutions via Learn Safe(TM) Program


SAN ANTONIO--(BUSINESS WIRE)--MDI, Inc. (NASDAQ:MDII - News), the leading provider of Unified Technology(TM) solutions for the security industry, and Nortel(TM) have entered into a business agreement designed to promote Nortel's comprehensive network communications and information security solutions together with MDI's unified security technology solutions across multiple vertical markets.
Nortel will leverage existing global sales channels and business development resources to promote the MDI product line. Nortel is the exclusive systems integrator for the Learn Safe(TM) school safety and security program, providing best-in-class technology products and services focused on network infrastructure, information security, Internet content management and wireless communications. These offerings leverage Nortel's extensive networking expertise to provide an edge in effectively combating threats to network and information integrity.

The primary channel focus will include:

Large enterprise commercial accounts
Major technology distribution markets
Turnkey bundled technology packages combining Nortel VoIP and wireless mesh products with MDI's Unified Security Solutions
K-12 schools
"This relationship immediately expands Nortel's market capabilities in the security industry by bringing in the MDI platform as part of the Nortel solutions portfolio," said Rod Wallace, general manager, Security Solutions, Nortel. "Our plan includes bundling the MDI product suite with our networking packages to provide a one-stop shop for our small business client base, most of whom purchase through high volume distribution channels."

The Learn Safe program offers a variety of security core competencies to educational institutions across the United States. The program identifies problems faced by teachers and administrators in a format that is tailored to each locality and strives to minimize the visible infrastructure usually associated with traditional high-security systems (i.e., detectors, physical screening and armed security officers). The program's goal is to empower school administrators and teachers with an integrated suite of tools to support their current security requirements while assisting staff members in minimizing risks by identifying security threats in time to prevent future incidents.

"Nortel is a proven technology leader that will provide critical network and security components in the successful deployment of the Learn Safe program," stated J. Collier Sparks, President and CEO of MDI, Inc. "I believe this relationship will accomplish three immediate goals: first, it will set the standard for convergence over wireless networks in the security industry. Second, it will give our school district clients the remote visualization needed to take control of the safety and security of their campuses in a cost-effective manner. Third, it will deliver established sales channels that can successfully take the MDI solution to the global marketplace. This is a "first of its kind" project in the security industry and we are happy to have Nortel working with us to make history," he concluded.

About MDI, Inc.

MDI (NASDAQ:MDII - News) 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 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.

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 can identify 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.

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


Contact:
MDI, Incorporated, San Antonio
Investor Relations Contact:
Richard A. Larsen, 210-582-2664
[email protected]
or
Media Contact:
Michael M. Garcia, 210-477-5400
[email protected]

--------------------------------------------------------------------------------
Source: MDI, Incorporated

[setravis]

Fundamental news has been positive of late, hopefully the company will turn this into positive financial results in the next year.

52wk Range: 0.35 - 2.90
Volume: 1,316,632
Avg Vol (3m): 522,378

Technicals
Close Above the 50-day MA
MACD - Bullish
Percentage Gainer

Last Price Quote is:
19.99%above 13-day MA
9.08%above 50-day MA
RS Rating: 3 

Fundamentals
Key Data:
Market Cap (M): $28.56 
P/E Ratio: NA 
PEG Ratio: -4761.9 
Next Earnings: N/A
Last Analyst Rating: Sell

[setravis]

Pre-market mover.......

MDI INC (NasdaqCM:MDII)   

Pre-Market: @ 0.83  +0.18 or (+27.69%) as of 8:20AM ET on 11/13/07


Yesterday's closing chart........

[la-onda]

fyi:
MDI, Inc., CEO and President J. Collier Sparks Releases State of the Company Address
Tuesday , November 13, 2007 08:00ET

SAN ANTONIO, Nov 13, 2007 (BUSINESS WIRE) -- J. Collier Sparks, CEO and President of MDI, Inc., (NASDAQ:MDII) today released a state of the company address to all MDI Shareholders and Stakeholders. The address reads as follows:

Let me begin by stating that I am very bullish on the future of MDI. It is my opinion that the company has never been in a better position to execute. For the past four months, we have been structuring the company and its sales initiatives in preparation for what we feel will be a very successful 2008. Unlike past years, which were driven by change, reorganization, rebuilding and reengineering, this year, we have positioned the company to a point where every department is now able to focus on successfully generating revenue. By making the decision earlier this year to diversify our corporate infrastructure, we have been able to generate strong revenue results and build our corporate assets in a very short period of time.

