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

     Dynasil Announces Financing Commitment Letter with
  Sovereign/Santander Bank to Strengthen Capital Structure
WEST  BERLIN, N.J. - May 12, 2010 - Dynasi+l Corporation  of
America  (OTCBB: DYSL.OB), ("Dynasil" or the  "Company"),  a
rapidly growing manufacturer of specialized instruments  and
products with applications in the homeland security/defense,
medical   and  industrial  sectors,  today  announced   that
following  a  competitive bidding process, the  Company  has
signed a Commitment Letter with Sovereign/Santander Bank  to
completely  refinance  the Company's  debt  structure  at  a
considerable  interest rate savings and increases  Dynasil's
lines of credit from $1.2 million to $8 million, subject  to
the parties entering into definitive loan documents.

"We  are  impressed with Dynasil's exceptional track  record
and  phenomenal growth prospects for the future," said David
Swoyer,    Regional   Executive,   Corporate   Banking    of
Sovereign/Santander Bank.  "The vision for the  company  and
the  strong management team completes the picture.   Dynasil
is  the  type of company that Sovereign/Santander  wants  to
support with our global resources."

The  financing Commitment Letter provides for a  $3  million
working capital line of credit, a five-year $9 million  term
loan  and  a $5 million acquisition line of credit.   It  is
designed  to provide sufficient liquidity for the  Company's
working capital requirements, long-term financing needs  and
certain  letter of credit requirements.  "I am very  pleased
with  the  confidence expressed in the company  by  our  new
banking partner," said Craig T. Dunham, President and  Chief
Executive  Officer  of Dynasil.  "This  Agreement,  together
with the lines of credit, represents a significant milestone
for  the  growth  and  success of our Company  and  provides
maximum financial flexibility to achieve our expansion goals
through both organic and acquisition growth," Dunham further
affirmed.  Additional details of the new Sovereign/Santander
Agreement will be outlined in the company's 10-Q filing with
the SEC.

  About  Dynasil: Founded in 1960, Dynasil is a manufacturer
of specialized instruments and products for a broad range of
applications markets in the medical, industrial and homeland
security/  defense  sectors.  Its wholly owned  subsidiaries
are located in New Jersey, New York and Massachusetts.

This  news  release may contain forward-looking  statements,
such  as  the  completion  of the new  credit  facility  and
refinancing of existing indebtedness, 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-
KSB  and  in  the  Company's other Securities  and  Exchange
Commission   filings,  continuation   of   existing   market
conditions and demand for our products.