BOULDER, CO -- (Marketwire) -- 10/30/08 --


Selected Highlights

--  Q3 diluted EPS reported at $0.57 on 33% gross margin and lower tax
    rate
--  Revenue of $52.4M up 24% versus 2007 third quarter
--  Year-to-date Adjusted EBITDA increases 41% to $41.1M versus 2007 nine-
    month period
--  Management reports steady bookings and strong quoting activity
    

Dynamic Materials Corporation (DMC) (NASDAQ: BOOM), the world's leading provider of explosion-welded clad metal plates, today reported financial results for its third quarter and nine-month fiscal period ended Sept. 30, 2008.

DMC reported third quarter net income of $7.2 million, or $0.57 per diluted share, on revenue of $52.4 million, which compares with net income of $7.1 million, or $0.58 per diluted share, on sales of $42.1 million in the third quarter a year ago. The better-than-anticipated bottom-line results in this year's third quarter are primarily attributable to strong gross margin performance and a decrease in the Company's effective tax rate.

Third quarter gross margin was 33% compared with 34% in last year's third quarter, and a forecasted range of 28% to 29%. Gross margin was better than expected due to a favorable product mix at DMC's new Oilfield Products segment, a sharp increase in sales at the Company's AMK Welding segment, and higher-than-expected proportionate sales by DMC's U.S. explosion welding business, which generally enjoys higher gross margins than the Company's European explosion welding businesses.

DMC's effective tax rate for the 2008 third quarter was 7.0% versus 34.2% in the third quarter of 2007, and was well below the Company's previously forecasted full-year effective tax rate range of 32% to 33%. The variance arose primarily from the completion during the third quarter of an Internal Revenue Service examination, and from adjustments that were identified during the third quarter 2008 preparation of the Company's 2007 federal and state tax returns. The closure of the IRS examination enabled DMC to record previously unrecognized tax benefits of approximately $300,000. The "book-to-return" adjustments related primarily to apportionment factors utilized to compute state income taxes, and favorably impacted the third quarter tax provision by approximately $1.1 million.

Third quarter income from operations was $9.4 million versus $10.6 million in the third quarter a year-ago. The decrease is primarily attributable to a $3.2 million decline in third quarter sales at DMC's legacy explosion welding businesses and lower margin on those sales. Adjusted EBITDA for the third quarter increased 12% to $12.8 million from $11.5 million in the third quarter last year. Adjusted EBITDA is a non-GAAP (generally accepted accounting principle) financial measure used by management to measure operating performance. See additional information about adjusted EBITDA at the end of this news release.

Explosive Metalworking

Third quarter sales at the Company's Explosive Metalworking segment increased 6% to $42.7 million from $40.3 million in the third quarter last year. The increase reflects a $5.6 million sales contribution from the clad business of DYNAenergetics, which was acquired by DMC in November 2007. This contribution offset a $3.2 million decrease in sales at DMC's legacy explosive metalworking divisions. Operating income was $8.6 million versus $10.6 million in last year's third quarter. Adjusted EBITDA was $10.2 million versus $11.0 million in the third quarter a year ago.

Order backlog for the Explosive Metalworking segment at the end of the third quarter was $99 million versus $105 million reported at the end of this year's second quarter and $77 million recorded at the end of last year's third quarter. Approximately $4 million of the sequential decrease in backlog was related to changes in foreign exchange rates.

Oilfield Products

DMC's new Oilfield Products segment recorded third quarter sales of $6.8 million and operating income of $725,000. Third quarter adjusted EBITDA was $1.7 million.

AMK Welding

Third quarter sales at DMC's AMK Welding segment increased 65% to $2.9 million from $1.8 million in the third quarter last year. Operating income increased 169% to $874,000 from $325,000 in the comparable year-ago quarter. Adjusted EBITDA advanced 142% to $983,000 from $407,000 in the same quarter last year.

Management Commentary

Yvon Cariou, president and CEO, said, "Each of our three business segments exceeded internal third quarter forecasts, and this helped us achieve better-than-expected sales and earnings results. Bookings remained steady during the quarter, and we have maintained this momentum into the early stages of Q4. In fact we added $5 million to our explosive metalworking backlog on the first day of the fourth quarter, thanks to a significant order for plates to be used in a refinery project."