As a result of this diversification, MDI's 2007 Fourth Quarter revenue number is expected to exceed $50 million, which is nearly double the 2007 revenue projection figure announced in a release during March of this year. At a minimum, we expect to deliver similar revenue volume for each quarter throughout 2008.

We have been working very hard this year to make our corporate diversification plan a reality. With the purchase of FAS Construction and the new MDI building, we feel that success is now achievable. As a holding company, MDI's focus on diversifying its business units, with the ability to link them back together based on individual deal structure is truly exciting. In the past, as a pure play security company, MDI was unable to reach out and map the course of the deal. Now, as a unified group of companies focused on end-to-end solutions in diversified but complimentary markets, we can begin work on building strong revenue numbers and future shareholder value in markets that compliment our capabilities such as:

-- Information Technology
-- Wireless Security and Convergence
-- New Building Construction Management
-- Contracting
-- Building Renovation
-- Real Estate Investment
-- Design and Construction of "Secure Buildings"
-- Comprehensive Security Consulting
-- Professional and Field Engineering Services

It is our plan to continue to acquire complimentary business offerings throughout next year. We will utilize our company's stock wisely and invest it as currency in strategic transactions to build shareholder value for the long term. As we continue forward, I feel that we have the right people, operational processes and technology in place to make a positive difference. In my previous letter to shareholders dated July 24, 2007, I addressed seven matters that I felt would be of interest to our shareholders. Today, I feel that it is appropriate to provide an update on those matters and introduce several new topics for discussion.

1. FAS Construction Management, Inc. - As we announced on October 22, 2007, we purchased FAS Construction Management, Inc. in exchange for 5,000,000 shares of MDI, Inc. Allow me to tell you what a triumph this deal was for MDI. Besides diversifying its holdings and increasing the scalability of its service capability, based on the application of revenue recognition guidance in EITF 99-19, the company will now add in excess of $50 million to its revenue in the fourth quarter 2007. Based on current assumptions, we expect that revenue in each quarter of 2008 will be of the same magnitude, or greater, than for Q4 2007.

FAS brings a predictable base of revenue from which we believe there are many opportunities for growth. Historically, the primary focus of FAS has been to provide construction risk management services on behalf of lending institutions. Under the continued management of Bill Wurzbach, President of FAS, I believe our business in the construction market can be diversified and increased. We intend to pursue a dedicated sales focus towards this growth during 2008.

The acquisition of FAS has allowed MDI to diversify its revenue sources and provides synergistic corporate opportunities at the same time. We expect to bring new construction projects into FAS, which will include assignments as general contractor and construction management at risk. FAS involvement enhances the breadth of services provided through LearnSafe to school district clients. The FAS Construction team will continue supporting LearnSafe(TM) by spearheading school district risk audit and site assessment teams. FAS will also continue providing comprehensive program management services to MDI as it moves forward, focusing on the concept and creation of LearnSafe Certified(TM) Safe and Secure School Buildings(TM) in the future.

To take full advantage of this new diversification and to allow senior management to focus on the continued growth of MDI, we are organizing the company into four operational business units which include MDI Security Systems, FAS Construction, LearnSafe and the Professional Services Group (PSG). MDI, Inc. is the holding company and will provide shared support services to the underlying business units. I will continue to lead the executive team as President and CEO. Mike Sweet, COO, CFO, and Senior Vice President will continue to provide operational guidance for all divisions as well as financial oversight for the company. Richard Larsen, General Counsel, Secretary and Senior Vice President will continue in that role as Chief Legal Officer with MDI, Inc. Michael Garcia, Senior Vice President of Sales and Marketing, will provide leadership for those two critical functions to all four corporate divisions and maintain interim responsibility for the LearnSafe(TM) division.

Tim Rohrbach, CTO, CIO and Vice President, will continue to manage technology, product engineering and infrastructure for all divisions but will now assume overall P&L responsibility for the MDI Security Systems business. Fred Konnerth, Vice President of Operations, will have P&L responsibility for the Professional Services Group. Bill Wurzbach, President of FAS Construction Management, will continue to manage the construction division.

2. The LearnSafe Initiative(TM) - As stated before, the LearnSafe Initiative is now one of four distinct lines of business at MDI, Inc., joining MDI Security Systems business, FAS Construction and our Professional Services Group as a unique member of the MDI family.

Our market focus for LearnSafe over the last three months has been set on gaining acceptance at the highest levels with State and Regional education decision makers, while continuing to promote the Initiative at the district level. As opposed to past approaches, our sales efforts are now extremely targeted, customized and controlled. As a result of this, our program's sales cycle has been extended by several months. However, with this new focus, we expect to gain considerably more market share across a shorter period of time in aggregate.

