Dyadic Announces Successful Completion of Sequencing of C1 Fungal Genome - Dyadic's Proprietary Source of Proteins and Enzymes; Sequence Data To Accelerate Dyadic's Product Development Using C1 Host Technology.

JUPITER, Fla. -- Dyadic International, Inc. (OTCBB: DYAD), a biotechnology company, today announced the early completion of the genome sequence of Dyadic's C1 fungus by Agencourt Bioscience Corporation, Beverly, Massachusetts. Dyadic has spawned a successful business based on the ability of the C1 organism to produce large volumes of low cost industrial enzymes for industrial, textile, and agricultural applications. Dyadic is working to both expand the commercial capabilities of this technology, and further extend its market reach to develop new and better therapeutic proteins more affordably. The C1 genome sequencing completion will permit Dyadic to mine the information from this uniquely enabling fungal host for novel and improved protein products for a broad spectrum of industries, including Energy, Feed and Food, Pulp & Paper, and Pharmaceuticals. In addition, the sequence information is expected to enable Dyadic and its collaborators to expand the variety of proteins and enzymes that can be brought to market. The parties completed the high quality sequencing of the 38,000,000 bases in the C1 genome ahead of its scheduled time period.

"Dyadic will use this information to enhance the utility of its patented C1 Host Technology, which forms a cornerstone of its Enzyme and Biosciences businesses," said Mark Emalfarb, President and CEO of Dyadic. "The genome sequence should help us to use our C1 Host Technology to accelerate product development and market launches of our own enzymes, as well as to assist a variety of agricultural, chemical, pharmaceutical, personal care, diagnostic and other companies to develop novel products to meet their needs. We expect this wealth of information to result in faster development of more environmentally-friendly and functionally-superior industrial products and processes as well as potential new treatments for human diseases".

"The C1 genome sequence produced for Dyadic is a true success story," said Kevin McKernan, Chief Scientific Officer of Agencourt Bioscience Corporation. "Dyadic's C1 fungal genome assembled into 8 supercontigs with only 6X sequence coverage in the shotgun sequence phase of this project. This high quality assembled genome was made possible using Agencourt's SPRINTPrep technology in which Fosmids, large insert clones, can be prepared just as readily and cost-effectively as high copy plasmids. Other genomes deposited into Genbank of this size and character, tend to assemble into many more supercontigs at this level of sequence coverage, primarily due to fewer long range mate pairs from large insert clones being generated in the shotgun phase. The high quality assembled sequence we have completed will make it easier for Dyadic and its collaborators to more rapidly identify novel genes of commercial interest and to make improvements in the C1 Host Technology."

"This is a tremendous resource," said Dr. Richard Burlingame, Dyadic's Executive Director, Research & Development. "In our first examination of the sequence, we looked for six genes and found all six of them. In fact, we found nine genes of interest, all in about two hours of searching. Some of the genes were ones we have been struggling to find using traditional gene cloning methods; others were genes we had not looked for before. We can now do in hours, or even minutes, what used to take us months."

"We now have at our disposal a comprehensive blueprint of the C1 fungus," commented Dr. Peter Punt, a respected fungal molecular biologist for TNO Quality of Life (Zeist, the Netherlands) and a key developer of Dyadic's C1 Host Technology. "I am sure that Dyadic, as a business, is excited about the possibility of readily finding novel enzyme products to add to their portfolio. As a scientist, I am excited about the wealth of knowledge about the biochemistry, physiology, and genetics of C1 that the sequence will afford us. We expect that this will allow us all to rapidly characterize and improve the C1 Host Technology platform."

According to Dr. Gerald Fink, American Cancer Society Professor of Biology at Massachusetts Institute of Technology (MIT), a renowned expert in fungal research and a member of Dyadic's Scientific Advisory Board, "This development provides a gold mine of information that will help us to unlock the secrets hidden in the genome of this remarkable organism."

About Dyadic International, Inc.

Dyadic International, Inc., is engaged in the development, manufacture and sale of biological products (proteins, enzymes, peptides and other bio-molecules), as well as the licensing of its enabling proprietary technology to business collaborators for the discovery, development and manufacture of biological products from genes. Dyadic markets its products and services for applications in the textile, chemical, agricultural, pulp & paper, pharmaceutical, biotechnology and other industries, using its proprietary C1 Host Technology and C1 Expression and Screening Systems for the discovery, development and production of biological products.

Cautionary Statement for Forward-Looking Statements 

Statements contained in this press release may contain information that includes or is based upon certain "forward-looking statements" relating to Dyadic's business. For a discussion of the factors that could cause actual results to vary from these forward-looking statements, please see Dyadic International, Inc., filings from time to time with the Securities and Exchange Commission, all of 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, 2004, which was filed with the SEC on April 15, 2005. Dyadic expressly disclaims any intent or obligation to update any forward-looking statements.