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


        Dynasil Completes Refinance of its Debt with
                  Sovereign/Santander Bank

WEST  BERLIN, N.J. - July 13, 2010 - Dynasil Corporation  of
America  (OTCBB:  DYSL)  today announced  it  completed  the
refinancing of its debt with Sovereign/Santander  Bank  with
considerable interest and cash flow savings while increasing
Dynasil's lines of credit from $1.2 million to $8 million.
David  Swoyer,  Regional  Executive,  Corporate  Banking  of
Sovereign/Santander Bank said, "We are extremely pleased  to
partner  with  Dynasil, a company with a great track  record
and even greater potential."

The  Loan Agreement provides for a five-year $9 million term
loan  at  an  interest rate of 5.58%, a $3  million  working
capital line of credit at an interest rate of Prime  or  one
month LIBOR plus 2.75% and a $5 million acquisition line  of
credit  at  an interest rate of one month LIBOR  plus  3.5%.
The  $9 million term loan replaces all outstanding debt  and
lowers Dynasil's weighted average cost of debt from 6.82% to
5.58% (a decrease of 18%).  Including the repayment of a  $2
million  note  coming  due  in October  2010,  there  is  an
expected $3 million overall reduction in loan payments  over
the  next  twelve months, which frees up cash flow  to  fund
growth  activities and provides liquidity for the  Company's
working capital requirements, long-term financing needs  and
acquisition financing.

"We  are  pleased  to have completed this  refinancing  with
Sovereign/Santander Bank, which significantly increases  our
lines  of  credit at a considerable interest rate  and  cash
flow  savings",  said Craig T. Dunham, President  and  Chief
Executive   Officer  of  Dynasil.  "This   strengthens   our
financial  position and fuels our company's growth  strategy
both   organically  and  through  acquisitions."  Additional
details  of  the new Sovereign/Santander Agreement  will  be
outlined in the company's 8-K filing with the SEC.

About Dynasil: Dynasil Corporation of America (OTCBB: DYSL),
is   a  provider  of  technology,  products,  services   and
solutions  to  a  broad range of customers  to  serve  their
specific  needs  in  the medical, industrial,  and  homeland
security/defense markets. The Company has operations in  New
Jersey, New York and Massachusetts.

This  news  release  may contain forward-looking  statements
usually  containing the words "believe,"  "expect,"  "plan",
Starget",   "intend"   or   similar  expression,   including
statements  relating to future loan payments and the  impact
of  the  refinancing  on  Dynasil's financial  position  and
growth strategy.  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 and  in
the  Company's  other  Securities  and  Exchange  Commission
filings,  continuation  of existing  market  conditions  and
demand  for  our products.  Dynasil undertakes no obligation
to update these forward-looking statements to reflect actual
results, changes in assumptions or changes in other  factors
that may affect such forward-looking statements.