"Worldwide quoting activity has remained very strong in recent months," Cariou added. "During August and September, the total pool of projects tracked on our 'hot list' was higher than at anytime in the past 12 months. Moreover, in spite of global economic challenges, we have not seen material signs of project postponements or cancellations related to orders important to DMC. While it is difficult to predict how current macroeconomic conditions might impact bookings in 2009, we remain confident about the position we have established within our end markets as a key supplier of high-value components that help enhance the ROI of industrial infrastructure. We therefore are very optimistic about our prospects for continued long-term success."

Cariou said strong demand for pressure-vessel-quality steel plate has kept the supply chain for these specialized metals tight, but added that the Company's effort to diversify its network of providers is showing clear signs of progress.

Rick Santa, senior vice president and chief financial officer, said sales during the fourth quarter are expected to increase to a level comparable to the $63.2 million reported in the second quarter. Based on these anticipated sales volumes and normal fluctuations in product mix, fourth quarter gross margin is expected to be approximately 30%, which also would be comparable to DMC's second quarter performance. As a result of the third quarter tax provision adjustments, Santa said DMC's full-year 2008 blended effective tax rate is expected to approximate 27%. This rate is expected to increase to a range of 31% to 32% in fiscal 2009.

Santa added that fourth quarter operating income will be impacted by approximately $1.2 million of amortization expense associated with the DYNAenergetics acquisition. Pre-tax income will be impacted by approximately $1.2 million of interest expense.

Nine-month Results

Sales through nine months increased 58% to $174.0 million from $110.0 million in the comparable nine-month period of 2007. This year's nine-month sales results included $44.1 million of contributions from the DYNAenergetics businesses. Gross margin was 31% versus 34% in the same period a year ago.

Nine-month operating income increased 7% to $28.9 million from $26.9 million in the comparable prior-year period. Net income through nine months was $18.7 million, or $1.49 per diluted share, up 6% from net income of $17.7 million, or $1.44 per diluted share, in the same period last year. Adjusted EBITDA increased 41% to $41.1 million from $29.2 million at the nine-month mark of fiscal 2007.

The Explosive Metalworking segment reported nine-month sales of $147.3 million, up 40% from sales of $105.3 million in the first nine months of 2007. The explosion welding business of DYNAenergetics contributed $25.0 million to sales through nine months. Operating income increased 4% to $28.4 million from $27.2 million in the prior year's nine-month period. Adjusted EBITDA increased 23% to $35.0 million from $28.4 million in the same period a year ago.

Nine-month sales at DMC's Oilfield Products segment were $19.1 million. Operating income for the period was $775,000 and adjusted EBITDA was $3.6 million.

AMK Welding recorded nine-month sales of $7.5 million, an increase of 59% from $4.7 million in the comparable year-ago period. Operating income increased 246% to $2.1 million from $606,000 in the prior-year period. Adjusted EBITDA at the nine-month mark was $2.4 million, up 199% versus $810,000 in the same period a year ago.

Conference call information

Management will hold a conference call to discuss third quarter results today at 5:00 p.m. Eastern (3:00 p.m. Mountain). Investors are invited to listen to the call live via the Internet at www.dynamicmaterials.com, or by dialing into the teleconference at 866-394-8610 (706-758-0876 for international callers) and entering the passcode 69051992. Participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 30 days and a telephonic replay will be available through November 1, 2008, by calling 800-642-1687 (706-645-9291 for international callers) and entering the passcode 69051992.

Use of Non-GAAP Financial Measures

Non-GAAP results are presented only as a supplement to the financial statements based on U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information is provided to enhance the reader's understanding of DMC's financial performance, but no non-GAAP measure should be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of the most directly comparable GAAP measures to non-GAAP measures are provided within the schedules attached to this release.

EBITDA is defined as net income plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing DMC's operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure.

