MDI Security Systems Launches VerifEye IVS(TM) Intelligent Video Security Software.

SAN ANTONIO -- VerifEye Delivers Real-Time Situational Awareness, Layered Intelligence, Post Event Analysis and Increased Surveillance Efficiencies through Automation

MDI Security Systems, a subsidiary of MDI, Inc. (NASDAQ:MDII), today announced the availability of their VerifEye IVS automated video data analysis and intelligent object recognition software. VerifEye is available for immediate delivery as a stand-alone software application, as part of the MDI VIEWpoint network video management solution or as an integration module into the MDI SAFEnet Open Systems Integration Platform. It provides automated real-time object tracking and identification, smart motion analysis, video intelligence extraction (from analog or digital streams of live or stored video) and customizable alert reporting when exceptions occur.

VerifEye detects, identifies, recognizes, classifies and tracks objects as they appear into a camera's field of view. It then immediately generates alarms or triggers alerts based on customized events established by the user. Alert information includes, but is not limited to, event type, priority, object type, object ID, color, size, position, speed, location, time, direction and distinct behavior. Flexible output and alerting capabilities include:

--Output relay I/O and contact closures

--XML and IP messaging

--LAN or USB outputs

--Email, Pager, PDA or Phone alerts

--Output to databases, files or XML formats

--External systems integration using IP, XML and ODBC standards

--Customizable reporting structure

"The unmatched layered-intelligence capabilities of VerifEye increase the productivity and efficiency of today's video surveillance systems by converting conventional reactive processes into automated, proactive intervention," stated Collier Sparks, President and Chief Executive Officer of MDI, Inc. "Whether implemented on its own, or integrated as a solutions module into the SAFEnet(R) OSI Platform, VerifEye delivers an immediate return on investment to our client base. It reduces the need for additional security personnel, increases operational efficiencies in retail and business environments (trend spotting) and eliminates false alarms caused by irrelevant events," he added.

VerifEye was designed to make use of the data produced by the camera as it happens and therefore works with a variety of analog, digital and network cameras, including the entire VIEWpoint 20/20 line from MDI. It can accept raw uncompressed video or MPG1, MPG4, MJPG, H263 and AVI formats. The system can be deployed at either the front-edge of the security network with the camera and DVR, or at the backend behind the network or Internet.

The standard VerifEye IVS package offers the following features and capabilities:

--People and Vehicle Tracking

--Motion and Behavior Analysis

--Facial Detection

--Perimeter Monitoring

--Intrusion Detection & Secure Area Monitoring

--Unattended or Abandoned Object Detection

--Asset Protection & Object Removal

--Anti-Tailgating and Anti-Piggybacking

--Object Counting & Statistical Reporting

--Entry & Exit Directional Monitoring

--Object Detection, Classification and Pattern Recognition

--Automated Self-Learning

--GPS and Port GIS Mapping

--Multiple Camera Tracking

--Dynamic Report Generation

--Utilization of Infrared and Thermal Cameras

--Video Stabilization

--Automated 24/7 Video Monitoring with Real-Time Alerts

--High-Tech Filters that Exclude Natural Background and Irrelevant Objects

Advanced intelligent add-on options for VerifEye IVS include:

MotionEye - A powerfully superior video motion detector. It is an excellent enhancement option to all Digital Video Recorders, security systems and sensors. MotionEye far outweighs the basic built-in features found in cameras and DVRs.

TrackerEye - A sophisticated technology that automatically tracks objects with Pan/Tilt/Zoom (PTZ) cameras and eliminates the manual control process by automatically following and tracking objects. In complex situations, TrackerEye makes intelligent decisions based on threat levels and distances; tracking targets until completely out of the camera's field of view.

IntrusionEye - A state-of-the-art video based solution to anti-tailgating, anti-piggybacking and anti-passback. IntrusionEye directly addresses the long-standing problem of "access bypass" faced by the security industry. It ensures compliance with access control procedures via video verification and can easily be added on to most systems, including MDI's award-winning SAFEnet and iTRUST integrated solutions.

Pricing and Availability

VerifEye is available for immediate shipment to meet a variety of Government and commercial applications including Retail, Financial, Gaming, and Transportation. For pricing information, please call MDI Inside Sales at 866-435-7634 or email [e-mail]. For an online product demonstration, please visit the MDI website.

About MDI, Inc.

For over 25 years, MDI (NASDAQ:MDII) has been protecting its clients' people, facilities and assets by manufacturing advanced integrated security software and video surveillance solutions that can be comprehensively managed across an enterprise from a central point of command and control. 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, US Secret Service, Fidelity Investments, Bureau of Engraving & Printing, Southwestern Bell, Department of Defense, IRS, NASA, Disney, Smithsonian Institution and MIT to name a few. For more information on MDI Security Systems including its award-winning 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.