DIL Dyadic International

Dyadic International, Inc. (AMEX:DIL), a biotechnology company, announced today that it is scheduled to join the new Russell Microcap(TM) Index when the Russell Investment Group reconstitutes its family of U.S. indexes on June 24. Russell recently posted a preliminary membership list at http://www.russell.com/us/indexes/us/reconstitution/microcap_adds.asp. The Russell Microcap Index will be comprised of the smallest 1,000 securities in the small-cap Russell 2000(R) Index plus the next 1,000 companies, based on a ranking of all U.S. equities by market capitalization and will not include less-regulated OTC bulletin board securities or pink-sheet stocks priced under $1. This new index offers managers and other investors a comprehensive, unbiased barometer to compare their performance against the genuine microcap marketplace of stocks. "We're pleased to be named to the Russell Microcap Index," said Mark Emalfarb, Dyadic's Chief Executive Officer. "This will increase Dyadic's visibility with investors and institutions that rely on the Russell Indexes as a key part of their investment strategy." The Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. More than $2.5 trillion in assets currently are benchmarked to them. Investment managers who oversee these funds purchase shares of member stocks according to that company's weighting in the particular index. Companies slated for the Russell Microcap were ranked as of May 31, 2005, by total market capitalization and weighted based on free-float adjustment, an integral aspect of Russell index methodology. Free-float adjustment means stocks are weighted by their available market capitalization which is calculated by multiplying the primary closing price by the available shares. About Dyadic: 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. About the Russell Indexes: The information presented above about the Russell indexes and the Russell Microcap Index is derived from the Russell Investment Group website, http://www.russell.com. 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 our business. For a discussion of the factors that could cause actual results to vary from these forward-looking statements, 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, 2004, which was filed with the SEC on April 15, 2005, and our Quarterly Report on Form 10-QSB, which was filed on May 17, 2005. We expressly disclaim any intent or obligation to update any forward-looking statements.