Management uses these non-GAAP measures in its operational and financial decision-making, believing that it is useful to eliminate certain items in order to focus on what it deems to be a more reliable indicator of ongoing operating performance and the company's ability to generate cash flow from operations. As a result, internal management reports used during monthly operating reviews feature the adjusted EBITDA. Management also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. EBITDA and adjusted EBITDA are also used by research analysts, investment bankers and lenders to assess operating performance. For example, a measure similar to EBITDA is required by the lenders under DMC's credit facility.

Because not all companies use identical calculations, DMC's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company's performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company's capital structure on its performance.

All of the items included in the reconciliation from net income to EBITDA and adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles and stock-based compensation) or (ii) items that management does not consider to be useful in assessing DMC's operating performance (e.g., income taxes and gain on sale of assets). In the case of the non-cash items, management believes that investors can better assess the company's operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect DMC's ability to generate free cash flow or invest in its business. For example, by adjusting for depreciation and amortization in computing EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, management believes that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.

About Dynamic Materials Corporation

Based in Boulder, Colorado, Dynamic Materials Corporation is a leading international metalworking company. Its products, which are typically used in industrial capital projects, include explosion-welded clad metal plates and other metal fabrications for use in a variety of industries, including oil and gas, petrochemicals, alternative energy, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration and similar industries. The Company operates three business segments: Explosive Metalworking, which uses proprietary explosive processes to fuse different metals and alloys; Oilfield Products, which manufactures, markets and sells specialized explosive components and systems used to perforate oil and gas wells; and AMK Welding, which utilizes various technologies to weld components for use in power-generation turbines, as well as commercial and military jet engines. For more information, visit the Company's websites at http://www.dynamicmaterials.com and http://www.dynaenergetics.de.

Safe Harbor Language

Except for the historical information contained herein, this news release contains forward-looking statements, including our guidance for fourth quarter and 2008 revenue, margins, income, expenses and tax rates, that involve risks and uncertainties. These risks and uncertainties include, but are not limited to, the following: our ability to realize sales from our backlog; our ability to successfully integrate and operate the recently-acquired DYNAenergetics businesses; our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipments; fluctuations in customer demand; fluctuations in foreign currencies, changes to customer orders; the cyclicality of our business; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; current or future limits on manufacturing capacity at our various operations; the availability and cost of funds; and general economic conditions, both domestic and foreign, impacting our business and the business of the end-market users we serve; as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2007.

               DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
      FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
                (Dollars in Thousands, Except Share Data)
                                (unaudited)
                              Three months ended      Nine months ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
NET SALES                   $   52,380  $   42,099  $  173,957  $  109,964
COST OF PRODUCTS SOLD           35,355      27,807     120,171      72,741
                            ----------  ----------  ----------  ----------
      Gross profit              17,025      14,292      53,786      37,223
                            ----------  ----------  ----------  ----------
COSTS AND EXPENSES:
   General and administrative
    expenses                     3,679       1,903      10,612       5,419
   Selling expenses              2,611       1,811       8,085       4,913
   Amortization expense of
    purchased intangible
    assets                       1,363           -       6,188           -
                            ----------  ----------  ----------  ----------
      Total costs and
       expenses                  7,653       3,714      24,885      10,332
                            ----------  ----------  ----------  ----------
INCOME FROM OPERATIONS           9,372      10,578      28,901      26,891
OTHER INCOME (EXPENSE):
   Other income (expense)         (268)         23        (227)          3
   Interest expense             (1,469)        (20)     (4,203)        (20)
   Interest income                 153         233         477         598
   Equity in earnings
    (losses) of joint
    ventures                       (19)          -         270           -
                            ----------  ----------  ----------  ----------
INCOME BEFORE INCOME TAXES       7,769      10,814      25,218      27,472
INCOME TAX PROVISION               546       3,697       6,535       9,813
                            ----------  ----------  ----------  ----------
NET INCOME                  $    7,223  $    7,117  $   18,683  $   17,659
                            ==========  ==========  ==========  ==========
INCOME PER SHARE:
   Basic                    $     0.58  $     0.59  $     1.50  $     1.47
                            ==========  ==========  ==========  ==========
   Diluted                  $     0.57  $     0.58  $     1.49  $     1.44
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING:
   Basic                    12,463,060  12,094,181  12,426,369  12,039,593
                            ==========  ==========  ==========  ==========
   Diluted                  12,567,912  12,301,772  12,572,226  12,245,212
                            ==========  ==========  ==========  ==========

