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Cautionary Statement Regarding Forward-looking Information

This presentation contains, and the Company may from time to time make, written or oral "forward-looking statements" within the safe harbor provisions of the Private Securities Litigations Reform Act of 1995. These statements include information with respect to our financial condition and its results of operations and businesses. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "continue," "project" and similar expressions, as well as statements in the future tense, identify forward-looking statements. These forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include: •  The ability to obtain new contracts at attractive prices; •  The size and timing of customer orders; •  Fluctuations in customer demand; •  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; •  The availability and cost of funds; •  General economic conditions, both domestically and abroad; •  The successful integration of acquisitions; and •  Fluctuations in foreign currencies. The effects of these factors are difficult to predict. New factors emerge from time to time and we cannot assess the potential impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statement speaks only as of its date and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of such statement or to reflect the occurrence of unanticipated events. In addition, see "Risk Factors" for a discussion of these and other factors. You are encouraged to read the SEC reports of DMC, particularly its Form 10-K for the Fiscal Year Ended December 31, 2011 for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.

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Cautionary Statement Regarding Forward-looking Information

Use of Non-GAAP Financial Measures Non-GAAP results used in this presentation are provided 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 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' 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.

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Key Data

Symbol: 52-week range: Average daily trading volume: Approx. market capitalization: Shares outstanding: Approximate float: Fiscal year end: Quarterly dividend:

NASDAQ GS: BOOM $14.00 - $24.53 57,000 $212 million 13.5 million 12.8 million December 31 $0.04

(As of 8/1/12)

•  International provider of industrial products and services through three business segments:

1.  Explosive Metalworking – World’s dominant provider of explosion-welded clad metal plates

2.  Oilfield Products – International manufacturer and distributor of advanced perforating systems for oil and gas wells

3.  AMK Welding – Provider of sophisticated welding services to the aircraft and ground-based turbine industries

•  All segments addressing demand from global energy industry

•  Strong balance sheet

•  Talented management with deep industry experience

Company Overview

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Executive Management

John G. Banker Sr. Vice President, Customers and Technology

Kevin T. Longe Executive Vice President and Chief Operating Officer

Richard A. Santa Sr. Vice President, CFO and Secretary

Rolf Rospek CEO, DYNAenergetics & Oilfield Products Segment

Yvon Pierre Cariou President and CEO

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Net Sales Operating Income

Net Income Adjusted EBITDA

Financial Highlights

DMC’s Global Presence Corporate Headquarters Explosion Welding production centers Explosion Welding sales offices and agents

Oilfield Products Headquarters Oilfield Products subsidiaries Oilfield Products sales agents AMK Welding Headquarters

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2011 Consolidated Revenue by Region

North America 51%

Germany 6%

South Korea 14%

Russia 4%

Other Countries -– 23%

France 2%

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Explosive Metalworking Oilfield Products AMK Welding

$ 9.9 Million $126.2 Million $ 72.8 Million

2011 Revenue by Business Segment Total Revenue: $208.9

Revenue Breakdown

Explosive Metalworking Segment Overview •  Market share leader in explosion-welded plate sales

North American estimate = 90% • European estimate = 70% • Global estimate = 30%

•  Manufacturing facilities in Pennsylvania, Germany and France

•  Serves diversified roster of industrial end markets

•  Low Cap-Ex requirements facilitate strong free cash flow

•  Benefiting from emerging-market investments in industrial infrastructure

•  Growth opportunities include new end market penetration, new plate configurations

•  Segment achieved revenue growth of 28% in 2011

•  $57 million order backlog at end of Q2 2012

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Weld Overlay Rollbond

•  Performed by small group of international hot rolling steel mills

•  Thickness niche is generally 2” and less

•  Compatible metals only

Explosion Weld

•  Performed by small field of international competitors led by Dynamic Materials Corporation

•  Most versatile cladding technology

•  Only cladding process that can address both compatible and non-compatible metals

•  Thickness sweet-spot is 1” to 6”

•  Arc-welding process typically performed by metal fabricators

•  Thickness niche is generally 6” and greater

•  Compatible metals only

Competing Cladding Technologies

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Key Demand Drivers for Explosion Welded Plates

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  “…a major industry challenge is the ‘rust crisis’ in the global energy infrastructure”

  “Worldwide energy infrastructure too old”

  Most infrastructure “far beyond original design life”

