DIL Dyadic International

Dyadic International, Inc. (AMEX:DIL), a biotechnology company, announced today that Dyadic scientist Marco Baez, Ph.D., will make a presentation at the International Distillers Grains Conference (IDGC) to be held at the Hyatt Regency Hotel in Minneapolis, MN, on September 12-14, 2006. Dr. Baez's presentation is scheduled for September 14 at 8:30 a.m. CDT (9:30 a.m. EDT). Presentation slides will be available at the Company's website at http://www.dyadic.com. Dr. Baez will participate on the panel entitled "Beyond Feed: Alternative Uses for Distillers Grains." Dr. Baez plans to discuss the Company's progress in the development of enzymes to convert cellulose and hemicellulose, which comprise as much as half the weight of Dried Distillers Grains (DDGs), to fermentable sugars. These additional sugars can be utilized to produce more ethanol from the same amount of corn. "Dyadic has spent over a decade of R&D in the design and development of enzymes for the increasingly efficient extraction of sugars from biomass, including a two year collaboration on DDGs with the Iowa Corn Promotion Board under a Department of Energy grant. We are using our proprietary technologies to develop enzyme mixtures that will increase yields and reduce the costs of the corn-to-ethanol process," Dr. Baez said. "This is a huge market opportunity for Dyadic, as production of corn-based ethanol in the U.S. alone is expected to increase from about 4.7 billion gallons in 2006 to at least 12 billion gallons by 2012. We believe that more efficient extraction of sugars from DDGs has the potential to increase the productivity of the corn ethanol manufacturing process by 10 to 20%. This could translate into billions of dollars of additional ethanol revenue every year." Hosted by Distillers Grains Quarterly and facilitated by the magazine's publisher, BBI International, the IDGC is exclusively focused on industry issues related to distillers grains produced at U.S. dry mill ethanol plants. More information about the conference is available at the conference website at http://www.distillersgrainsconference.com/ About Dyadic Dyadic International, Inc., based in Jupiter, Florida, with operations in the United States of America, Hong Kong and mainland China, Poland and The Netherlands, 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 is applying its technologies to produce enzymes for use in converting various agricultural products (e.g. corn) and waste products (e.g. switch grass, wheat straw, sugar cane bagasse, etc.) into fermentable sugars, which can then be used in the production of traditional and cellulosic ethanol as well as other products currently derived from petroleum. Dyadic's C1 technology also is being developed to facilitate the discovery, development and large-scale production of human antibodies and other high-value therapeutic proteins. Dyadic currently sells more than 45 liquid and dry enzyme products to more than 200 industrial customers in approximately 50 countries for the textile, pulp & paper, animal feed, alcohol, starch, and food and beverage industries. 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, and our subsequent filings with the SEC. Except as required by law, we expressly disclaim any intent or obligation to update any forward-looking statements.