Dynasil Corporation of America (NASDAQ: DYSL) today announced the incorporation of a new business unit to pursue opportunities in the biomedical field. Dynasil Biomedical Corp. is located in Rochester, MN and Dr. Daniel Ericson has joined Dynasil Biomedical as Scientific Lead with responsibility for research and development. Dynasil Biomedical completed the purchase of Dr. Ericson's rights to six biomedical technologies invented or co-invented by him for a purchase price of $300,000, together with certain rights to royalty and milestone payments if these technologies are successfully developed. He previously worked at Mayo Clinic and several of the assigned technologies are jointly owned with that institution. Additionally, he invented several medical technologies which are in commercial use or being developed for commercial use by unrelated parties.

One of the inventions purchased is a tuberculosis test with the potential to provide a rapid (one hour) test of patients for tuberculosis. Present testing methods require several days, making them poorly suited for use in third-world countries where patients are difficult to contact and quarantine after they leave the medical facility. A second invention is a tissue sealant developed for both topical and internal bleeding. Initial results show that this tissue sealant accelerates clot formation and has high tensile strength. A third set of technologies focus on point of care diagnostics for assessing hemophilia, blood coagulation and cardiovascular risk. The point of care tests use finger stick blood samples and handheld optical detection systems. All of these technologies are in the early-stage and may require significant investment to support further development, regulatory approval and commercialization. While Dynasil currently believes that these technologies represent exciting opportunities, there can be no assurances that any of these technologies will be successfully commercialized.

Dynasil Biomedical will collaborate with Dynasil's RMD Research organization and its RMD Instruments business, both of which have proven track records in medical diagnostics. RMD Research has extensive experience obtaining federal funding and developing new technologies for a wide range of medical applications including PET scanning, radiological imaging and medical instrumentation. Several of the materials under development by RMD Research for nuclear radiation detection also have potential medical imaging applications. RMD Instruments manufactures and distributes the "Navigator", a sentinel node, breast biopsy probe used extensively during breast cancer surgery. Dynasil expects to make additional investments to accelerate the newly purchased technologies' release into the marketplace and that these investments will be complimented by external research funding.

Dynasil views the medical diagnostics market as a key area for continued investment where Dynasil can contribute its significant ability and expertise to make the world a safer and healthier place.

About Dynasil: Dynasil Corporation of America (NASDAQ: DYSL), is a provider of technology, products, services and solutions aimed at making the world safer and healthier. The company supplies a broad range of customers by serving their specific needs in the medical, industrial, and homeland security/defense markets. The Company has operations in New Jersey, New York, Massachusetts and the UK.

This news release may contain forward-looking statements usually containing the words "believe," "expect," "plan", "target", "can be", "potential", "intend", "view" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Future results of operations, technologies, projections, and expectations, which may relate to this release, involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the factors detailed in the Company's Annual Report or Form 10-K, Quarterly Reports on Form 10-Q, as well as in the Company's other Securities and Exchange Commission filings, continuation of existing market conditions and demand for our products.

Dynasil Corporation of America
Patty Kehe, 607-272-3320, ext. 26
Email: pkehe@dynasilcorp.com