From presentation at 2009 Offshore Technology Conference Matthew Simmons, Chairman - Simmons & Company International

Explosion Clad – a Critical Weapon in the Battle Against Rust

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Explosion Welding – a Key Step in Pre-fabrication Process

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Metal Suppliers Explosion Welding

End Users

MILLS & SERVICE CENTERS

Sourced Metals

•  Carbon Steel

•  Nickel Alloys

•  Titanium

•  Zirconium

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•  Chemical

•  Oil & Gas

•  Metals & Mining

•  Marine

•  Defense & Protection

•  Power Generation

•  Alternative Energy

•  Industrial Refrigeration

•  Transportation

Nine primary industries that utilize explosion welded products

Select End-Markets Served by Explosion Welding

End Users Chemicals Refining Mining Engineering

Morimatsu Group China

End Users Include Leading Players in Respective Fields

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  Global network of specialty-metals suppliers

  Permits and shooting sites in U.S., France, Sweden & Germany

  Mastery of explosion-welding process in large-scale production

  Strong working relationships with end-market customers

DMC’s Dominant Industry Position Protected by Significant Barriers to Entry

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Oilfield Products Segment Overview

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•  DMC’s Oilfield Products segment manufactures explosive perforating systems and seismic devices for the oil & gas services industry under its DYNAenergetics brand

•  Three-year sales CAGR of 38%. Sales up 61% in 2011 vs. 2010

•  Benefiting from increase in drilling activity, re-perforating of existing wells and use of new drilling techniques

•  Recognized among customers and peers for technical innovation, broad product offering and global distribution network

•  Extension of DMC’s expertise in specialized explosive manufacturing processes

•  Growth opportunities include acquisitions, establishment of new production facilities

Oilfield Products Segment Overview - continued

1. Once wellbore is drilled and cement and steel casing are in place, a perforating gun is deployed into the well

2. The perforating gun is fired, sending plasma jets through the casing and into the surrounding formation creating “perforation tunnels”

3. Oil or gas flows through perforation tunnels and into the well

Well Perforating Process

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Oilfield Products – Select Customers

*

*

*

* These major energy service companies are both competitors and customers. When distribution limitations inhibit these companies’ ability to supply perforating equipment to certain international locations, they often turn to DYNAenergetics.

*

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U.S. Rig Count   1,924 rigs operating as of July 27, 2012  Up 16, or 1%, vs. same week of 2011

DYNAenergetics is well positioned to capitalize on the expansion in U.S. and international oil and gas drilling activity.

Key Industry Indicator

Worldwide Rig Count   3,484 rigs operating as of June 30, 2012  Up 227, or 7%, vs. same month of 2011

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•  Provider of advanced welding services to ground-based turbine and commercial & military aircraft engine markets

•  Customers include GE Energy, Barnes Aerospace, and Pratt & Whitney

•  Generated 5% of DMC sales in 2011

•  New Divisional President focused on expanding customer relationships and market opportunities

AMK Welding Segment Overview

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* Includes $2.1 mm gain on step acquisitions of joint ventures

Financial Performance Review

Assets Cash, cash equivalents $ 4,572 $ 5,276 $ 5,215 Accounts receivables, net $ 27,567 $ 36,368 $ 35,273 Inventories $ 35,880 $ 43,218 $ 48,850 Total current assets $ 72,735 $ 91,189 $ 95,337 Total assets $ 201,393 $ 213,426 $ 222,037 Liabilities Total current liabilities $ 38,392 $ 29,310 $ 27,144 Lines of credit $ – $ 26,462 $ 35,515 Long-term debt $ 14,579 $ 118 $ 86 Total liabilities $ 66,309 $ 67,383 $ 73,218 Total stockholders’ equity $ 135,084 $ 146,043 $ 148,819 Total liabilities and stockholders’ equity $ 201,393 $ 213,426 $ 213,426

(In thousands)

Balance Sheet Highlights

2010 2011 Q2 2012

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•  Company dominates worldwide explosion-welding industry

•  Oilfield Products segment is well-positioned in international oil and gas industry

•  Aggressive growth strategies established for each of Company’s three business segments

•  Strong balance sheet and credit facility provide financial flexibility

•  Strong free cash flow facilitated by low Cap-Ex business model

•  Talented management with deep industry experience

Summary Highlights

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Thank you.

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Supplemental Information

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Capital Expenditures

Projected

In millions