MDI, Inc. Reports Year End Financial Results and Announces New Business from Almana...

MDI, Inc. Reports Year End Financial Results and Announces New Business from Almana Networks Partnership

Partners Commit to Delivery of $5M in Product Orders to MDI from
Newly Staffed Office in Doha, Qatar
SAN ANTONIO--(Business Wire)--
MDI, Inc. (NASDAQ: MDII), a leading provider of unified security
solutions and construction management services today announced results
of operations and financial position for fiscal year 2007 and the
fourth quarter ended December 31, 2007. MDI has also announced the
receipt of new purchase orders and product sales estimates for 2008
from its business partnership with Almana Networks in Doha, Qatar.

Success of the MDI and Almana Networks Partnership

MDI and Almana Networks have been working together for the past
year to expand the Security, Information Technology, Communications
and Low Voltage business in Qatar. These joint business development
efforts have resulted in numerous opportunities for MDI
enterprise-class systems.

After completing a 2008 sales review meeting this month at MDI
headquarters in San Antonio, Texas, Almana Networks has committed to
purchasing $5 million in product from MDI through the balance of 2008.
Almana Networks has executed approximately 40 sales quotes for new
security projects from the newly staffed office in Doha, Qatar in the
last 60 days.

Almana Networks is also expecting to have a record year driven by
an increase in business from new opportunities in Qatar. The company
is projecting 300% growth in overall sales in 2008. "The MDI team has
brought us an increased awareness of the need for unified physical
security and video surveillance solutions in the Information
Technology space," noted Swaraj Bontula, Director of Almana Networks.
"Our clients are very technically savvy, the sales cycle is extensive
and there is much diligence involved, but MDI's deep knowledge of
convergence in the government, commercial and school security
industry, coupled with a phenomenal customer list using the ONE
Unified Technology platform make them the perfect partner for us to
move forward with in 2008 and beyond," he added.

"MDI is completely embedded in the project design and sales
process with the Almana technical team throughout the Qatar region,"
stated J. Collier Sparks, President and Chief Executive Officer of
MDI, Inc. "As with all of MDI Security System's new business
development initiatives including LearnSafe and the US Government
market, this partnership was a long-term investment for us and we are
confident that we will realize impressive revenue benefits this year.
As most of the biggest names in the security industry already know,
the acceptance of new vendors into this region is very limited and it
is extremely difficult to break into without the right partner. We
have the right partner, we have the right solution and it is the right
time for MDI to announce the success of this venture," he concluded.

MDI has received its first purchase orders of this year today as
part of a project with the Al Fardan Group. Al Fardan is one of the
largest companies in Qatar and one of the most successful in the Gulf
Region. The partnership will begin initial projects for several of the
Group's holdings, including Al Fardan Motors, Jewelry and Real Estate.
Al Fardan Motors is the largest automobile distributor in Qatar and is
the exclusive dealer for BMW, Jaguar, Range Rover, Ferrari, Maserati,
Ducati and Rolls Royce. Al Fardan Real Estate is one of the largest
land developers in Qatar.

"We have had a multitude of security vendors attempting to sell us
their point products," stated Ebrahim Mattar, Director of IT for the
Al Fardan Group. "We have chosen MDI and Almana Networks because they
offer a complete solutions approach that fits our enterprise needs
across all our holdings. The team is consulting and designing systems
with us hand in hand, which demonstrates a high project success rate
in our experience. Because of this, we are considering working with
them across the Gulf Region," he added.

2007 Financial Results From Continuing Operations

Revenues from continuing operations increased by $476 thousand, or
5%, to $9.2 million for the year ended December 31, 2007, as compared
to $8.7 million for the year ended December 31, 2006. This increase in
revenue is due mainly to revenues from FAS Construction Management,
Inc. during November and December 2007.

Gross margin remained constant at 49% for the years ended December
31, 2007 and 2006.

Selling, general and administrative expenses from continuing
operations decreased by $1 million to $9.8 million for the year ended
December 31, 2007, as compared to $10.8 million for the year ended
December 31, 2006. This decrease was primarily due to the elimination
and reduction of various operating and administrative expenses.

For the year ended December 31, 2007, the company had a net loss
of $5.1 million, or loss per allocable common share of $0.16, compared
to a net loss of $7 million, or loss per allocable common share of
$0.33, for the year ended December 31, 2006. The decrease in net loss
was primarily attributable to a decrease in operating expenses of $1
million and an increase in revenue.

Based on our current revenue run rate when combined with our
current backlog, and as a result of our continued steps to consolidate
operations, we expect to have positive operating cash flows during
2008.

A complete presentation of the Annual Results and the Management's
Discussion and Analysis is included in the Annual Report on Form 10KSB
that is being filed today with the Securities and Exchange Commission.

Almana Networks/MDI Qatar

-0-
*T
Attention: Rob Schorr
Regus Building, Office No. 7
D-Ring Road
PO Box 55802
Doha, Qatar
Office: 011-974-465-5701
Mobile: 011-974-599-1646
*T

About MDI, Inc. (NASDAQ: MDII)

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(TM)

-- FAS Construction Management(TM)

-- MDI Professional Services Group(TM) (PSG) and

-- The LearnSafe Initiative(TM)

MDI's security division currently protects over 10 million alarm
points across the globe for many of the world's most recognized
organizations including Microsoft, Bank of America, John Deere, Pepsi,
FBI, Transportation Security Agency (Homeland Security), Department of
Justice, 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.
FAS Construction Management, Inc., MDI's construction unit, provides a
broad spectrum of services to industries including food service, large
retail, industrial, religious, educational, hotel, resort, multi-story
office building, and multi-family housing developments in the United
States, Mexico, Canada and South America. MDI 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 the 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
involve 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.

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

MDI, Incorporated
Investor Relations:
Richard A. Larsen, 210-582-2664
Richard.Larsen@mdisecure.com
or
Media:
Michael M. Garcia, 210-477-5400
Mike.Garcia@mdisecure.com

Copyright Business Wire 2008