Data I/O Announces Completed Sale and License Back of Patents

Data I/O Corporation (NASDAQ: DAIO), the leading provider of manual and automated device programming systems, announced today that it has completed on March 18, 2008 the sale of selected patents and patent applications to Leannoux Properties AG L.L.C. for net proceeds of approximately $3.3M and expects to report a net gain of approximately $2.1M. The patents and patent applications sold related primarily to technology used in Data I/O Corporation's ProLINE-RoadRunner product line. Data I/O retains a non-exclusive, royalty-free license to use the technology covered by these patents and applications. Additional payments are due to Data I/O Corporation upon license or transfer of the proposed patents and patent applications to certain third parties. However, Data I/O Corporation does not currently anticipate receiving any such payments.

Most of the patents sold relate to technology that the company has been practicing for a number of years. The sale does not include technology related to the firm's most recent development programs.

Regarding the transaction, Fred Hume, President and CEO of Data I/O Corporation, said, "This transaction delivers a substantial financial benefit to our shareholders. It monetizes the value of these patents, avoids future annual maintenance and patent defense expenses, and allows Data I/O royalty-free use of these patents."

About Data I/O Corporation

With over 35 years of expertise in delivering intellectual property to programmable devices, Data I/O offers complete, integrated manufacturing solutions in wireless, automotive, programming center, semiconductor, and industrial control market segments for OEM, ODM, EMS and semiconductor companies. Data I/O provides hardware and software solutions for turn-key programming and device testing services, as well as in-system (on-board), in-line (right before use at the SMT line), or in-socket (off-line) programming with special manufacturing options such as serialization, traceability, version control, statistical data logging, co-planarity test, and bad block management. These solutions are scalable for small, medium and large volume applications with different device mixes. For further information on Data I/O, please visit www.dataio.com or call (425) 881-6444.

Forward-Looking Statement

Statements in this report concerning estimated gains and expectations of future payments and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. These factors include uncertainties as to estimated costs and future licensing expectations and other risks including those described from time to time in the Company's filings on Forms 10K and 10Q with the Securities and Exchange Commission (SEC), press releases and other communications.

Contact: Joel Hatlen Vice President and Chief Financial Officer (425) 881-6444 Data I/O Corporation 6464 185th Ave. NE, Suite 101 Redmond, WA 98052