ANNUAL DIVIDENDS DECLARED
 PER COMMON SHARE           $        -  $        -  $     0.15  $     0.15
                            ==========  ==========  ==========  ==========
               DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Dollars in Thousands)
                                                September 30, December 31,
                                                    2008          2007
ASSETS                                          (unaudited)
                                                ------------- -------------

Cash and cash equivalents                       $      30,508 $       9,045
Restricted cash                                             -           371
Accounts receivable, net                               31,031        39,833
Inventories                                            40,900        41,628
Other current assets                                    7,729         3,853
                                                ------------- -------------
   Total current assets                               110,168        94,730

Property, plant and equipment, net                     38,709        35,446
Goodwill, net                                          44,797        45,862
Purchased intangible assets, net                       54,876        61,914
Other long-term assets                                  2,878         2,947
                                                ------------- -------------
Total assets                                    $     251,428 $     240,899
                                                ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                $      18,722 $      22,590
Accrued income taxes                                      993         1,212
Other current liabilities                              14,476        19,394
Lines of credit - current                               4,785         7,587
Current portion of long-term debt                       7,471         8,035
                                                ------------- -------------
   Total current liabilities                           46,447        58,818

Lines of credit                                         9,536             -
Long-term debt                                         60,440        61,530
Deferred tax liabilities                               18,040        20,604
Other long-term liabilities                             1,125         1,668
Stockholders' equity                                  115,840        98,279
                                                ------------- -------------
Total liabilities and stockholders' equity      $     251,428 $     240,899
                                                ============= =============
               DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
                          (Dollars in Thousands)
                                (unaudited)
                                                          2008      2007
                                                        --------  --------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                           $ 18,683  $ 17,659
   Adjustments to reconcile net income to net cash
    provided by operating activities -
      Depreciation (including capital lease
       amortization)                                       3,621     1,394
      Amortization of purchased intangible assets          6,188         -
      Amortization of capitalized debt issuance costs        210         -
      Stock-based compensation                             2,363       912
      Provision for deferred income taxes                 (2,735)     (239)
      Equity in earnings of joint ventures                  (270)        -
      Change in working capital, net                      (3,255)   (6,925)
                                                        --------  --------
         Net cash provided by operating activities        24,805    12,801
                                                        --------  --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Acquisition of property, plant and equipment           (7,325)   (7,347)
   Change in other non-current assets                         50       (11)
                                                        --------  --------
      Net cash used in investing activities               (7,275)   (7,358)
                                                        --------  --------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings on lines of credit, net                      7,247         -
   Payments on long-term debt                             (1,251)     (389)
   Payments on capital lease obligations                    (308)        -
   Payment of dividends                                   (1,894)   (1,821)
   Payment of deferred debt issuance costs                  (167)        -
   Net proceeds from issuance of common stock                333       563
   Excess tax benefit related to stock options                 9         5
                                                        --------  --------
      Net cash provided by (used in) financing
       activities                                          3,969    (1,642)
                                                        --------  --------
EFFECTS OF EXCHANGE RATES ON CASH                            (36)      357
                                                        --------  --------
NET INCREASE IN CASH AND CASH EQUIVALENTS                 21,463     4,158

CASH AND CASH EQUIVALENTS, beginning of the period         9,045    17,886
                                                        --------  --------
CASH AND CASH EQUIVALENTS, end of the period            $ 30,508  $ 22,044
                                                        ========  ========
                DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
         RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
              DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
                        (Dollars in thousands)
                                 Three months ended     Nine months ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
                                    (unaudited)           (unaudited)

Explosive Metalworking Group    $  42,703  $  40,326  $ 147,344  $ 105,257
Oilfield Products                   6,756          -     19,128          -
AMK Welding                         2,921      1,773      7,485      4,707
                                ---------  ---------  ---------  ---------
Net sales                       $  52,380  $  42,099  $ 173,957  $ 109,964
                                =========  =========  =========  =========

