Contact:

Patty Kehe

Dynasil Corporation of America

Phone: (607) 272-3320, ext. 26

Email:  pkehe@dynasilcorp.com

Dynasil Announces First Quarter Fiscal Year 2011 Results with Record Revenue

WATERTOWN, Mass. – February 14, 2011 – Dynasil Corporation of America (NASDAQ: DYSL) today announced financial results for the quarter ended December 31, 2010.  Revenue for the first quarter of fiscal year 2011 which ended December 31, 2010 was at a record level of $11.6 million, an increase of 17% over revenue of $9.9 million for the quarter ended December 31, 2009.  Income from Operations for the quarter was $736,000 as compared to $1,072,000 for the quarter ended December 31, 2009 which includes certain non-recurring costs associated with our listing on the NASDAQ Global Market in December 2010 and higher acquisition costs. Net income was $375,000 or $0.03 per share, compared with a Net Income of $614,000 or $0.04 per share.

 “We are making significant investments for future growth with our NASDAQ listing, acquisitions, and commercialization of new technology which resulted in strong commercial business profitability being partially offset by our corporate level spending on future development.  We are pleased to have record revenue with our Optics/Photonics Products & Instruments segment revenue growing 34% and our Contract Research segment revenue growing 5%, with a  contracted backlog which will fund our R & D for approximately one and one-half years,” said Craig T. Dunham, Dynasil’s President and CEO.  “In addition, we continue to execute on our strategic objectives to leverage our technologies and solutions to offer leading nuclear detection and medical imaging materials around the globe.  We believe we are uniquely positioned to benefit from the industry trends in the medical, industrial, and homeland security/defense sectors.  For our dual mode detectors aimed at locating nuclear bombs or radioactive materials at ports and borders, we made significant progress during our first quarter developing commercial relationships with lead customers as well as procuring equipment to scale up production.  We expect to have dual mode detector production capacity operational at our recently acquired Hilger Crystals location during our second quarter and to achieve full production mode during this fiscal year.”

Peter Sulick, Chairman of Dynasil, stated, “I am pleased to have record revenue again this quarter, but the real story is our commitment and investment in future growth.  Dynasil has a strong asset base across our commercial product sectors.  This, in addition to promising technology coming out of RMD   positions us well going forward.  We are investing in the commercialization of certain of this technology while continuing  to evaluate additional commercialization opportunities, acquisitions, licensing and joint ventures.   Our listing on the NASDAQ Global Market in December 2010 was a significant achievement and we believe that it will allow the Company to attract additional world class team members and investors that will support the continued expansion of our business activities as well as enabling us to increase the trading liquidity of our stock, broaden our stockholder base and raise our profile in the investment community.”

The Company has scheduled a conference call to discuss the first quarter’s financial results and provide a business update to be held Tuesday, February 15, 2011 beginning at 2:00 p.m. Eastern time. To access the call, please dial (866) 393-8592 and enter conference ID number 4400 2598.

About Dynasil: Dynasil Corporation of America (NASDAQ: 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

	31-Dec		30-Sep
	2010		2010
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	2,624,189	$	4,111,966
Accounts receivable, net		6,849,724		6,360,583
Inventories		3,303,816		3,097,219
Cost in excess of billings		460,724		135,157
Prepaid income taxes		480,031		410,045
Prepaid expenses and other current assets		440,307		453,418
Total current assets		14,158,791		14,568,388
Property, Plant and Equipment, net		3,882,136		3,953,319
Other Assets
Intangibles, net		6,521,944		6,671,149
Goodwill		13,591,287		13,591,287
Deferred financing costs, net		180,590		190,568
Total other assets		20,293,821		20,453,004
Total Assets	$	38,334,748	$	38,974,711
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt	$	1,870,779	$	1,870,779
Accounts payable		1,047,100		1,482,250
Accrued expenses and other liabilities		1,546,197		1,823,222
Deferred tax liability		69,538		91,100
Dividends payable		131,400		131,400
Total current liabilities		4,665,014		5,398,751
Long-term Liabilities
Long-term debt, net		10,368,298		10,833,334
Contingent consideration		750,000		750,000
Total long-term liabilities		11,118,298		11,583,334
Temporary Equity		2,000,000		2,000,000
Stockholders' Equity		20,551,436		19,992,626
Total Liabilities and Stockholders' Equity	$	38,334,748	$	38,974,711

DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

	Three Months Ended
	December 31
	2010		2009
Net revenue	$	11,626,507	$	9,936,767
Cost of revenue		6,719,783		6,051,951
Gross profit		4,906,724		3,884,816
Selling, general and administrative expenses		4,171,010		2,812,980
Income from operations		735,714		1,071,836
Interest expense, net		158,196		162,441
Income before income taxes		577,518		909,395
Income taxes		202,341		295,626
Net income	$	375,177	$	613,769

Earnings per Share
Net income	$	375,177	$	613,769
Dividends on preferred stock		131,400		143,233
Net income applicable to common stockholders		243,777		470,536
Dividend add back due to assumed preferred stock conversion		131,400		-0-
Net income for diluted income per common share	$	375,177	$	470,536
Basic net income per common share	$	0.03	$	0.04
Diluted net income per common share	$	0.02	$	0.04
Weighted average shares outstanding
Basic		12,979,939		11,791,820
Diluted		15,497,495		11,968,319