Core Capital's ESG Signs Second Agreement with MathStar™

Business Wire, Oct 15, 2008

COLORADO SPRINGS, Colo. -- Core Capital's Electronics and Semiconductor Group (ESG), an investment banking practice, has signed an agreement with MathStar, Inc. (NASDAQ: MATH) to sell their intellectual property (IP). ESG recently completed an in-depth analysis of MathStar's IP and will now conduct a search for buyers for the unique technology of MathStar.

MathStar, a fabless semiconductor company, offers best-in-class, high-performance programmable logic solutions. MathStar's field programmable object arrays (FPOA) meets a wide variety of applications.

The agreement engages ESG to represent MathStar's FPOA products and technology. "In analyzing the IP, the ESG team concluded that MathStar's technology is fully proven and well developed, including complete product qualifications, a powerful suite of software support tools and custom demonstrations," said Loren Lancaster, managing director of ESG. "We have identified specific market channels where this technology could enable disruptive new solutions."

Doug Pihl, chairman and CEO of MathStar, explains, "The depth of ESG's analysis of the MathStar technology greatly exceeded our expectations. They thoroughly probed all key technology and market aspects to complete a well-formed evaluation. We're pleased that ESG has committed to MathStar's future."

Core Capital Group

Core Capital's Electronics and Semiconductor Group provides M&A services to middle market electronics and semiconductor companies. Core Capital is a partner of the International Network of M&A Partners (IMAP), a partnership of 60 leading M&A firms in 40 countries. www.ESGibank.com.

MathStar, Inc.

MathStar, Inc. (NASDAQ: MATH), a fabless semiconductor company, specializes in high-performance programmable logic. MathStar's field programmable object arrays (FPOA) can process arithmetic and logic operations at clock rates of 1-gigahertz. www.mathstar.com.

Forward-Looking Statements

Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of Section 21E the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about MathStar and its industry and include, but are not limited to, those set forth in the section of MathStar's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2008 under the heading "Risk Factors." MathStar undertakes no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.