Explosive Metalworking Group    $   8,593  $  10,646  $  28,393  $  27,197
Oilfield Products                     725          -        775          -
AMK Welding                           874        325      2,096        606
Unallocated Expenses                 (820)      (393)    (2,363)      (912)
                                ---------  ---------  ---------  ---------
Income from operations          $   9,372  $  10,578  $  28,901  $  26,891
                                =========  =========  =========  =========
                            For the three months ended September 30, 2008
                           ------------------------------------------------
                           Explosive
                         Metalworking Oilfield   AMK   Unallocated
                             Group    Products Welding  Expenses    Total
                           ---------- -------- -------- --------  ---------
                                             (unaudited)

Income from operations     $    8,593 $    725 $    874 $   (820) $   9,372
Adjustments:
  Stock-based compensation          -        -        -      820        820
  Depreciation                    924      234      109        -      1,267
  Amortization of purchased
   intangibles                    650      713        -        -      1,363
                           ---------- -------- -------- --------  ---------
Adjusted EBITDA            $   10,167 $  1,672 $    983 $      -  $  12,822
                           ========== ======== ======== ========  =========
                                           For the three months ended
                                               September 30, 2007
                                      -------------------------------------
                                     Explosive
                                   Metalworking  AMK   Unallocated
                                       Group   Welding  Expenses    Total
                                      -------- -------- --------  ---------
                                                  (unaudited)

Income from operations                $ 10,646 $    325 $   (393) $  10,578
Adjustments:
  Stock-based compensation                   -        -      393        393
  Depreciation                             402       82        -        484
                                      -------- -------- --------  ---------
Adjusted EBITDA                       $ 11,048 $    407 $      -  $  11,455
                                      ======== ======== ========  =========
               DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
        RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
             DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
                         (Dollars in thousands)
                           For the nine months ended September 30, 2008
                        ---------------------------------------------------
                        Explosive
                       Metalworking  Oilfield    AMK   Unallocated
                          Group      Products  Welding  Expenses    Total
                        ----------- --------- --------- --------  ---------
                                            (unaudited)

Income from operations  $    28,393 $     775 $   2,096 $ (2,363) $  28,901
Adjustments:
  Stock-based
   compensation                   -         -         -    2,363      2,363
  Depreciation                2,593       704       324        -      3,621
  Amortization of
   purchased intangibles      4,026     2,162         -        -      6,188
                        ----------- --------- --------- --------  ---------
Adjusted EBITDA         $    35,012 $   3,641 $   2,420 $      -  $  41,073
                        =========== ========= ========= ========  =========
                                           For the nine months ended
                                              September 30, 2007
                                    ---------------------------------------
                                    Explosive
                                  Metalworking   AMK   Unallocated
                                      Group    Welding  Expenses    Total
                                    --------- --------- --------  ---------
                                                  (unaudited)

Income from operations              $  27,197 $     606 $   (912) $  26,891
Adjustments:
  Stock-based
   compensation                             -         -      912        912
  Depreciation                          1,190       204        -      1,394
                                    --------- --------- --------  ---------
Adjusted EBITDA                     $  28,387 $     810 $      -  $  29,197
                                    ========= ========= ========  =========
                                    Three months ended  Nine months ended
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2008      2007      2008      2007
                                    --------  --------  --------  --------
                                        (unaudited)         (unaudited)

Net income                          $  7,223  $  7,117  $ 18,683  $ 17,659
  Interest expense                     1,469        20     4,203        20
  Interest income                       (153)     (233)     (477)     (598)
  Provision for income taxes             546     3,697     6,535     9,813
  Depreciation                         1,267       484     3,621     1,394
  Amortization of purchased
   intangible assets                   1,363         -     6,188         -
                                    --------  --------  --------  --------
EBITDA                                11,715    11,085    38,753    28,288
  Stock-based compensation               820       393     2,363       912
  Other (income) expense                 268       (23)      227        (3)
  Equity in (earnings) losses of
   joint ventures                         19         -      (270)        -
                                    --------  --------  --------  --------
Adjusted EBITDA                     $ 12,822  $ 11,455  $ 41,073  $ 29,197
                                    ========  ========  ========  ========

CONTACT:
Pfeiffer High Investor Relations, Inc.
Geoff High
303-393-7044