Selected Highlights

--  Second quarter sales increase 24% to $34.5 million versus comparable
    year-ago quarter
--  Q2 net income up 13% to $5.7 million, or $0.46 per share, versus Q2
    last year
--  Explosive Metalworking backlog reaches record $84.7 million
    

Dynamic Materials Corporation (DMC) (NASDAQ: BOOM), a leading provider of explosion-welded clad metal plates, today reported financial results for its second quarter ended June 30, 2007.

Second quarter sales increased 24% to $34.5 million from $27.8 million in the second quarter last year. Second quarter gross margin was 35% versus 36% in the comparable year-ago quarter. Income from operations increased 12% to $8.8 million from $7.8 million in the second quarter last year. Net income increased 13% to $5.7 million, or $0.46 per diluted share, from $5.0 million, or $0.41 per diluted share, in the second quarter last year.

Explosive Metalworking

The Company's Explosive Metalworking segment reported second quarter sales of $33.1 million, up 24% from $26.6 million in the second quarter last year. Second quarter operating income increased 17% to $9.0 million from $7.7 million in the comparable year-ago quarter. Order backlog at the end of the second quarter was a record $84.7 million, an increase of 62% from the backlog reported at the end of last year's second quarter, and up 25% from the end of this year's first quarter.

AMK Welding

Second quarter sales at the Company's AMK Welding segment increased 21% to $1.3 million versus $1.1 million in the second quarter last year. Operating income was $18,000 versus $122,000 reported in the comparable year-ago quarter.

Management Commentary

Yvon Cariou, president and chief executive officer, said, "We are very encouraged by our achievements during the second quarter, which was a period marked both by strong operational performance and robust order volume. Quoting activity for our DETACLAD® explosion-welded plates was very strong throughout much of the quarter, and our sales team was successful at converting a large number of contract opportunities into firm orders. The success of our sales efforts is clearly reflected in our sharply higher order backlog."

"The expansion program at our Mt. Braddock, Penn. facility is nearly complete," Cariou added. "Most of our new capacity is now on line, and we expect the final equipment will arrive during the third quarter. We believe we are now well positioned internally to address the mounting level of work we are facing. Although there is continued tension in the supply chain for carbon steel backing plates, we do not believe this situation is impacting our ability to attract new orders. We are working closely with our suppliers to improve the predictability of material arrivals."

Cariou said significant enhancements also have been made to the infrastructure and operations of the Company's AMK Welding business. "We are increasingly encouraged by the prospects for improved performance within this segment."

Rick Santa, chief financial officer, said, "In light of our strong performance through the first half of the year, as well as the growth in our order backlog, we are optimistic we will surpass our targeted 2007 top-line growth rate of 20%."

Santa said DMC utilized cash during the quarter to increase inventories required for the manufacturing of new orders, as well as to fund the Company's capacity expansion programs. Cash at the end of the second quarter was $10.4 million versus $20.9 million at December 31, 2006. Total current assets at the end of the quarter were $69.5 million, up from $63.8 million at the end of last year. Working capital improved to $43.8 million from $38.6 million at December 31, 2006.

Six-Month Results

Through six months, sales increased 28% to $67.5 million compared with $52.9 million in the comparable six-month period of 2006. Gross margin was 34% versus 36% in the same period a year ago. Income from operations increased 14% to $16.3 million compared with $14.3 million in the comparable 2006 period. Net income through six months was $10.5 million, or $0.86 per diluted share, versus $10.5 million, or $0.86 per diluted share, in the same period last year. Net income in the 2006 six-month period included a gain from discontinued operations of $1.4 million, or $0.11 per share, net of tax, attributable to the sale of a real estate purchase option.

The Explosive Metalworking segment reported six-month sales of $64.6 million, an improvement of 27% versus sales of $50.8 million in the first half of 2006. Operating income increased 15% to $16.6 million compared with $14.4 million in the prior year's six-month period.

Six-month sales at AMK Welding increased 39% to $2.9 million compared with sales of $2.1 million in the comparable year-ago period. Operating income increased 23% to $282,000 compared with $230,000 in the prior-year period.

Conference call information

Management will hold a conference call to discuss second 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 atwww.dynamicmaterials.com, or by dialing into the teleconference at 866-831-6247 (617-213-8856 for international callers) and entering the passcode 61143078. 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 July 28, 2007, by calling 888-286-8010 (617-801-6888 for international callers) and entering the passcode 26769381.

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 upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration and similar industries. The Company operates two business segments: Explosive Metalworking, which uses proprietary explosive processes to fuse different metals and alloys, 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 website atwww.dynamicmaterials.com.

Safe Harbor Language

Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties including, but not limited to, the following: our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipment; fluctuations in customer demand; 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 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, 2006.

                DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
                  CONSOLIDATED STATEMENTS OF OPERATIONS
        FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
                (Dollars in Thousands, Except Share Data)
                                (unaudited)
                              Three months ended       Six months ended
                                   June 30,                June 30,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
NET SALES                   $   34,454  $   27,754  $   67,548  $   52,928
COST OF PRODUCTS SOLD           22,375      17,833      44,618      33,727
                            ----------  ----------  ----------  ----------
       Gross profit             12,079       9,921      22,930      19,201
                            ----------  ----------  ----------  ----------
COSTS AND EXPENSES:
  General and
   administrative expenses       1,854       1,153       3,516       2,681
  Selling expenses               1,455         946       3,101       2,270
                            ----------  ----------  ----------  ----------
       Total costs and
        expenses                 3,309       2,099       6,617       4,951
                            ----------  ----------  ----------  ----------
INCOME FROM OPERATIONS OF
 CONTINUING OPERATIONS           8,770       7,822      16,313      14,250
OTHER INCOME (EXPENSE):
  Interest income, net             177         132         365         225
  Other expense                    (13)        (11)        (20)        (16)
                            ----------  ----------  ----------  ----------
     INCOME BEFORE INCOME
      TAXES AND DISCONTINUED
      OPERATIONS                 8,934       7,943      16,658      14,459
INCOME TAX PROVISION             3,275       2,938       6,116       5,317
                            ----------  ----------  ----------  ----------
INCOME FROM CONTINUING
 OPERATIONS                      5,659       5,005      10,542       9,142
INCOME FROM DISCONTINUED
 OPERATIONS, net of tax              -           -           -       1,357
                            ----------  ----------  ----------  ----------
NET INCOME                  $    5,659  $    5,005  $   10,542  $   10,499
                            ==========  ==========  ==========  ==========
INCOME PER SHARE - BASIC:
  Continuing operations     $     0.47  $     0.42  $     0.88  $     0.78
  Discontinued operations            -           -           -        0.11
                            ----------  ----------  ----------  ----------
     Net income             $     0.47  $     0.42  $     0.88  $     0.89
                            ==========  ==========  ==========  ==========
INCOME PER SHARE - DILUTED:
  Continuing operations     $     0.46  $     0.41  $     0.86  $     0.75
  Discontinued operations            -           -           -        0.11
                            ----------  ----------  ----------  ----------
  Net income                $     0.46  $     0.41  $     0.86  $     0.86
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING -
  Basic                     12,048,969  11,805,610  12,029,382  11,786,957
                            ==========  ==========  ==========  ==========
  Diluted                   12,239,256  12,229,189  12,232,569  12,223,268
                            ==========  ==========  ==========  ==========
ANNUAL DIVIDENDS DECLARED
 PER COMMON SHARE           $     0.15  $        -  $     0.15  $     0.15
                            ==========  ==========  ==========  ==========
                DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Dollars in Thousands)
                                                   June 30,    December 31,
                                                     2007          2006
ASSETS                                           (unaudited)
                                                 ------------  ------------
Cash and cash equivalents                        $     10,374  $     17,886
Restricted cash                                             -         3,059
Accounts receivable, net                               26,036        21,549
Inventories                                            30,350        19,226
Other current assets                                    2,778         2,127
                                                 ------------  ------------
  Total current assets                                 69,538        63,847
Property, plant and equipment, net                     24,404        20,260
Other long-term assets                                    869           866
                                                 ------------  ------------
Total assets                                     $     94,811  $     84,973
                                                 ============  ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                 $     15,001  $     13,572
Dividend payable                                        1,821             -
Accrued income taxes                                      611         1,892
Customer advances                                       2,754         2,394
Other current liabilities                               5,127         7,057
Current portion of long-term debt                         390           382
                                                 ------------  ------------
  Total current liabilities                            25,704        25,297
Long-term debt                                              -           382
Other long-term liabilities                             1,645         1,714
Stockholders' equity                                   67,462        57,580
                                                 ------------  ------------
Total liabilities and stockholders' equity       $     94,811  $     84,973
                                                 ============  ============
                DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006
                          (Dollars in Thousands)
                                (unaudited)
                                                     2007          2006
                                                 -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                     $    10,542   $    10,499
  Adjustments to reconcile net income to net
   cash provided by (used in) operating
   activities -
     Income from discontinued operations, net of
      tax                                                  -        (1,357)
     Depreciation                                        910           645
     Amortization of capitalized debt issuance
      costs                                                -            14
     Stock-based compensation                            519           353
     Provision for deferred income taxes                 (80)          656
     Change in working capital, net                  (14,503)       (2,473)
                                                 -----------   -----------
      Net cash provided by (used in) operating
       activities                                     (2,612)        8,337
                                                 -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisition of property, plant and equipment        (4,977)       (2,561)
  Investment in marketable securities                      -             -
  Sale of marketable securities                            -         1,950
  Loan to related party                                    -        (1,206)
  Repayment on loan to related party                       -         1,206
  Change in other non-current assets                     (13)          147
  Payment received on other receivables related
   to discontinued operations                              -             3
  Cash flows provided by investing activities of
   discontinued operations                                 -         2,197
                                                 -----------   -----------
       Net cash flows provided by
        (used in) investing activities                (4,990)        1,736
                                                 -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayments on lines of credit, net                       -           (47)
  Payments on long-term debt                            (385)         (446)
  Payment of dividends                                     -        (1,766)
  Net proceeds from issuance of common stock             382           207
  Tax benefit related to stock options                     -            94
  Other cash flows from financing activities              10            15
                                                 -----------   -----------
       Net cash flows provided by
        (used in) financing activities                     7        (1,943)
                                                 -----------   -----------
EFFECTS OF EXCHANGE RATES ON CASH                         83           117
                                                 -----------   -----------
NET INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS                                          (7,512)        8,247
CASH AND CASH EQUIVALENTS, beginning of the
 period                                               17,886         5,763
                                                 -----------   -----------
CASH AND CASH EQUIVALENTS, end of the period     $    10,374   $    14,010
                                                 ===========   ===========


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