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

            Dynasil Reports Record Third Quarter Results

                       All-Time Record Revenue
              Net Income From Operations Increases 92%


WEST  BERLIN, N.J. - August 16, 2010 - 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          1,847,785       1,749,524
      debt
    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               1,809,680       1,111,342
       current liabilities
                                           -----------     -----------
      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
                                             2,000,000       2,000,000
Temporary Equity
                                            18,524,994      16,484,557
Stockholders' Equity
                                           -----------     -----------
Total Liabilities and Stockholders'        $32,218,060     $31,222,776
Equity                                     ===========     ===========

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        1,190,383     534,824      3,056,912    1,540,795
taxes
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        131,400     149,150        406,033      447,450
stock
                          -----------  ----------    -----------  -----------
Net income applicable to
common shareholders           596,246     244,218      1,568,680      705,691
Dividend add back due to
assumed
      Preferred Stock         131,400      17,750        406,033       53,250
        conversion
                          -----------  ----------    -----------  -----------
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