DayStar Provides Mid-Year Update

Remains on Track for Q1 2009 Production

SANTA CLARA, Calif., July 8 /PRNewswire-FirstCall/ -- DayStar Technologies, Inc. , a developer of photovoltaic products based on CIGS thin-film semiconductor technology, today will provide a mid-year update on its progress in three major areas: mini-module development, the scale-up of its CIGS deposition process and its build-out of the production line for commercial shipments. Dr. Stephan DeLuca, the company's CEO, will also discuss his new organization and take questions from investors in a conference call at 2pm Pacific time.

To listen to the call, dial 210-839-8501 approximately 10 minutes prior to the start of the call. The pass code is DayStar. The conference call will be available via a live webcast on the investor relations section of the DayStar website at http://www.daystartech.com/. Access the web site 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the web site for 12 months. 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 402-280-9982.

Mini-Module Development

The company has progressed from the initial task of proving the CIGS deposition process to development of the monitoring and control systems required for the anticipated scale-up of the process. DayStar has successfully developed these systems to the point at which it now believes it has effective control over the reactive sputtering process, a key milestone in the scale-up process of "Big Baby," its initial manufacturing line.

Engineering the Scale-up

The initial tests on Big Baby have gone well, and the films made from it have been well within the uniformity specifications the company originally set. "The results of the three significant tests we have run give us confidence that the basic structure of our tool design is sound, so we have released the tool design to begin fabrication of our production CIGS deposition tool," said Dr. DeLuca. "We believe we are on track to have our first production line up and running in the first quarter of 2009. We continue to expect the first production CIGS chambers to arrive in September of this year," he said.

Building the Commercial Production Line

DayStar's factory in Newark, Calif. is undergoing its initial fit-up, and the company expects this process to be completed in time to receive the initial production tools in September. Purchasing of the major tools for the production line is well under way, and the company has also engaged vendors to design and implement the automation systems required for high throughput operation.

"Although we will not give financial guidance today, I would like to point out that as we build out our factory, there will be significant costs involved that will affect our balance sheet, as we have discussed before. We will go into more detail on this in our second quarter financial results conference call in early August," Dr. DeLuca Said.

Organizational Structure

During DayStar's transition from a development stage company to an early-stage commercial manufacturing company, the company has flattened its organization, promoted from within and hired a group of highly qualified managers at the director and senior director level. "These changes were necessary to bring us through our transition as we build an organization focused on attaining manufacturing excellence," Dr. DeLuca said. "The additions of Ratson Morad as president and COO, and Bill Steckel as CFO, give us the foundation we need to take the technology we have developed and move us into commercial production. I am very proud of my entire management team," he said.

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/.

Forward Looking Statement

Certain statements contained in this press release, including, without limitation, statements regarding expectations of further technological development as well as, timing and ability to scale to production capacity and complete the build out of a production facility 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). These statements are only predictions based on assumptions that are believed to be reasonable at the time they are made and are subject to significant risks and uncertainties. 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 filed with the SEC on March 31, 2008 as well as other forms filed with the SEC. 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.