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[LOGO] Dynasil




Contact:
Patty Kehe
Corporate Secretary
Dynasil Corporation of America
Phone: (617) 668-6855
pkehe@dynasil.com

Dynasil Closes $4 Million Revolving Line of Credit
Repays Santander Bank Loan, Regains Compliance with Subordinated
Lender

Watertown, Mass., May 2, 2014 - Dynasil Corporation of America
("Dynasil" or the "Company") (NASDAQ: DYSL), a developer of
sensing, detection and analysis technology for homeland security,
medical and industrial applications, announced today that it
entered into an agreement with Middlesex Savings Bank to establish
a revolving line of credit of up to $4 million, subject to
availability restrictions described below.  Upon the closing of
the loan, the Company repaid in full the approximately $1.8
million owed Santander Bank and the $600,000 of accrued interest
due Massachusetts Capital Resource Company, its subordinated
lender.   As a result, as of May 1, 2014, the Company has total
indebtedness outstanding consisting $2.4 million newly drawn
senior debt owed to Middlesex Savings Bank and approximately $3
million of existing subordinated debt owed to Massachusetts
Capital Resource Company due July 2017.

The Loan Agreement provides that the revolving line of credit
expires May 2017 and is secured by substantially all the Company's
assets.  Borrowing availability under the revolving line of credit
is determined monthly based on eligible billed and unbilled
accounts receivable and inventory.   The Company is required to
maintain compliance with a debt to service coverage ratio.  The
interest rate on the loan is equal to the Prime Rate, but in no
event less than 3.25%.

"We are pleased to have completed this financing with Middlesex
Savings Bank, which will allow us to move forward in a positive
relationship with our banking partners," said Peter Sulick,
President and Chief Executive Officer of Dynasil. "With our
improved financial condition, we look forward to future
opportunities to grow Dynasil, both organically and through
acquisitions." Additional details of the new Middlesex Savings
Bank Agreement will be outlined in the company's 8-K filing with
the SEC.

About Dynasil

Dynasil Corporation of America (NASDAQ: DYSL) develops and
manufactures optical detection and analysis technology and
components for the homeland security, medical and industrial
markets.
Combining world-class expertise in research and materials science
with extensive experience in manufacturing and product
development, Dynasil is commercializing products including dual-
mode radiation detection solutions for Homeland Security and
commercial applications and sensors for non-destructive testing.
Dynasil has an impressive and growing portfolio of issued and
pending U.S. patents.  The Company is based in Watertown,
Massachusetts, with additional operations in Mass., Minn., NY, NJ
and the United Kingdom. More information about the Company is
available at www.dynasil.com.



Safe Harbor

This news release may contain forward looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995.  These forward-looking statements regarding future events
and our future results are based on current expectations,
estimates, forecasts, and projections and the beliefs and
assumptions of our management, including, without limitation, our
expectations regarding results of operations, the adequacy of our
current financing sources to fund our current operations, future
loan payments and the impact of the refinancing on Dynasil's
financial position and growth strategy.  These forward-looking
statements may be identified by the use of words such as "plans",
"intends," "may," "could," "expect," "estimate," "anticipate,"
"continue" or similar terms, though not all forward-looking
statements contain such words.  The actual results of the future
events described in such forward looking statements could differ
materially from those stated in such forward looking statements
due to a number of important factors. These factors that could
cause actual results to differ from those anticipated or predicted
include, but are not limited to, continuation of existing market
conditions, the demand for our products, the borrowing
availability under our new line of credit or the absence thereof
and the uncertainties set forth in the Company's 2013 Annual
Report on Form 10 K, filed December 20, 2013, including the risk
factors contained in Item 1a, the Company's Quarterly Report on
Form 10-Q filed on February 12, 2014 and from time to time in the
Company's other filings with the Securities and Exchange
Commission. The Company disclaims any intention or obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.