News Release

Dyadic Partners with Scripps Florida to Annotate Dyadic's Proprietary Cl Genome

Project Expected to Facilitate Development of ClTechnology Platform and Expand New Product Development Opportunities

JUPITER, Fla -- March 31, 2006 -- Dyadic International, Inc. (AMEX: OIL), a biotechnology company, announced today that it has engaged The Scripps Research Institute to work with Dyadic scientists to provide a complete annotation of the genome of Dyadic's proprietary fungal organism, Chrysosporium lucknowense ("Cl"), which was sequenced by another vendor last year. The work will be carried out at the Scripps' new research center in Palm Beach County, Florida, under the direction of Dr. Nick Tsinoremas, Senior Director of Informatics at Scripps Florida. Financial details of the agreement were not disclosed.

Dr. Glenn Nedwin, Chief Scientific Officer of Dyadic, explained, "The annotated searchable genomic sequence and associated gene database developed by Dr. Tsinoremas and his team at Scripps Florida will serve as a blueprint for the Clhost strain that forms the basis for Dyadic's platform technology. We expect this knowledge to facilitate further development of our proprietary ClHost Technoloqv as a robust platform for the discovery·of biotherapeutics, enzymes and other biomolecules for medical and industrial applications. We also expect that this knowledge will enable us to accelerate the pace at which we identify new enzyme product candidates from Clfor diverse industries such as textiles, pulp and paper, food and feed, and cellulosicethanol."

"As one of the world's leading biomedical research institutes, Scripps is the ideal partner for Dyadic to complete this work," added Dr. Richard Burlingame, Executive Director of R&D for Dyadic. "Dr. Tsinoremas and his group bring world class knowledge and experience in genomic annotation to this project. Before joining Scripps Florida, he served as director of Computational Genomics and Genomic Discovery at Merck/Rosetta. What is more, this collaboration will help broaden and deepen the already close and productive relationship that is developing between scientists at Dyadic and Scripps. We also welcome the opportunity to participate in the development of a successful biotechnology cluster in South Florida, and expect that this is just the first of many collaborations with Scripps."

Dr. Richard Lerner, President of The Scripps Research Institute, said, "In addition to its potential contributions to Dyadic's success, this partnership for our new Palm Beach County-based research group also will benefit Scripps Florida and the broader scientific community. Because relatively few fungal genomes have been sequenced and annotated to date, our work on Dyadic's Clhost strain will increase the body of knowledge on this important class of lower eukaryotes. We expect that the information gained through the comparative genomics of fungi will provide insights into eukaryotic cellular processes, and provide important clues for the treatment of genetic, metabolic and infectious diseases."

About Scripps

The Scripps Research Institute, headquartered in La Jolla, California, in 18 bu.ildings on 40 acres 'overlooking the Pacific Ocean, is one of the world's largest independent, non- profit biomedical research organizations. It stands at the forefront of basic biomedical science that seeks to comprehend the most fundamental processes of life. Scripps Research is internationally recognized for its research into immunology, molecular and cellular biology, chemistry, neurosciences, autoimmune, cardiovascular, and infectious diseases, and synthetic vaccine development. Established in its current configuration in 1961, it employs approximately 3,000 scientists, postdoctoral fellows, scientific and other technicians, doctoral degree graduate students, and administrative and technical support personnel.

Scripps Florida, a 364,000 square-foot, state-of-the-art biomedical research facility, will be built in Palm Beach County. The facility will focus on basic biomedical science, drug discovery, and technology development. Palm Beach County and the State of Florida have provided start-up economic packages for development, building, staffing, and equipping the campus. Scripps Florida now operates with approximately 160 scientists, technicians, and administrative staff at 40,000 square-foot lab facilities on the Florida Atlantic University campus in Jupiter.

About Dyadic

Dyadic 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 lucknowense fungus, known as C1. Dyadic currently sells more than 45 liquid and dry enzyme products to more than 200 industrial customers in approximately 50 countries.

Dyadic 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 biolog.ical products from genes to produce targeted protein products for diverse markets.

Cautionary Statement for Forward-Looking Statements

Certain 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 and Exchange Commission, which are available free of charge on the SEC's web site at http://www, including our Annual Report on Form 10- KSB for the year ended December 31, 2005. Except as required by law, we expressly disclaim any intent or obligation to update any forward-looking statements.

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