Contact:
                                   Craig Dunham

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

   Dynasil Announces Contracts Totaling $5.6 Million for
       Detection of Nuclear Weapons and Dirty Bombs

WEST BERLIN, N.J. January 22, 2009 - Dynasil Corporation
of America (OTCBB: DYSL) announced today that Radiation
Monitoring Devices, Inc., Dynasil's research subsidiary,
was awarded three research and development contracts with
three year periods of performance from the Domestic Nuclear
Detection Office of the Department of Homeland Security
totaling more than $5.6 million to develop new, high
performance nuclear radiation detector materials targeted
to protect the nation from nuclear and radiological
threats.

One of the most serious threats faced by the United
States is the possibility of terrorists smuggling a nuclear
weapon into the country and the Department of Homeland
Security is seeking improved detection equipment.  Existing
detectors tend to be expensive, too small, or are plagued
by false alarms from naturally occurring radioactive
materials, such as kitty litter and ceramics, which emit
radiation.

To address this challenge, scientists at Radiation
Monitoring Devices, Inc. ("RMD") will build upon their 35
years of detector development experience and examine
advanced radiation detectors made from innovative
semiconductor crystals.  Mr. Kanai Shah, RMD's Principal
Investigator on these projects, stated: "The major
technical challenge is to produce high purity single
crystals with superior electronic properties."

These crystals are targeted to be used to build the next
generation of room temperature radiation detectors that
couple high sensitivity with unique discriminating ability
to identify radioactive sources.  This could provide
Homeland Security, the military, customs, police, and first
responders with the tools they need to detect and interdict
these weapons of mass destruction.

According to Dr. Michael Squillante, RMD's Vice President
of Research, "This is a case of applying proven
semiconductor processing techniques to exciting state-of-
the-art electronic materials to solve a critical need and
potentially save lives."

RMD has assembled a team including personnel from
Raytheon Corporation and the University of Michigan which
brings together expertise in materials science, detector
technology and systems integration to potentially
investigate, develop, manufacture and deploy the resulting
systems.

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.