MDI Receives UL 1076 and UL 294 Compliance for Award-Winning SAFEnet Integrated Security & Systems Management Software and IDC Hardware

SAN ANTONIO, TEXAS – May 17, 2005 – MDI Security Systems, the foundation of MDI, Inc. (NASDAQ: MDII), a recognized leader in delivering open, integrated security systems management and video security solutions, today announced it has received a Notice of Authorization from Underwriters Laboratories (UL) for UL-1076 (proprietary burglar alarm units and intrusion detection systems) and UL-294 (access control system units) for its latest version of SAFEnet® software (6.2). Earlier this year, MDI received the Notice of Authorization for UL 1981 (central-station automation systems) and was the first security manufacturer in the industry to certify their proprietary advanced encryption algorithm (under UL 1076) with the National Institute of Standards and Technology (NIST).

By earning these highly-demanded UL Certifications (1076, 294 and 1981) on both its software and hardware, MDI can deliver the system necessary for its clients to obtain UL 2050 Certification by meeting the facility site certification requirements necessary for this coveted designation. There are a limited number of enterprise-class integrated security solutions that can offer this capability today, making SAFEnet the clear choice for UL 2050 Certified Providers (Integrators) and those security-minded organizations seeking a UL 2050 Certified facility.

“MDI has worked closely with UL for over 25 years and this marks an important and distinguished honor to continue using the UL marking on our latest SAFEnet software and IDC door control hardware. This designation provides our dealers and integrators with a unique competitive advantage in both the enterprise commercial and government markets.” stated Jim Lowder, Vice President of Engineering for MDI. “Our Advanced Logic Engineering and Research Team (ALERT) has worked diligently to meet the strict interpretations and stringent requirements of both UL and NIST, which is a testament to our stakeholders that MDI ensures the highest standards of security engineering in the manufacturing of industry-leading products.”

These certifications open the door for MDI Security Solutions Partners to service additional markets that they may not have previously been able to before (with un-certified products). Once a security and alarm company goes through the UL Listing evaluation, they are then eligible to issue certificates on systems installed at protected sites. The US Department of Defense is one of many highly classified and protected sites within the Federal Government that realizes the importance of UL certification from company’s such as MDI, as a high level of quality assurance and system reliability. In order for many of these classified facilities to maintain a high level of security, they are required to have systems installed, serviced, maintained and monitored in accordance with UL standards. With the UL approvals and the NIST approved encryption embedded into the IDC hardware, MDI is able to provide an extremely cost effective, highly secure solution to meet site certification requirements needed by the world’s most secure facilities.

The company’s SAFEnet software and IP-based IDC hardware solution provides the centralized, open infrastructure, platform required to secure an enterprise from a single point-and-click desktop application. This integrated security dashboard empowers both distributed enterprises and small to medium sized businesses to successfully manage the overwhelming volume of security events by consistently reducing response time, allowing them to effectively protect their people, facilities and assets.

MDI currently has several certifications pending for both the iTRUSTâ„? integrated security management solution (for small to medium sized organizations) and the PB 2000 product, which bridges legacy hardware to the current SAFEnet software, allowing for seamless and cost-effective customer upgrades. The company will be previewing its entire product portfolio in booth #1718 at the upcoming GOVSEC government security conference in Washington, DC, on May 25 – 26th, 2005.

About MDI Security Systems

For over 25 years, MDI (NASDAQ: MDII) has been protecting clients across the globe by manufacturing 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 thousands of customers 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 including its SAFEnet, iTRUST, ViewPoint and nTEGRITY product lines, 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.

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