Contact: Craig Dunham
                                       Dynasil Corporation of America
                                       Phone: (856) 767-4600
                                       Email: cdunham@Dynasil.com

        Dynasil Announces Third Quarter 2008 Results

WEST BERLIN, N.J. - August 13, 2008  - Dynasil Corporation
of America (OTCBB: DYSL.OB), announced the results of
operations for its 2008 third quarter ended June 30, 2008.
Dynasil is a manufacturer of photonic products including
optical materials, components, coatings and specialized
instruments.  For the 3 months ended June 30, 2008, revenues
were $2,676,263, an increase of 3.5% over the three months
ended June 30, 2007 and net income was $53,002 or $0.01 per
share, a decrease of 46% over net income of $98,104 or $0.02
per share.  Third quarter profits were impacted by staffing
costs and other expenses in support of a significant
acquisition which closed on July 1, 2008.    The Company
also experienced weaker than expected results in its optical
materials business unit.   Through three quarters, year to
date performance shows a 5.1% increase in revenues to
approximately $8.5 million and a 67% increase in net profit
to $389,266 versus the prior year.  Improved execution and a
turnaround in the Company's EMF optical coatings unit is the
largest contributor for the significant improvement in
profitability.

On  July  1,  2008, Dynasil acquired the stock of  Radiation
Monitoring  Devices,  Inc.  and  specific  assets   of   RMD
Instruments,  LLC  (together,  "RMD")  which  are   advanced
instruments and research companies located in Watertown, MA.
The  purchase  price totaled approximately $20 million.  RMD
revenues   for   the  twelve  months  ended   6/30/08   were
approximately  $22.5  million.  Preliminary,  unaudited  RMD
profit  before tax for the twelve months ended  6/30/08  was
approximately $3 million.  Management is very excited  about
this acquisition and views the addition of the RMD companies
to be a transformational event for Dynasil.  RMD is expected
to more than triple the Company's revenues and net income.

RMD   Instruments   Corporation   manufactures   and   sells
instruments  and components that management   believes  have
high  growth  potential.  These are sold  into  the  medical
imaging,  environmental sensing and quality control  markets
and  include hand-held analyzers for lead paint and  medical
probes   for   cancer   surgery  with   the   potential   to
significantly improve surgical outcomes.  More than  30%  of
RMD's   2007   commercial  revenue  came  from   after-sales
maintenance   and  support  providing  ongoing,   profitable
revenue  from  the installed base of instruments.   RMD  has
been  conducting government research under the SBIR  program
for  more  than  25  years and the current contract  backlog
exceeds  one  year.   Management  believes  that  prior  and
current  research projects are a source for  new  commercial
products  in  areas like medical imaging, augmented  reality
and homeland security.

The  addition of RMD continues Dynasil's dramatic turnaround
story.  Since 2004 when CEO Craig Dunham joined the company,
Dynasil  has  grown  from an unprofitable  $2.0  million  of
revenues  to  revenues which are expected  to  exceed  $35.0
million for fiscal year 2009 with strong profitability.

 "Adding RMD involved a substantial investment of resources
during Quarter Three but it is a major step in executing
Dynasil's profitable growth strategy.  We plan to apply our
skills in effective execution to build on their strong cash
flow by accelerating the growth of their current products as
well as commercializing new technology," said Mr. Dunham,
"We continue to execute our strategy of significant
profitable, growth through acquisitions and organic growth
through effective execution in our business units."
About Dynasil: Founded in 1960, Dynasil is a manufacturer of
photonic products including optical materials, components,
coatings and instruments for a broad range of applications
markets in the medical, industrial and defense sectors.  Its
wholly owned subsidiaries are located in New Jersey, New
York and Massachusetts.

This news release may contain forward-looking statements
usually containing the words "believe," "expect," 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.

<PAGE>

Dynasil Corporation of America and
Subsidiaries
Consolidated Balance Sheets





                                       June 30       September
                                                        30
                                         2008          2007
                                     (Unaudited)
                                     ----------     ----------

              ASSETS

Current assets
   Cash and cash equivalents           $371,904       $496,948
   Accounts receivable, net           1,317,830      1,284,844
   Inventories                        2,036,849      1,832,720
   Deferred tax asset                   216,100        216,100
   Other current assets                 207,409        130,548
                                     ----------     ----------
      Total current assets            4,150,092      3,961,160

Property, plant and equipment, net    2,603,608      2,436,517

Other assets                            232,374         88,698
                                     ----------     ----------
      Total Assets                   $6,986,074     $6,486,375
                                     ==========     ==========
  LIABILITIES AND STOCKHOLDERS'
              EQUITY

Current liabilities
    Note payable to bank               $560,070       $311,870
    Current portion of long-term        167,119         99,237
debt
    Accounts payable                    496,109        684,208
    Accrued expenses and other          571,260        587,872
current liabilities
                                     ----------     ----------
      Total current liabilities       1,794,558      1,683,187

Long-term debt, net                   1,463,362      1,626,980

Stockholders' Equity                  3,728,154      3,176,208
                                     ----------     ----------

Total Liabilities and                $6,986,074     $6,486,375
Stockholders' Equity
                                     ==========     ==========


DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS

                                   (Unaudited)
                                 Three Months Ended         Nine Months
Ended
                                      June 30                 June 30
                                  2008       2007         2008       2007

Sales                         $2,676,263  $2,584,519  $8,537,144  $8,124,031

Cost of Sales                  1,891,753   1,776,432   5,867,317   5,785,706
                               ---------   ---------   ---------   ---------
Gross Profit                     784,510     808,087   2,669,827   2,338,325

Selling, general and             678,736     660,459   2,131,366   1,960,250
                               ---------   ---------   ---------   ---------

Income from Operations           105,774     147,628     538,461     378,075

Interest expense - net            39,191      39,551     114,774     114,215
                               ---------   ---------   ---------   ---------

Income before Income Taxes        66,583     108,077     423,687     263,860

Income Tax expense                13,581       9,973      34,421      30,629
                               ---------   ---------   ---------   ---------

Net Income                       $53,002     $98,104    $389,266    $233,231
                               ---------   ---------   ---------   ---------
Net Income per share
   Basic                          $0.01       $0.02       $0.05       $0.03
   Diluted                        $0.00       $0.01       $0.05       $0.03

Weighted average shares
   outstanding                 6,743,853   6,114,679   6,559,629   5,104,271