MDI Security Systems Announces $750K in Enterprise Customer Upgrade Contracts for Award-Winning SAFEnet Solution

SAN ANTONIO, TEXAS – MDI, Inc. (NASDAQ: MDII) – April 26, 2005, MDI Security Systems, the foundation of MDI, Inc., today announced that it has received contracts to upgrade the security systems for 10 of its long-standing enterprise customers. The initial awards will total approximately $750,000 in revenue to the Company when completed. Because many of the security systems are installed at classified facilities, the Company may provide details of the specific awards at a later date, only as permitted. Scheduled customers include highly classified Government facilities within the Department of Defense, Department of Homeland Security, various Federal Civilian Agencies and several large enterprise commercial customers.

These upgrades are scheduled to be accomplished during the next 3 months. When completed, these MDI customers will have installed the complete feature set within SAFEnet Version 6.2.

Each potential customer project will involve a legacy upgrade to the latest SAFEnet version, with its Open System Integration (OSI) Platform. The Company expects that many additional facilities will follow this initiative with a hardware modernization program involving MDI’s PB2000 Advanced Processing Technology or Integrated Digital Controller (IDC) IP-enabled hardware. The average investment price per customer upgrade will vary depending on the size and scope of each project, but initial estimates by MDI are estimated at $100,000 dollars per engagement.

In further fulfillment of the company’s successful customer upgrade strategy, which was announced late last year during the company’s re-structuring phase, J. Collier Sparks, CEO and President of MDI, has formed a special technical task force. This group, headed by Tim Rohrbach, Vice President and Chief Technology Officer, will continue to focus on migrating a list of hundreds of current MDI SAFEnet legacy customer sites over the next several months. Under Mr. Rohrbach’s direction, SAFEnet v6.2 has been thoroughly field-tested over the last 6 months during successful client field trials, allowing for final implementation plans for these long-anticipated migrations.

“Our ALERT Team (Advanced Logic Engineering & Research Team) has worked hard to make sure that all MDI legacy customers are able to migrate to the latest version of SAFEnet as seamlessly as possible,” stated Mr. Rohrbach. “In 2004, while re-structuring and re-locating the company, we made a decision to limit the sales of SAFEnet while Engineering resolved all known issues to the product that had been developed under the old Ultrak brand. Today, after all of our efforts and associated costs, I am proud to say that our investment is paying off as 2005 is poised to be banner year for MDI and it’s loyal SAFEnet customer base,” he added.

At the ISC West Show in Las Vegas earlier this month, the SAFEnet Integrated Security and System Management Solution was awarded the Integrated Physical Security Product of the Year Award for 2005 from Network Defense and Product News, a Government Security News Publication. The complete printed article is available in the May issue of Government Security News Magazine, or electronically by visiting

About MDI Security Systems
For over 25 years, MDI (NASDAQ: MDII) has been protecting clients across the globe by delivering the most innovative and dependable integrated security management solutions available. As a security industry pioneer and recognized leader in advanced security research, MDI continues to deliver value to its stakeholders through the development of market-driven, technically superior integrated security systems that can be comprehensively managed from a centralized point of command, contain and control. The MDI product family currently protects over 10 million alarm points around the world including many of the world’s most secure government facilities, financial institutions, healthcare organizations, manufacturing companies, energy and power providers, gaming and entertainment establishments, educational institutions and Fortune-ranked corporations. For more information on MDI Security Systems, please visit

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.

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