SAN ANTONIO -- MDI Security Systems, a division of MDI Inc. (NASDAQ:MDII) and leading manufacturer of unified security software, hardware and video solutions, today announced that it has been chosen by Palmer Electric Inc. and Electro-Tech Inc. of Colorado Springs, CO., to provide Unified Security Solutions to the United States Air Force Academy (USAFA). Palmer Electric (Palmer) contracts under Multimax Inc., one of four small business contractors under the NETCENTS Network-Centric Information Technology contract.

NETCENTS is a five-year, $9 billion, IDIQ (Indefinite-Delivery, Indefinite-Quantity) contract that was established to provide Air Force (at all levels), Department of Defense and other Federal Agencies a primary source of networking equipment/product supply and systems engineering, installation, integration, operations, and maintenance services.

With a reputation for providing superior quality and customer service and an extensive history in providing solutions to military customers, Palmer has been working with the Air Force in the Colorado Springs area for over 20 years. In addition to the USAFA, their customers include Fort Carson Army Base, Cheyenne Mountain Air Station (NORAD), Schriever Air Force Base and Buckley Air Force Base.

"We researched many manufacturers for this project and SAFEnet, built on ONE Unified Technology from MDI, offered exactly what the Air Force Academy needed -- a state-of-the-art open architecture command and control solution that's easy to customize and that offers unlimited expansion capabilities," said Cary Gulsby, Access Control Project Manager at Palmer Electric. "There is no stronger unified access control product available on the planet that can match MDI's seamless integration capabilities. MDI's sales support function, superior engineering team and third-generation unified technology gave us the competitive edge to win the Air Force Academy contract. Our plan is to exclusively utilize SAFEnet and the entire MDI product line as the foundation for all of our existing and future integrated system projects," he added.

The MDI solution will replace the USAFA's current integrated system, which was not capable of meeting their current and future comprehensive security requirements.

"We are proud to be partnering with the Palmer team on this state-of-the-art integrated systems project," stated J. Collier Sparks, President and CEO of MDI Inc. "Critical security projects such as these truly validate MDI's ONE Unified Technology platform as the most innovative third-generation solution in the industry with the highest investment value to the customer. Coupled with Palmer's customer-centric business model, the USAFA could not have chosen a better team to replace their second-generation solution," he added.

About Palmer Electric Inc.

Palmer Electric is a woman-owned business that has been operating in Colorado Springs for 22 years and is the parent company of Electro-Tech Inc. (www.electro-techsolutions.com). Since then, they have been performing contract work with the United States Government and have always provided quality craftsmanship while working hand-in-hand with the military to meet their specific needs. Palmer has completed various projects at a variety of military bases and key customer sites including: United States Air Force Academy, Peterson Air Force Base, Schriever Air Force Base, Fort Carson, and NORAD, El Paso County, City of Colorado Springs, Colorado Springs Utilities, State of Colorado, and other state-funded construction projects including school districts. For more information on Palmer Electric, please visit www.palmerelectric.net.

About MDI Inc.

MDI (NASDAQ:MDII) manufactures security software, hardware and video solutions designed to protect people, facilities and assets. These products and solutions are united 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, 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. 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.