Dynasil Closes $4 Million Revolving Line of Credit

              Dynasil Closes $4 Million Revolving Line of Credit

Repays Santander Bank Loan, Regains Compliance with Subordinated Lender

PR Newswire

WATERTOWN, Mass., May 2, 2014

WATERTOWN, Mass., May 2, 2014 /PRNewswire/ --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.

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

SOURCE Dynasil Corporation of America

Website: http://www.dynasil.com
 
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