Press Release dated

Receives $2.1 Million in Cash from Exercise of Warrants and Stock Options and

Announces $1.6 Million Debt-for-Equity Conversion by

its Two Largest Stockholders, including the Company's

Fla. - May 3, 2006 - 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

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.

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

1, 2006. The Francisco Trust, whose beneficiaries are the wife and children

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.

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.

Dyadic announced that on April 30, 2006, the maturity date of the Revolving

held by the Emalfarb Trust was extended from January 1, 2007 to January 1,

The Revolving Note has a combined principal and accrued interest balance of

approximately $2,440,900 as of May 1, 2006.

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