DYNASIL      [Logos]







September 17, 2009


Dear Fellow Shareholders,

It is my pleasure to inform you that Peter Sulick has agreed to
become Chairman of our board and I have accepted the role of Vice
Chairman.  Peter's abilities and experience will keep us on the path
that began when I asked Craig Dunham to join and lead us in October
of 2004.  Since that time we have grown from $2.5 million to
over $34 million of revenues, going from a modest loss to over
$2 million in pre-tax profits.  Our share price has grown from
$.10 to over $2.00 per share, an increase of over 2000%, while
the S&P 500 has declined approximately 5%.

When we purchased RMD in July of 2008 we looked forward to the
opportunities and the scientific capabilities that their
organization would add to Dynasil.  In the year that RMD has
become a part of us, we have discovered that their scientific
research abilities are far beyond our expectations.
With close to 40 Ph.D.s, we have the ability and breadth to
become a substantial technology-driven organization.  Our
ability to guide and execute the opportunities provided by our
outstanding employees will determine the results for our bright
future.  For example, we recently were awarded eight
Phase II SBIR grants by the Department of Energy totaling
$6 million, subject to final contract negotiations, and we
currently have a backlog of over $32 million in research grants.

My role as Vice Chairman is to continue to lead us in the
development of joint ventures, future acquisitions, and to
help get our vision and message to the public.  As we continue
to grow, the public's interest should increase and create
liquidity for you, our shareholders.

Our team of Directors has great balance, with Craig Dunham
as our CEO, Dr. Jerry Entine with his experience in creating
a scientific enterprise, Cecil Ursprung who is outstanding in
matters concerning business operations, and now Peter Sulick as
Chairman.  I have great confidence that Peter will lead us to
even greater success than we have achieved in our past.

I take great pride in helping to have built the team that has
delivered these past results and I can assure you that we will
give you every effort to create an even brighter and more
prosperous future.  It has been greatly rewarding to have
served as your Chairman and I speak for all of us in thanking
you for your patience and support.  Dynasil's future has never
been better.

Sincerely,

Jim Saltzman
Vice Chairman



About Dynasil: Dynasil has achieved profitable growth from
$2 million in revenues to a running rate of $35 million during
the past five years. It derives the majority of its revenue from
contract research for government and private industry and is a
manufacturer of specialized instruments and products for a broad
range of applications markets in the medical, industrial, and
homeland security/ defense sectors.

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