Dyadic Receives $2.1 Million in Cash from Exercise of Warrants and Stock Options and Announces $1.6 Million Debt-for-Equity Con

Dyadic International, Inc. (AMEX:DIL), a biotechnology
company, announced today that it has received approximately $2.1
million in proceeds from the exercise of warrants to purchase an
aggregate of approximately 495,000 shares of the Company's common
stock at an exercise price of $3.33 per share, warrants to purchase
50,000 shares of common stock at an exercise price of $5.50 per share,
and stock options to purchase an aggregate of 47,417 shares of common
stock, with exercise prices ranging from $2.08 to $4.50 per share.
   Dyadic also announced that on May 1, 2006, the Company's two
largest stockholders increased their stock ownership in the Company
through debt-for-equity conversions of convertible notes due from
Dyadic in the aggregate amount of $1,577,872.06. The Emalfarb Trust,
whose beneficiary is Mark A. Emalfarb, Dyadic's Chief Executive
Officer, President and Chairman, received 251,298 shares of common
stock upon the conversion in full of its convertible promissory note
which had combined principal and accrued interest of $836,824.15 as of
May 1, 2006. The Francisco Trust, whose beneficiaries are the wife and
children of Mr. Emalfarb, received 222,537 shares of common stock upon
the conversion in full of its convertible promissory note which had
combined principal and accrued interest of $741,047.91 as of May 1,
2006.
   Subsequent to the conversion of the convertible promissory notes,
the Emalfarb Trust owns 5,822,125 shares and the Francisco Trust owns
4,769,578 shares, representing 24.3% and 19.9%, respectively, of the
Company's outstanding shares of common stock at May 1, 2006.
   Additionally, Dyadic announced that on April 30, 2006, the
maturity date of the Revolving Note held by the Emalfarb Trust was
extended from January 1, 2007 to January 1, 2008. The Revolving Note
has a combined principal and accrued interest balance of approximately
$2,440,900 as of May 1, 2006.

   About Dyadic

   Dyadic International, Inc. is engaged in the development,
manufacture and sale of biological products using a number of
proprietary fungal strains to produce enzymes and other biomaterials,
principally focused on a system for protein production based on the
patented Chrysosporium lucknowense fungus, known as C1. Dyadic
currently sells more than 45 liquid and dry enzyme products to more
than 200 industrial customers in approximately 50 countries.
   Dyadic intends to utilize its patented enabling and proprietary
platform technologies on its own behalf and under license to business
collaborators for the discovery, development and manufacture of
biological products from genes to produce targeted protein products
for diverse markets.

   Cautionary Statement for Forward-Looking Statements

   Certain statements contained in this press release are
"forward-looking statements." These forward-looking statements involve
risks and uncertainties that could cause our actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. For a discussion of these risks and
uncertainties, please see our filings from time to time with the
Securities and Exchange Commission, which are available free of charge
on the SEC's web site at http://www.sec.gov, including our Annual
Report on Form 10-KSB for the year ended December 31, 2005. Except as
required by law, we expressly disclaim any intent or obligation to
update any forward-looking statements.