DYSL Dynasil Corp of America (CE)

Dynasil Corporation of America (OTCBB: DYSL) today announced record financial results for its 2010 third quarter, which ended June 30, 2010. The Company posted record revenue for the 2010 third quarter of $11.3 million which compares to $8.5 million in the third-quarter of 2009, a 33% increase year over year. Operating income, net income and diluted earnings per share for the quarter were $1.33 million, $727,646, and $0.05, increases of 92%, 85%, and 120%, respectively, compared with the prior year.

“Dynasil has completed another outstanding quarter with record revenue, earnings and financial results. We are pleased with our strong Q3 results which clearly reflect the strength of our diversified product portfolio, bolstered by innovation, commercialization initiatives and operational excellence.” said Craig T. Dunham, CEO at Dynasil. “We are also very excited about our portfolio of products and technologies for the coming year and we continue to see exceptional opportunity for continued strong growth and profitability across all our businesses. In addition, the refinancing of all our debt with Sovereign/Santander Bank provides Dynasil maximum financial flexibility to achieve our expansion goals through both organic and acquisition growth which should further accelerate our progress.”

“The future looks really bright for Dynasil. Our activities in homeland defense, medical imaging, and material science enable us to serve and partner with our government and major corporations,” added Peter Sulick, Chairman, Dynasil Board of Directors. “Our growth strategy to acquire companies with strengths in complementary areas will enable us to more quickly commercialize our new technology while expanding the scale and scope of our product line and distribution channels. Exemplifying this is our recently announced acquisition of Hilger Crystals, a highly specialized expert in the manufacturer of synthetic crystals applicable to a wide range of our industrial, medical and homeland security applications with immediate importance to our nuclear detector business.”

About Dynasil: Dynasil Corporation of America (OTCBB: 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”, “intend” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Future results of operations, 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 and Subsidiaries     Consolidated Balance Sheets March 31 September 30 2010 2009 ASSETS (Unaudited)   Current assets Cash and cash equivalents $4,002,366 $3,104,778 Accounts receivable, net 4,690,587 4,053,742 Inventories 2,183,367 2,371,516 Deferred tax asset 346,500 290,100 Other current assets 425,595 306,848 Total current assets 11,648,415 10,126,984   Property, plant and equipment, net 2,641,397 2,744,724 Other Assets Intangibles, net 6,820,353 7,232,035 Goodwill 11,054,396 11,054,396 Deferred financing costs, net 53,499 64,637 Total other assets 17,928,248 18,351,068   Total Assets $32,218,060 $31,222,776   LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt 1,847,785 1,749,524 Note payable to related party 2,000,000 -0- Accounts payable 869,826 773,837 Billings in excess of cost -0- 60,448 Income taxes payable 345,828 507,122 Dividends payable 131,400 149,150 Accrued expenses and other current liabilities 1,809,680 1,111,342 Total current liabilities 7,004,519 4,351,423   Long-term Liabilities Long-term debt, net 4,685,547 6,386,796 Note payable to related party -0- 2,000,000 Total long-term liabilities 4,685,547 8,386,796

Temporary Equity

2,000,000 2,000,000

Stockholders' Equity

18,524,994 16,484,557   Total Liabilities and Stockholders' Equity $32,218,060 $31,222,776   DYNASIL CORPORATION OF AMERICA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)     Three Months Ended Nine Months Ended

June 30

June 30

2010   2009 2010   2009 Net revenues $11,294,868   8,512,892 $31,494,960   $25,883,053 Cost of revenues 6,562,323   4,860,590 18,669,123   15,643,287 Gross profit 4,732,545 3,652,302 12,825,837 10,239,766 Selling, general and administrative expenses 3,399,584   2,957,111 9,311,918   8,131,946 Income from operations 1,332,961 695,191 3,513,919 2,107,820 Interest expense, net 142,578   160,367 457,007   567,025 Income before income taxes 1,190,383 534,824 3,056,912 1,540,795 Income taxes 462,737   141,456 1,082,199   387,654 Net income $727,646   $393,368 $1,974,713   $1,153,141    

Earnings Per Share

Three Months Ended Nine Months Ended

June 30

June 30

Net income $727,646 $393,368 $1,974,713 $1,153,141 Dividends on preferred stock 131,400   149,150 406,033   447,450 Net income applicable to common shareholders 596,246 244,218 1,568,680 705,691 Dividend add back due to assumed Preferred Stock conversion 131,400 17,750 406,033 53,250 Net income for diluted income per             common share $727,646   $261,968 $1,974,713   $758,941   Basic net income per common share $ 0.05 $ 0.02 $ 0.13 $ 0.06 Diluted net income per common share $ 0.05 $ 0.02 $ 0.13 $ 0.06   Weighted average shares outstanding Basic 12,610,116 11,371,933 12,215,532 11,362,745 Diluted 14,982,382 12,346,636 14,687,798 12,337,448