MDI Launches Program to Support Temporarily Laid-off Employees

April 11, 2007

ST. PAUL, Minn., April 11, 2007 — Minnesota Diversified Industries, Inc. (MDI) announced today a Safety Net Fund for MDI’s employees impacted by the temporary lay-off that occurred last month. The fund is intended to assist employees who have emergency financial needs during the layoff period. The program provides financial assistance for emergency needs, including mortgage or rent, utilities, home repairs, medical bills and prescription drugs. It will be administered by MDI with the collaboration of community business and social service expertise to determine eligibility and dollar amounts awarded. The financial assistance will be a one-time grant per qualified employee.

In addition to the Safety Net Fund, MDI will continue to provide individuals with counseling and accessibility assistance of community and state resources through its in-house Employee Assistance Program (EAP). In the last week, MDI offered laid-off employees temporary work opportunities in its St. Paul manufacturing operation and ten employees accepted the temporary assignments. They are being assisted by MDI’s Vocational Rehabilitation team to secure temporary housing and transportation. Additionally, the company anticipates moving other work from St. Paul to Grand Rapids or Hibbing in the next several weeks in an attempt to minimize the personal impact caused by the layoff.

“The response from our partners in Hibbing and Grand Rapids has been tremendous. It is obvious that these communities have business leaders as well as social service providers that are responsive to the changing needs of their citizens and are committed to taking action,” remarked Mark de Naray, President & CEO. “We are very thankful for all the support that MDI has received”.

MDI anticipates calling back all workers by September of 2007 and is providing regular progress updates to laid-off workers and individual assistance to those in need to help bridge the gap for individuals and their families. During this time, tuition assistance is available for those interested in pursuing education or certification courses.

“Our goal is for these individuals to remain within their communities and not be forced to re-locate long-term, which is why these initiatives are being taken. As we ramp up our operations, we need to bring back the same dedicated and talented employees that have made MDI successful,” commented Colleen Haberman, VP Human Resources.

Founded in 1964, MDI provides market-leading plastic manufacturing, fulfillment and packaging and assembly services. The company targets mid-large customers operating in private and government sectors. As a not-for-profit organization, MDI is committed to assisting people with disabilities and disadvantages by offering progressive development and job opportunities in a competitive business enterprise. ISO 9001:2000 accredited, MDI’s organizational excellence translates into lower costs, increased value and greater profitability for customers. MDI has operations in St. Paul, Grand Rapids and Hibbing, MN. For more information, visit www.mdi.org.