MDI and Northern Video Partner for ViewPoint System Distribution

SAN ANTONIO--Aug. 25, 2006--MDI, Inc. (NASDAQ:MDII - News), the leading manufacturer of Unified Technology solutions for the security industry and Northern Video Systems, a leading distributor of CCTV, security and low-voltage products today announced the signing of a distribution agreement to promote MDI's ViewPoint Advanced Security Link (ASL) modular digital video recording and management system with built-in access control capabilities.

Under the agreement, Northern Video will utilize its new state-of-the-art sales center, located in Rocklin, CA, as well as its other facilities in Nevada, Tennessee and New Jersey to promote the award-winning MDI system into its comprehensive customer base, comprised of tens of thousands of security dealers and low-voltage contractors across the country.

"Northern has quickly become the industry standard in sales, support and value-added system design services to the low-voltage security contractor," stated Michael M. Garcia, vice president of marketing for MDI, Inc. "Their superior business model focuses on service to the customer. The result has been phenomenal growth in a very competitive field. For MDI, this partnership allows us to enter new mainstream low voltage markets which are demanding a unified solution that is affordable and easy to install," he added.

For contractors and security dealers, this partnership offers them a source for purchasing their requirements of low-cost, high-value, all-in-one security systems from Northern Video that deliver the versatility, simplicity and affordability required to grow their business.

The MDI system combines the capabilities of enterprise-grade DVR software with optional software modules that include access control, time and attendance, point of sale and automated teller machine integration, all on one desktop-sized appliance.

The MDI product is a recent winner of the Security Industry Association's new product showcase award at ISC West 2006 for best-integrated system.

Additionally, the MDI product is the winner of Asset Protection Executive magazine's technology innovation award for 2006.

"Our partnership with MDI will allow us to grow our systems business to new levels," said Brian James, Vice President for Northern Video Systems. "As we expand our business model to meet the growing needs of our customers, unified security systems will become a large part of our comprehensive product mix. In the past, contractors have experienced purchasing barriers in delivering true integrated solutions to their small business customer base. We have broken down those barriers, and for the first time in the distribution market, dealers of all sizes will have direct access to scalable, affordable and easy to install modular systems that empower them to deliver total customer fulfillment solutions that increase profits and retain clients."

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