Dyadic Press Release Dated 5/04/06 Dyadic Increases Ownership in its Asian Subsidiary to 100%

Increases Ownership in its Asian Subsidiary to 100%

Fla. - May 4, 2006 - Dyadic International, Inc. (AMEX: DIL), a global

biotechnology company (the "Company"), with subsidiaries in Hong Kong and

mainland China, Poland, and The Netherlands, announced today that on April

2006, it purchased the remaining 17.5% of shares held by two minority

shareholders of its Asian subsidiary, giving it 100% ownership. The Asian

subsidiary is located in Hong Kong and mainland China, and serves as a

distributor of Dyadic's products to the Far East region. The minority

shareholders received $375,000 in cash and 212,501 shares of unregistered and

restricted Dyadic common stock in consideration for:

Emalfarb, Dyadic's Chairman and CEO, commented, "Our Asian subsidiary has been

an important part of Dyadic's global business for a number of years, and has

ably served as our gateway to the Far East. The Asian subsidiary team, now

people strong, provided approximately 40% of our 2005 revenues and has done

particularly outstanding job in helping us to establish a toe-hold in the pulp

& paper industry in the Far East. We are excited about future growth

opportunities in the Asian pulp & paper industry and in other areas, such as

energy. Asia is a growing economy which will require significant amounts of

energy, so we see it as a key market for Dyadic." Mr. Emalfarb continued, "This

transaction, along with the recently announced Debt-for-Equity conversion,

significantly simplifies and streamlines our balance sheet."

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

known as C1. Dyadic currently sells more than 45 liquid and dry enzyme products

to more than 200 industrial customers in approximately 50 countries.

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.

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

including our Annual Report on Form 10-KSB for the year ended December 31,

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