BOOM

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Investor Presentation

March 2010

1

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 thesafe harbor provisions of the Private Securities Litigations Reform Act of 1995. These statements include information with respectto 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 futuretense, identify forward-looking statements.

These forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties thatcould cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks anduncertainties 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 potentialimpact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differmaterially from those contained in any forward-looking statement. Any forward-looking statement speaks only as of its date and wedo not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of suchstatement or to reflect the occurrence of unanticipated events. In addition, see "Risk Factors" for a discussion of these and otherfactors.

You are encouraged to read the SEC reports of DMC, particularly its Form 10-K for the Fiscal Year Ended December 31, 2010 formeaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.

2

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. Reconcil iations 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 uti l ize 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

abil ity 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 facil ity.

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 sti l l 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 reconcil iation 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 (i i) 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' abil ity 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 l ife. 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.

3

Key Data

Symbol:

52-week range:

Average daily trading volume (3 mo.):

Approx. market capitalization:

Shares outstanding:

Approximate float:

Fiscal year end:

2009 revenue:

2009 EPS:

2009 EBITDA:

2009 operating cash flow:

Cash (12/31/09):

Quarterly dividend:

NASDAQ GS: BOOM

$8.50 - $23.17

173,416

$202 million

13 million

12.3 million

December 31

$164.9 million

$0.66

$26.8 million

$29.5 million

$22.4 million

$0.04

(As of 3/26/10)

4

! Yvon Pierre Cariou - President and CEO

! Richard A. Santa - Sr. Vice President,

CFO and Secretary

! John G. Banker - Sr. Vice President,

Customers and Technology

! Rolf Rospek - CEO, DYNAenergetics and

Oilfield Products segment

Executive Management

5

Company Overview

• World’s dominant provider of explosion-welded clad metal plates

- Diversified customer base in 8 primary end markets

- Significant barriers to entry

- International network of production and sales facilities

- $50 million order backlog at end of 2009

• Three business segments provide diversified revenue streams

• Strong operating cash flow and balance sheet

• Low Cap Ex business model facilitates strong free cash flow

• Talented management with deep industry experience

• Long-term growth strategy

6

Financial Highlights

In millionsNet SalesNet Sales

In millions

Operating IncomeOperating Income

In millions

7

Financial Highlights

In millions

Net IncomeNet Income Diluted EPSDiluted EPS

In millions

$24.6 $2.00

8

Business Segments

Explosive MetalworkingExplosive Metalworking Oilfield ProductsOilfield Products AMK WeldingAMK Welding

$ 9.0 Million$ 9.0 Million$134.1 Million$134.1 Million $ 21.8 Million$ 21.8 Million

2009 Revenue by Segment

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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

10

DMC 2009 Revenue by Region

North America

47%Europe

23%Asia

17%

Russia

5%

Australia

2%

Other Countries -– 6%

11

Competing Cladding Technologies

Weld OverlayRollbond

• 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

Explosive MetalworkingExplosive Metalworking

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Key Demand Drivers for Explosion Welded Plates

Explosive MetalworkingExplosive Metalworking

CorrosionCorrosion

IndustrialIndustrial

CAPEXCAPEX

13Explosive MetalworkingExplosive Metalworking

Explosion Clad - a Critical Weapon in the Battle Against Rust

! “…a major industry challengeis the ‘rust crisis’ in the globalenergy infrastructure”

! “Worldwide energyinfrastructure too old”

! Most infrastructure “farbeyond original design life”

From presentation at 2009 Offshore Technology Conference

Matthew Simmons, Chairman - Simmons & Company International


Explosion Welding – a Key Step in Pre-fabrication Process

Metal SuppliersMetal SuppliersExplosion Explosion

WeldingWelding FabricatorsFabricators

End UsersEnd Users

MILLS & SERVICE CENTERS

Sourced Metals

• Carbon Steel

• Nickel Alloys

• Titanium

• Zirconium


Selected End Markets Served by Explosion Welding

• Oil & Gas industry

• Petrochemicals / chemicals

• Alternative energy

Corrosion

Transition Joints

• Aluminum production

• Power generation

• Hydrometallurgy

• Industrial refrigeration

• Shipbuilding

Above are several of the many industries that rely on explosion weldingAbove are several of the many industries that rely on explosion welding


End UsersChemicals Refinery Mining Engineering

Fabricators

Morimatsu Group China

End Users Include Leading Players in Respective Fields


DMC’s Dominant Industry Position Protected by SignificantBarriers to Entry

"" Global network of specialty-metals suppliersGlobal network of specialty-metals suppliers

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

"" Mastery of explosion-welding process in large-scale productionMastery of explosion-welding process in large-scale production

"" Strong working relationships with end-market customersStrong working relationships with end-market customers

18Oilfield ProductsOilfield Products

Oilfield Products Segment

• Manufactures explosive perforatingsystems and seismic devices for theinternational oil & gas services industry

• Growing presence in criticalinternational energy markets

• Recognized within industry for productand technology innovation

• Extension of DMC’s expertise inspecialized explosive manufacturingprocesses

• Generated 13% of DMC sales in 2009

19Oilfield ProductsOilfield Products

Explosive Perforating

The Perforation Process

1. After a wellbore is drilled and the

cement casing is in place, a

perforating gun is deployed into

the well

2. The gun is fired, sending steel

projectiles through the casing and

into the surrounding formation

creating “perforation tunnels”

3. Oil or gas flows through

perforation tunnels and into the

well

20

Financial Performance Review

1 1 Before discontinued operationsBefore discontinued operations

($mm)

2006

2007

2008

2009

Sales $113.5 $165.2 $232.6 $164.9

% growth 43% 46% 41% (31%)

Gross profit $42.0 $55.0 $70.8 $43.1

% margin 37% 33% 30% 26%

Operating profit $30.1 $38.9 $38.1 $16.2

% margin 27% 24% 16% 10%

Adjusted EBITDA $32.1 $43.5 $53.2 $26.8

% growth 86% 36% 22% (47%)

Net income1 $19.3 $24.6 $24.1 $8.5

% growth 86% 28% (2%) (65%)

EPS1 ($) $1.58 $2.00 $1.91 $0.66

% growth 84% 27% (5%) (65%)

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Balance Sheet Highlights

Assets

Cash, cash equivalents & restricted cash $ 9,416 $ 14,360 $ 22,411

Accounts receivables, net of allowance $ 39,833 $ 34,719 $ 25,807

Total current assets $ 94,730 $ 91,049 $ 87,974

Total assets $ 240,899 $ 229,586 $ 225,176

Liabilities

Total current liabilities $ 58,818 $ 45,747 $ 42,135

Long-term debt $ 61,530 $ 46,178 $ 34,120

Total liabilities $ 142,620 $ 111,084 $ 93,065

Total stockholders’ equity $ 98,279 $ 118,502 $ 132,111

Total liabilities and stockholders’ equity $ 240,899 $ 229,586 $ 225,176

2007 2008 2009

(In thousands)

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Supplemental Information

23

Sales and Explosion Welding Backlog Progression:Q1 2004 – Q4 2009

In millions


Capital Expenditures

(in millions)(in millions)

ActualActual ForecastForecast

25

Progression of Adjusted EBITDA & Net Income

(In millions)

26

Thank you.

Economy & Finance

BOOM