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

         Dynasil Announces Fiscal Year 2008 Results

WEST  BERLIN, N.J. - December 30, 2008 - Dynasil  Corporation
of   America  (OTCBB:  DYSL.OB),  announced  the  results  of
operations  for  its  fiscal year ended September  30,  2008.
Dynasil  is  a  manufacturer of photonic  products  including
optical   materials,  components,  coatings  and  specialized
instruments  as  well  as  contract  research.   The  Company
supplies  a  broad  range  of  applications  markets  in  the
medical, industrial, and homeland security/ defense sectors.

Fiscal year 2008 was a transformational year for Dynasil with
the  acquisition  of Radiation Monitoring Devices,  Inc.  and
certain  assets of RMD Instruments, LLC (together, "RMD")  on
July  1,  2008.  When compared to fiscal year 2007,  revenues
increased by 58.6% from $10.9 to $17.1 million and net income
increased by 114.3% from $0.5 to $1.16 million.  Fiscal  year
2008  results included only one quarter of results  from  the
RMD  acquisition  and proforma 2008 revenues  with  RMD  were
$34.3  million.   Fiscal  year 2008  revenues  for  Dynasil's
historical  businesses other than RMD  were  up  5%  and  net
income  before  tax was up 47%, from $0.43 to $0.63  million,
compared  to  fiscal  year 2007.  Revenue  growth  and  major
operational  improvements at Dynasil's EMF  subsidiary  drove
those  substantial gains. For Quarter 4, the RMD  acquisition
tripled revenues from $2.7 to $8.6 million and was the  major
factor in more than quadrupling net profit before taxes  from
$0.17 to $0.81 million.

"We are pleased with our fiscal year 2008 results, especially
the technical capabilities and intellectual property acquired
with  RMD," said Craig T. Dunham, President and CEO.  "Adding
RMD was a major step in executing Dynasil's profitable growth
strategy  since we expect it to drive short term  results  as
well   as   provide   exciting   technology   for   potential
commercialization.   At a time when economic  conditions  are
impacting commercial revenues, it is very helpful to  have  a
significant  portion of revenues coming from  RMD's  contract
research which is increasing substantially with a backlog  of
more  than  one year.  We plan to build on RMD's strong  cash
flow by accelerating the growth of RMD's current products and
targeting  the commercialization of RMD's new technology  for
uses  such  as  medical  imaging sensors  and  detectors  for
nuclear materials for Homeland Security.  We plan to continue
to  execute our strategy of significant and profitable growth
through  acquisitions and the organic growth of our  business
units through effective execution."

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,"  "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.

<PAGE>

Dynasil Corporation of America and
Subsidiaries
Consolidated Balance Sheets
                                      September      September
                                         30            30
                                     -----------     ----------
                                         2008          2007
              ASSETS

Current assets
   Cash and cash equivalents          $3,882,955       $496,948
   Accounts receivable, net            3,390,703      1,284,844
   Inventories                         2,909,730      1,832,720
   Deferred tax asset                    233,500        216,100
   Other current assets                  259,896        130,548
                                     -----------     ----------
      Total current assets            10,676,784      3,961,160

Property, plant and equipment, net     2,694,290      2,436,517
Other Assets
   Intangibles, net                    7,807,414         49,475
   Goodwill                           11,014,240            -0-
   Deferred financing costs, net          81,136         30,167
   Other assets                            8,360          9,056
                                     -----------     ----------
      Total other assets              18,911,150         88,698
                                     -----------     ----------
      Total Assets                   $32,282,224     $6,486,375


  LIABILITIES AND STOCKHOLDERS'
              EQUITY

Current liabilities
    Note payable to bank                 490,117       $311,870
    Current portion of long-term       1,649,101         99,237
     debt
    Accounts payable                   1,026,675        687,208
    Accrued expenses and other         1,657,168        587,872
     current liabilities
                                     -----------     ----------
      Total current liabilities        4,823,061      1,683,187

Long-term debt                        10,178,420      1,626,980

Stockholders' Equity                  17,280,743      3,176,208
                                     -----------     ----------
Total Liabilities and                $32,282,224     $6,486,375
Stockholders' Equity




DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS

                              Three Months Ended        Twelve Months Ended
                                 September 30               September 30
                                  2008      2007         2008         2007
                             ----------  ----------  -----------  -----------
Sales                        $8,579,199  $2,670,619  $17,116,341  $10,794,650

Cost of Sales                 5,209,711   1,712,985   11,307,034    7,498,691
                             ----------  ----------  -----------  -----------
Gross Profit                  3,369,488     957,634    5,809,307    3,295,959

Selling, general and          2,403,162     748,636    4,359,493    2,708,886
administrative
                             ----------  ----------  -----------  -----------
Income from Operations          966,326     208,998    1,449,814      587,073

Interest expense - net          154,286      39,308      214,090      153,523
                             ----------  ----------  -----------  -----------
Income before Income Taxes   $  812,040     169,690    1,235,724      433,550

Income Tax expense (benefit)     39,336    (139,089)      73,757     (108,460)
                             ----------  ----------  -----------  -----------
Net Income                   $  772,704  $  308,779  $ 1,161,967   $  542,010
                             ----------  ----------  -----------  -----------
Net Income (Loss) per share
   Basic                          $0.05       $0.05        $0.12        $0.08
   Diluted                        $0.05       $0.04        $0.11        $0.07

Weighted average shares
  outstanding                11,992,472   7,235,170    8,412,935    6,476,128