Our new strategy has led to a tremendous increase in sole sourced proposals to large school districts and state funded educational security initiatives. I am extremely happy to report that the LearnSafe proposal pipeline for multi-year program engagements currently stands at well over $1 billion dollars and we are working diligently in a team environment to close this business. As you can see, our goals for the program are lofty but the possible rewards in 2008 may become tremendous. Our ultimate goal is to build the LearnSafe Initiative into the de-facto standard for comprehensive school safety and security programs in the United States.

As we move forward, we will continue to enhance our business relationship with The Cooperative Purchasing Network (TCPN) (www.tcpn.org), the major Regional Education Service Centers in Texas and forward-thinking educational support organizations such as the Mexican American School Board Association, which, I am happy to report, has just endorsed the LearnSafe Initiative as its preferred school safety and security solution. This is a huge milestone for LearnSafe and we will release more specific details on this partnership next week.

We are continuing to promote the value of LearnSafe to administrator-level school district decision makers at every turn. We have just returned from presenting at two very successful TCPN Regional Superintendent Leadership conferences in Orlando, FL and Central Texas. The LearnSafe and TCPN partnership, designed to provide affordable risk audits to Texas school district to assist them in complying with State Senate Bill 11 is progressing very well. We currently have numerous schools in process and will continue to try and bring those schools into the LearnSafe program.

This week, the LearnSafe Team is sponsoring the Texas School Administrators Safety Conference, which is organized by the Texas School Safety Center. Texas Attorney General Greg Abbott will be the guest speaker with several hundred school security administrators in attendance. As mentioned last month, LearnSafe founded the first ever Texas Safe Schools Week, in coordination with National Safe Schools Week, which is held every year from October 21 - 27. Texas Governor Rick Perry has officially proclaimed this date as Texas Safe Schools Week and you can rest assured that LearnSafe will be working with multiple organizations next year to promote its statewide charter.

To conclude this section, I would like to note that next month, LearnSafe will be the sole sponsor at a special superintendent's conference in Austin. Held by the Texas Association of School Boards (TASB), this first ever conference will unite superintendents from the fifty largest school districts in the state to discuss security issues facing their schools. LearnSafe (Nortel, ASSA ABLOY, SBS Group, MDI) will be the only "vendor" in attendance.

3. Stratis Authority Issues - I will combine several of the matters that were discussed in my address last July here. Let me start by stating that to our knowledge there are no issues open between MDI and Stratis. The LearnSafe Initiative, post Stratis, immediately established relationships with a strong group of advisors in educational financing, political consulting and student safety such as: (i) Dr. Adam L. Saenz, Ph.D., the managing partner of The SBS Group; (ii) Hollis Rutledge, Jr., managing partner of Hollis Rutledge and Associates, Inc.; (iii) Delta Consultants International and (iv) Alfonso Herrera, an authority on gang violence and behavior modification and CEO of Herrera and Associates. The result of these relationships was that LearnSafe no longer had the need for the continuous services of the former Board of Advisors or for the services of Jim Vandevere or Kellie Tomeo, who both left the company in October.

4. MDI Building Ownership - As announced on October 8, 2007, for 3.3 million shares of the company, MDI purchased all of the shares of STC Holdings, Inc. from Ridgemont Investment Group, LLC. These 3.3 million shares are part of the 5.3 million shares that Stratis Authority agreed to purchase from the company last January, but were unable to. The only asset of STC is the property at 10226 San Pedro Avenue in San Antonio where MDI has its corporate offices. MDI currently occupies approximately 16,000 square feet of completely remodeled space in the main building facing San Pedro Avenue.

We plan to remodel the remaining 16,000 square feet in that building to house our new central station monitoring business in 2008. This new managed security services offering will begin as a component of the LearnSafe Initiative. Our goal is to manage all video surveillance and alarm monitoring for our school district clients. Although this is a new venture, it is not a new capability. Some of you may remember that MDI originally stood for Monitor Dynamics, Inc. and that our SAFEnet(R) centralized command and control software is UL Certified as a central station solution. LearnSafe has provided us with a market opportunity to establish our own capability in the same fashion as we have successfully provided it for enterprise organizations across the world for so many years.

FAS currently occupies the entire 18,000 square feet in an adjoining plantation style building located next to MDI Security Systems and will continue to do so. The purchase of the STC shares required that we assume the obligations under a $5.5 million note, the proceeds of which were originally used to purchase the property and to make improvements to the buildings. The note is non-recourse to MDI or to STC, being secured only by the property.

We are also considering making additional investments in land and real estate for MDI, Inc. in the future.

