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  Contacts:
  Patty Kehe
  Dynasil Corporation of America
  Phone: 617.668.6855
  Email: pkehe@dynasil.com

  David Calusdian
  Executive Vice President and Partner
  Sharon Merrill
  617.542.5300
  DYSL@InvestorRelations.com

Dynasil Corporation of America Secures $3 Million Financing from
         Massachusetts Capital Resource Company
   Note Purchase Agreement Satisfies Promissory Notes and
                 Provides $1.1 Million in
                Additional Working Capital

  Watertown, Mass., August 2, 2012   Dynasil Corporation of
  America (NASDAQ: DYSL), a leader in the development and
  manufacture of detection and analysis technology, today
  announced that it has completed a $3 million subordinated
  note financing with Massachusetts Capital Resource Company
  (MCRC) pursuant to a Note Purchase Agreement.

  Dynasil has used the proceeds from the Note Purchase
  Agreement to repay in full approximately $1.9 million in
  promissory notes issued in connection with a put right
  exercised by a former owner of RMD Instruments, LLC, which
  Dynasil acquired in 2008. The remaining $1.1 million of
  proceeds will be used for the Company's working capital.

  "Our financing agreement with MCRC is a significant liquidity
  event for Dynasil," said Peter Sulick, Dynasil's Chairman and
  Interim CEO and President.  "The financing replaced the short
  term and long term liability associated with the promissory
  notes with long term fixed-rate debt.  This new MCRC debt is
  interest-only for three years.  It also strengthened our
  balance sheet with an additional $1.1 million of working
  capital.  Completion of the Note Purchase Agreement and
  payment of the promissory notes has allowed the Company to
  reclassify approximately $7.6 million of the debt owed under
  its bank credit agreement as long-term debt, thereby
  eliminating balance sheet uncertainty associated with the
  retired promissory notes.  In addition, this financing
  satisfies one of the requirements of our amended bank credit
  agreement by raising at least $2.0 million in additional debt
  or equity by September 30, 2012."

  "We are very pleased to have the opportunity to support
  Dynasil, an innovative and dynamic Massachusetts based
  company," said Suzanne Dwyer, MCRC Vice President.   For more
  than thirty years, MCRC has provided mezzanine capital and
  long term debtto businesses which have
  operations in Massachusetts.  MCRC takes a long term
  investment perspective, working with management,
  entrepreneurs and investors to build growing, profitable
  companies.



  About Massachusetts Capital Resource Company

  Massachusetts Capital Resource Company is a limited
  partnership privately owned and funded by Massachusetts-based
  life insurance companies.  MCRC is a source of risk capital
  for Massachusetts business and invests across the entire
  range of business development financings, with a particular
  emphasis on growth capital.  MCRC has invested more than $600
  million in over 300 companies.  More information can be found
  at http://www.masscapital.com

  About Dynasil

  Dynasil Corporation of America (NASDAQ: DYSL) develops and
  manufactures detection and analysis technology, precision
  instruments and optical components for the homeland security,
  medical and industrial markets. Combining world-class
  technology with expertise in research and materials science,
  Dynasil is commercializing products including dual-mode
  radiation detection solutions for Homeland Security and
  commercial applications, probes for medical imaging 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.  These
  forward-looking statements may be identified by the use of
  words such as "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, without limitation, our ability to develop and
  commercialize our products, the size and growth of the
  potential markets for our products and our ability to serve
  those markets, the rate and degree of market acceptance of
  any of our products, general economic conditions, costs and
  availability of raw materials and management information
  systems, our ability to obtain and maintain intellectual
  property protection for our products, competition, the loss
  of key management personnel, litigation, the effect of
  governmental regulatory developments, the availability of
  financing sources, our ability to identify and execute on
  acquisition opportunities and integrate such acquisitions
  into our business, and seasonality, as well as the
  uncertainties set forth in the Company's Annual Report on
  Form 10-K  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