mdi Opens New Operations Center in Melbourne, Australia and Ships First OSNR Monitor to US Customer

Success Builds on First Licensing of Software to Optium; Australian Minister Celebrates Opening

mdi (Monitoring Division Inc.), a pioneer in the field of Live Network Health Management, today ships the first mdi OSNR (Optical Signal-to-Noise Ratio) Monitor unit to a US manufacturer of intelligent optical networking systems. Today, mdi also celebrates that its corporate Operations Center in Melbourne is open for business.

mdi launched to market in February 2008 and announced it had licensed OSNR software to Optium Corporation, now a part of Finisar. This software enables telecommunications OEMs and carrier customers to better distinguish and rapidly measure amplifier noise-based impairments in high-speed optical networks. Increasing interest in mdi’s technology led to several engagements with US customers who see in-band OSNR as a new system requirement to manage optical networks.

mdi has a strong track record of meeting specific progress milestones. The company recently concluded customer trials of its innovative and second product platform that provides more powerful monitoring tools and enables service providers to manage the health of the network in real-time. mdi is on target for revenue production with increasing customer pipeline.

The “Open for Business” celebration today will be hosted at mdi’s research facility at the University of Melbourne, where the company originally developed its technology as part of NICTA, Australia’s ICT Research Centre of Excellence.

To expand its resources for future product design and customer support, mdi has also created a new operations center in East Melbourne. Team resource growth is on plan, going from five to 20 team members by end of 2008. As a result, at today’s Grand Opening investors will deliver mdi $2 million as the second tranche of Series-A funding, with $1.75 million coming from investor Starfish Ventures to continue the company’s strong progress.

“Starfish Ventures is delighted to continue its support of mdi as it develops a new paradigm, the field of Live Network Health Management, with innovative software solutions,” said Michael Panaccio, Investment Principal of Starfish Ventures, “It’s especially pleasing to see mdi build on the legacy of some of Australia’s other great successes like Starfish-backed Resmed and Moldflow.”

The celebration will feature a special appearance by Senator the Honorable Stephen Conroy, Australia’s Minister for Broadband, Communications and the Digital Economy and the Deputy Leader of the Government in the Senate.

“These key milestones are further evidence of our capacity, as a freestanding and powerful new startup, to meet critical deliverables on time and on target,” stated mdi COO Sarah Dods. David Wright, mdi CEO adds, “We’re proud of our rock-solid progress in product development and our engagement with top-industry customers.”

About mdi

mdi was created to address critical gaps in network diagnostics, which carriers face as they move from traditional SONET to higher speed IP over Optics networks. The company uses unique pattern recognition and optical monitoring techniques to fill these gaps, and to build the new field of Live Network Health Management. The company delivers creative software solutions for telecom systems vendors and service providers who need to deploy agile networks and manage self-aware optical infrastructures in real time. Founded in 2007, mdi (Monitoring Division, Inc.) has offices in Sunnyvale, California and Melbourne, Australia. For more information, visit www.monitoringdivision.com.

Contacts

Market Ready Public Relations for mdi:
Jill Budzynski, 612-325-5726
jmb {at} marketready(.)com