5. Federal Government Business - Under the new leadership of Tim Rohrbach, and in preparation for a new year in 2008, we will be investing a considerable amount of time in our nation's capital selling federal government projects for the installation and maintenance of our security systems. As previously announced, we have added former Homeland Security Official Justin Oberman to the MDI sales management team to lead the charge. Justin, a former Assistant Director of the Transportation Security Administration, is an expert in identity and credentialing for Government. He will be working with MDI to develop new business within the D.C. Beltway, primarily focused on HSPD-12 and FIPS 201 integration initiatives.

We are also happy to announce that we have inked a deal with a premier contract government sales force in the D.C. area to develop business for our products within the Federal Civilian Government and Department of Defense. Under Justin's oversight, and taking advantage of his contacts at the highest levels of U.S. Government security, we have now launched a multi-tiered professional sales, marketing and sales support force currently closing hundreds of millions of dollars in Government business for clients each year. This organization brings to MDI:

-- An established network of IT and Security decision makers in the Government market
-- Years of trust as technical solution providers for these Government decision makers
-- A seasoned proposal and sales process management team
-- A seasoned telemarketing and Internet marketing team
-- New sales offices for MDI business, centrally located in Tyson's Corner, VA
-- Dedicated conference and product demo staging areas, enabling us to develop significant new business in the Federal Sector
-- New relationships with best-in-class IT, Information Security, IP Video Surveillance and Physical Security companies that can pull MDI solutions into existing omnibus contracts
-- New relationships with large Government contractors, designed to win significant multi-year deals based on MDI's past performance in high-security classified environments

To enhance and add value to our new Government sales initiatives, we will be using a number of our existing D.C. area customers as real-time live demo sights for prospective clients who are new to MDI. We will also be announcing partnerships with some of the most well known companies in the Security and IT industry soon to combine forces in selling targeted deals with unified physical security and HSPD-12 components to Federal Government Agencies.

Besides new Government initiatives, Justin will bridge his team with the high margin MDI legacy system upgrade business. By teaming with long-time MDI sales executive Jim St. Pierre, Justin will have a direct line to all MDI Government business development initiatives.

To conclude this section, I would like to mention that we will utilize well known political fundraiser, political consultant and lobbyist Hollis Rutledge, of Hollis Rutledge and Associates, Inc. to assist us in our task of winning back the Washington, D.C. Beltway. As former Director of the Government Services Administration (GSA) and numerous other Presidential appointments over the past 20 years, Mr. Rutledge and his organization's network will soon prove to be a valuable asset to MDI and its partners.

6. Nasdaq Bid Price Deficiency Letter - The company received a letter on November 7, 2007 from The Nasdaq Stock Market stating that the Company is not in compliance with the minimum $1.00 per share requirement for continued inclusion under Marketplace Rule 4310(c)(4).

The Company will be provided 180 calendar days, or until May 5, 2008, to regain compliance.

If, at anytime before May 5, 2008, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Nasdaq will provide written notification that to the company that it has achieved compliance with the Rule. If the company is not in compliance with the Rule by May 5, 2008, the Nasdaq will determine if the company is in compliance with the Nasdaq Capital Market initial listing requirements. If it is, Nasdaq will notify the company that it has been granted an additional 180 calendar day compliance period. The company is currently in compliance with all Nasdaq listing requirements, except for the minimum bid price requirement.

7. Third Quarter Financial Results - Financial results for the third quarter ended September 30, 2007, are as follows (Please note - FAS Construction Management is not included in these results):

Although total revenue for the third quarter of 2007 was basically flat at $1.843 million compared to $1.933 million for the third quarter of 2006, the cost management measures which we implemented earlier this year continued to position us for attainment of our profitability goals in the near future. Expressed in dollars, gross profit increased $81 thousand during the third quarter 2007 compared to the third quarter 2006, taking gross profit margins from 52 percent to 59 percent. Selling, general and administrative expenses decreased by $118 thousand in the third quarter of 2007 compared to the third quarter of 2006, reflecting our efforts to reduce costs. In the third quarter 2007, net loss decreased $791 thousand to $946 thousand compared to a loss of $1.737 million for the third quarter 2006. Cash and cash equivalents at September 30, 2007 totaled $1.969 million compared to $2.850 million at the end of the second quarter 2007.

8. Future Cost Savings - During October 2007, the company decided to terminate several non-revenue producing positions within the company. These positions were not located at its corporate headquarters. The reductions are expected to yield approximately $1 million in direct savings on an annualized basis.

