Continues Progress on Milestones



    SANTA CLARA, Calif., Aug. 6 /EMWNews/ -- DayStar

Technologies, Inc. (Nasdaq: DSTI), a developer of photovoltaic products

based on CIGS thin-film semiconductor technology, today announced financial

results for its second quarter of 2008, ended June 30, 2008.



    Net loss for the second quarter was $7.3 million, or a loss of $0.22

per share, compared with a net loss of $6.4 million, or a loss of $0.42 per

share in the second quarter of 2007. The increase in net loss mainly

reflects higher research and development expenses for DayStar's

CIGS-on-glass module and manufacturing process development, as expected.

The per share loss was calculated on the weighted average common shares

outstanding of 33.1 million, compared with 15.0 million in the second

quarter of last year, reflecting the company's public offering in the

fourth quarter of 2007.



    DayStar had cash, cash equivalents and investments of $47.9 million at

June 30, 2008, compared with $56.3 million at March 31, 2008. Except for

operating accounts, all of the company's cash is invested in treasury

instruments. As of June 30, 2008, the company had total liabilities of $5.8

million, and total stockholders' equity was $56.0 million.



    The company also reported second quarter capital investments of $4.5

million to support its planned ramp to commercial production. Outstanding

purchase orders for production equipment totaled approximately $15.6

million as of Aug. 4, 2008.



    "I am pleased that we have met all of the first half milestones that we

set out at the end of last year," said Dr. Stephan DeLuca, chief executive

officer. "We demonstrated our single stage sputter deposition process,

producing CIGS films with greater than 14 percent conversion efficiency

over large areas. We produced mini-modules with greater than 11.5 percent

conversion efficiency and the modules passed the critical 1000 hour damp

heat cycle testing that indicates a 20 year module lifetime.



    "During the first half of 2008, DayStar designed, built and began

operations of its manufacturing prototype CIGS coater, Big Baby, and we

have begun process scale-up by depositing CIGS on 2'x4' glass panels. We

secured a manufacturing facility for our first production line, and we have

placed orders for the equipment to build that line. Looking forward, the

company expects to have a scaled-up CIGS deposition process on Big Baby by

the end of this quarter, and we expect to begin the build-out of the

manufacturing line in September, which is necessary for our production line

to be up and running in our new facility in the first quarter of next

year," he said.



    Conference Call



    DayStar will hold its second quarter conference call today, Wednesday,

Aug. 6, 2008, at 2 pm Pacific time. To listen to the call, dial (210) 234-

0001 approximately 10 minutes prior to the start of the call. The pass code

is DayStar. A taped replay will be made available approximately one hour

after the conclusion of the call and will remain available for one week. To

access the replay, dial (203) 369-0733.

    About DayStar Technologies, Inc.



    DayStar Technologies, Inc. is engaged in the development, manufacturing

and marketing of photovoltaic products based upon CIGS thin film

semiconductor technology. For more information, visit the DayStar website

at http://www.daystartech.com.



    Certain statements contained in this press release, including

statements regarding the future business of DayStar, the timing progress of

its commercial manufacturing capacity, its technological development and

other statements contained herein regarding matters that are not historical

facts, are "forward-looking" statements (as defined in the Private

Securities Litigation Reform Act of 1995). Because such statements are

subject to risks and uncertainties, actual results may differ materially

from those expressed or implied by such forward-looking statements. Factors

that could cause actual results to differ materially from those expressed

or implied by such forward- looking statements include, but are not limited

to, those factors discussed in the section entitled "Risk Factors" in our

Annual Report on Form 10-KSB for the year ended December 31, 2007 and other

periodic reports filed with the Securities and Exchange Commission. You

should not place undue reliance on the forward-looking statements in this

press release, and we disavow any obligation to update or supplement those

statements in the event of any changes in the facts, circumstances, or

expectations that underlie those statements.










                          DAYSTAR TECHNOLOGIES, INC.

                       (A DEVELOPMENT STAGE ENTERPRISE)

                         CONSOLIDATED BALANCE SHEETS





                                             June 30, 2008   December 31, 2007

                                              (Unaudited)

                        ASSETS

    Current Assets:

      Cash and cash equivalents                $30,828,340       $61,365,559

      Investments                               17,028,665               -

      Other current assets                         590,542           666,511

        Total current assets                    48,447,547        62,032,070

    Property and Equipment, at cost             20,403,430        14,911,021

      Less accumulated depreciation and

       amortization                             (7,292,105)       (5,774,823)

        Net property and equipment              13,111,325         9,136,198

    Other Assets                                   204,873            72,427

        Total Assets                           $61,763,745       $71,240,695





          LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities:

      Accounts payable and accrued expenses     $3,060,023        $2,622,968

      Notes and capital leases payable,

       current portion                             179,954           174,996

        Total current liabilities                3,239,977         2,797,964

    Long-Term Liabilities:

      Notes and capital leases payable              78,768           171,983

      Deferred revenue                             420,000           420,000

      Deferred rent                                282,337               -

      Stock warrants                             1,782,972         2,771,090

        Total long-term liabilities              2,564,077         3,363,073

    Commitments and Contingencies                        -                 -

    Stockholders' Equity:

      Preferred stock, $.01 par value;

       3,000,000 shares authorized; 0

       shares issued and outstanding                    -                 -

      Common stock, $.01 par value;

       60,000,000 shares authorized;

       33,263,862 and 32,621,262

       shares issued and outstanding at

       June 30, 2008 and December 31,

       2007, respectively                          332,639           326,213

      Additional paid-in capital               137,964,118       135,387,049

      Accumulated deficit                      (10,145,391)      (10,145,391)

      Deficit accumulated during the

       development stage                       (72,245,612)      (60,488,213)

      Accumulated other comprehensive

       income                                       53,937                 -

        Total stockholders' equity              55,959,691        65,079,658

        Total Liabilities and Stockholders'

         Equity                                $61,763,745       $71,240,695







                          DAYSTAR TECHNOLOGIES, INC.

                       (A DEVELOPMENT STAGE ENTERPRISE)

                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (Unaudited)





                             For the Three Months        For the Six Months

                                 Ended June 30,             Ended June 30,

                              2008         2007          2008          2007



    Revenue:                      $-           $-            $-            $-



    Costs and Expenses:

      Research and

       development         3,875,213    2,646,540     6,855,436     4,940,172

      Selling, general and

       administrative      2,053,000    1,761,834     4,790,286     3,162,913

      Restructuring                -      171,564             -     1,554,365

      Depreciation and

       amortization          770,457      762,956     1,524,404     1,457,347

        Total costs and

         expenses          6,698,670    5,342,894    13,170,126    11,114,797



    Other Income

     (Expense):

      Other income           239,386       41,545       447,771        84,759

      Interest expense       (10,711)     (40,268)      (23,162)     (128,326)

      Amortization of note

       discount and

       financing costs             -     (266,911)            -    (4,067,499)

      (Loss) gain on

       derivative

       liabilities          (802,907)    (749,585)      988,118    (2,956,339)

      Loss on

       extinguishment of

       debt                        -            -             -    (6,091,469)

        Total other income

         (expense)          (574,232)  (1,015,219)    1,412,727   (13,158,874)

    Net Loss             $(7,272,902) $(6,358,113) $(11,757,399) $(24,273,671)



    Weighted Average

     Common Shares

     Outstanding

     (Basic And Diluted)  33,107,248   14,980,229    32,933,857    13,775,359



    Net Loss Per Share

     (Basic and Diluted)      $(0.22)      $(0.42)       $(0.36)       $(1.76)