  We address the problem of minimizing a quadratic function subject to linear
constraints over binary variables. We introduce the exact solution method
called EXPEDIS where the constrained problem is transformed into a max-cut
instance, and then thewhole machinery available for max-cut can be used to
solve the transformed problem. We derive the theory in order to find a
transformation in the spirit of an exact penalty method; however, we are only
interested in exactness over the set of binary variables. In order to compute
the maximum cut we use the solver BiqMac. Numerical results show that this
algorithm can be successfully applied on various classes of problems.
