Dyadic Announces Termination of Employment of its President and CEO, Mark A. Emalfarb

Announces Termination of Employment of its President and CEO, Mark A.

Fla - September 24, 2007 - Dyadic International, Inc. (AMEX: DIL) announced

today that on September 20, 2007, a special committee (the "Special Committee")

of the board of directors (the "Board") of Dyadic International, Inc. (the

"Company"), acting upon the recommendation of the audit committee (the "Audit

Committee") of the Board, authorized the termination for cause by the Company

the employment of Mark A. Emalfarb as the Company's Chief Executive Officer

President under his employment agreement dated as of April 1, 2001, as amended

by the first amendment to employment agreement dated as of March 16, 2006.

termination was effectuated on September 24, 2007. Mr. Emalfarb previously

terminated his voluntary leave of absence from the Board on September 5, 2007,

and remains a director of the Company, although the Company now has requested

that Mr. Emalfarb voluntarily resign from the Board immediately.

Company's action was taken based upon initial information discovered by

management and after an independent investigation was conducted at the

direction, and under the supervision, of the Audit Committee (the

"Investigation"). The Investigation, carried out by independent legal counsel,

revealed that Mr. Emalfarb had willfully concealed facts relating to

material operational and financial improprieties at the Company's Asian

Special Committee determined, based on the Investigation, that (i) there were

improprieties on the part of any other member of the Company's current active

management; and (ii) current active management had made appropriate inquiry

regarding the Asian subsidiaries. Therefore, the current senior management

consisting of Wayne Moor, interim Chief Executive Officer, Dr. Glenn E. Nedwin,

the Company's Chief Scientific Officer and interim President, Lisa De La Pointe,

interim Chief Financial Officer, and Alexander (Sasha) Bondar, Vice President,

Strategy & Corporate Development, continue to serve as senior management of

September 7, 2007, Harry Z. Rosengart was elected as Chairman of the Board,

replacing Mr. Emalfarb who had previously been on a leave of absence. Mr.

Rosengart has been on the Board since April 2005.

reported in the Company's previously filed Current Reports on Form 8-K dated

April 23, 2007 and May 17, 2007, the Company became aware of material

operational and financial improprieties at its Asian subsidiaries, through

its Hong Kong and mainland China operations were conducted, following the death

of the managing director of its Asian subsidiaries. As a result of the

completion of the Investigation into the operations of the Company's Asian

subsidiaries, it has been concluded that the Asian subsidiaries' largest

purported customer was secretly controlled by the Asian subsidiaries'

management, including the deceased managing director. It was determined, among

other things, that this purported customer purchased products from the Company's

Asian subsidiaries which the purported customer subsequently re-sold on a cash

basis to businesses in mainland China, apparently allowing certain of these

businesses to avoid Chinese reporting and VAT requirements. The Investigation

revealed that certain members of the former management of the Company and the

management of the Asian subsidiaries had willfully concealed facts relating

these material operational and financial improprieties by the Company's Asian

subsidiaries. The Company has abandoned its Asian operations because of its

concerns over these material operational and financial improprieties.

previously reported, the Company's financial statements, including those

contained in its Annual Report on Form 10-KSB, as previously filed with the

Securities and Exchange Commission (the "SEC"), should not be relied upon.

Company is currently in the process of determining the proper accounting

treatment to record the effect of abandoning the Asian operations and to be

to issue its Quarterly Reports on Form 10-QSB for the quarters ended March

June 30 and September 30, 2007, although there can be no assurances in this

regard as to the timing of or the Company's ability to achieve same.

Company has had discussions and shared the foregoing information with the SEC's

Miami Division of Enforcement.

International, Inc. is a biotechnology company that uses its patented and

proprietary technologies to conduct research and development activities for

discovery, development, and manufacture of products and enabling solutions

the bioenergy, industrial enzyme and pharmaceutical industries.

Statement for Forward-Looking Statements

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

Exchange Commission, which are available free of charge on the SEC's web site

http://www.sec.gov, including our Annual Report on Form 10-KSB for the year

ended December 31, 2006, 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.

(Sasha) Bondar, 561-743-8333

Berkman, 310-826-5051