You are about to review the Report of Internal Investigation to the Audit Committee (the "Audit Committee") of the Board of Directors of Dyadic International, Inc. (the "Company"), dated August 15, 2007 and related exhibits thereto (collectively, the "Moscowitz Report"), submitted by Moscowitz & Moscowitz, P.A. ("Moscowitz & Moscowitz") to the Audit Committee. Moscowitz & Moscowitz was engaged by the Audit Committee as special counsel to conduct an independent investigation regarding the alleged improprieties concerning the Company's Asian operations.

For more information regarding the independent investigation, the Moscowitz Report and Moscowitz & Moscowitz, please see the Company's Current Report on Form 8-K filed March 4, 2008 with the Securities and Exchange Commission at www.sec.gov. The Moscowitz Report is the property of the Company. Any redistribution in any form without the express written consent of the Company is strictly prohibited.