In closing, I would like to stress that as a company, we remain driven to produce revenue channels that we can build on for the future. We plan to achieve this by growing revenue at FAS Construction while continuing to develop our targeted high margin sales initiatives within LearnSafe, the Federal Government and upgrades to our current legacy customer base. I hope you all can see why I am bullish on MDI. I am more certain now than ever before that 2008 will be the most successful revenue year in the history of the company. Thank you once again for your continued support.

Sincerely,

J. Collier Sparks

CEO & President

MDI, Inc.

[la-onda]

fyi:
MDI, Inc. Poises Organization for Rapid Growth in Construction and Real Estate Arenas
Friday February 15, 10:45 am ET
Strategic Realignment of Key Executives Includes Appointment of Chief Financial Officer and Issuance of Inducement Grants

SAN ANTONIO--(BUSINESS WIRE)--MDI, Inc. (Nasdaq: MDII - News). With a focus on rapid expansion of its construction management, contractor and real estate investment activities, MDI today announced the realignment of its executive management team leveraging its operational strength and experience to maximize the expected rapid growth of the Company's construction management, contractor and real estate investment activities.

The new management structure includes the dedication of Michael Sweet to the development and growth of the Company's construction management and contractor activities. For the last year, Mr. Sweet has been performing the function of Chief Operating Officer and Chief Financial Officer, reporting directly to President and CEO, Collier Sparks. Under the realigned organization, Mr. Sweet will function exclusively as the Chief Operating Officer and Lori Jones has been hired as the Company's new Senior Vice President and Chief Financial Officer.

As Chief Operating Officer, Mr. Sweet will dedicate his time and talent to expanding the Company's construction management, contractor and real estate operations in the United States and in Mexico as the Company continues its rapid growth in managing construction-related projects and performing the function of a general contractor on and systems integrator for large construction projects. In October 2007, the Company purchased FAS Construction Management, Inc. and Mr. Sweet will be directly responsible for working with the management at FAS to grow that business significantly in 2008. Additionally, the Company expects to be awarded more projects of the size and scope as the Staybridge Suites Hotel construction project where the Company has been selected as the general contractor for the construction of a Staybridge Suites Hotel in San Antonio valued at approximately $11 million. In addition, the Company's Professional Services Group will provide the security and low voltage systems for the hotel. Construction is scheduled to begin next month upon completion of permitting activities.

"Sweet's exclusive function as Chief Operating Officer is the natural next step in MDI's growth as a company providing construction management and contractor services. His proven expertise in these areas will be invaluable as the Company continues on pace to expand its growth in the construction and real estate investment arenas," commented Collier Sparks. "This is an important strategic decision that will optimize operations as we continue our growth around."

Over the next three months the Company expects to enter into several large construction or real estate projects. Details will be provided as the Company consummates a transaction.

Other Key Executive Appointments

As part of the realignment, other key appointments include the appointment of Lori A. Jones as Senior Vice President and Chief Financial Officer. Ms. Jones reports to MDI President and CEO J. Collier Sparks, and will serve as an integral member of the company's management team. In this new role, Ms. Jones will be responsible for all of MDI's finance and accounting functions.

"Lori brings to MDI significant experience in both financial management and strategic business planning and a successful track record of managing finance and accounting functions in public and private companies," said Collier Sparks.

Ms. Jones served as Chief Executive Officer and acting Chief Financial Officer of Analytical Surveys, Inc. a publicly held energy company. She served as the Analytical Surveys' Chief Financial Officer from January 2003 until December 2004, when she assumed the position of CEO. From March 2001 to January 2003, Ms. Jones was a partner with Tatum CFO Partners LLP., a financial consulting company, where she provided senior financial advice to both small and medium-size firms. Prior to Tatum CFO Partners LLP, Ms. Jones served as chief financial officer of Billserv, Inc. Ms. Jones is a C.P.A. and holds a M.B.A. from the University of Texas at San Antonio.

Also today, MDI awarded to Lori Jones an inducement grant pursuant to her employment agreement, dated February 4, 2008. 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 inducement grant consists of an option to purchase 400,000 shares of MDI's common stock. The option has a five-year term and an exercise price equal to $0.44. The option vests as follows: 12 ½ % shall vest on April 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. Additional information about the terms of the inducement grant can be found in MDI's report on Form 8-K filed today with the Securities and Exchange Commission.

About MDI, Inc. (NASDAQ: MDII - News)

MDI, Inc., companies deliver security technology products, services and training for high-security government, commercial and educational markets as well as comprehensive construction management solutions on an international scale. MDI companies include:

    * MDI Security Systems™
    * FAS Construction Management™
    * MDI Professional Services Group™ (PSG) and
    * The LearnSafe Initiative™

For more information on MDI or its diversified line of products and professional services, please visit www.mdisecure.com.