August 17, 2006

Daystar Technologies Executing On 2006 Milestones

By: by Erica Dart, DayStar Technologies


Halfmoon, NY — (PR Newswire) — August 17, 2006  — Dr. John Tuttle, Chairman and CEO of DayStar Technologies, Inc. (NASDAQ: DSTI), a developer and manufacturer of solar cells on flexible media, today released an operational update detailing progress that has been made by DayStar over the past several months.  Dr. Tuttle stated:

“In my last update I provided a list of milestones that we are now targeting to advance our Company Mission.  DayStar has become highly focused on the goals and associated tasks required to achieve these important metrics.  Our operational strategy and refined internal organization are truly reflective of our transition from a pilot stage development company to a commercial stage manufacturing company.

“During the second quarter, we made significant progress in developing our Gen II manufacturing line capacity, targeted at the goal of reaching commercial-scale manufacturing.  We are now operating this line with multiple production shifts.  Recent enhancements in our manufacturing equipment include the addition of new production hardware to increase throughput, as well as a Class 10,000 rated clean room that has enhanced our product yield.  We have also significantly advanced our production line process management with the addition of a Manufacturing Enterprise System (MES) with Statistical Process Control (SPC) capability.  The combination of these new tools and process refinements are enabling us to further optimize our production throughput, yield and product quality.  As we reported earlier, we have demonstrated TerraFoiläcell performance using our Gen II production line that exceeds our targets.  Consequently, we remain on track to realize our goal of greater than 10 percent mean average cell efficiencies.

“To further support our transition plans, we relocated our Gen I, R&D line to another building in our Halfmoon location.  This newly leased 8400 square foot building also provides us additional floor space for incoming tools to support expanded LightFoiläcell fabrication, as well as prototype packaging development for unique TerraFoil-SPäproducts.  Likewise, plans are now completed for the footprint and building requirements of our much larger Gen IIIämanufacturing facility that we are planning to locate at the Saratoga Technology+ Energy Park next year.

“Looking to the West, we are on our way to producing our first Gen IIIäproduction system.  We have completed the fit up of our Santa Clara equipment manufacturing plant and now have several production test tools under construction, keeping us on track for the construction of our first 10 MW platform.  Along with more than a dozen new engineers and technicians in this facility, we are rapidly approaching the century mark for full time staff Company wide.

“In the area of financing, we completed a $15 million private placement to help fund expansion efforts and ongoing operations. We have also been closely monitoring our stock performance compared to the broader market.  We believe that our stock price decline is based on the recent downturn in the renewable energy sector as a whole.  While no one can predict the stock market, we are confident that as DayStar continues to demonstrate progress, the summertime market doldrums draw to a close, and our market sector regains general market traction, our stock price will rebound.

“To protect our innovations and corporate messaging we have filed three Provisional Patent Applications with two Additional Provisional Applications nearing submission.  From these efforts, we anticipate 12 - 16 new patents will result to augment the seven presently undergoing advance stage examinations in the US Patent and Trademark Office.  We have 18 trademarks submissions, many of which are now in the advanced examination stage as well.

“On the sales front, we recently hosted on-site meetings with, as well as visited both of our primary customers to explore progress with the various designs and uses of our cells.  We are also negotiating with several potential strategic partners for the advancement of traditional PV module products as well as new innovative product concepts with the objective of better leveraging the many unique performance and form factor attributes of our line of solar cells.  Initial feedback from these efforts is very encouraging and, if successful, will further support and accelerate our path to market.

“In general, this has been a very productive summer for us and to celebrate the individual and team efforts from all areas across our Company, we hosted our first annual Company Appreciation Week.  We were honored to kick start this week of activity by a visit from Senator Hillary Rodham Clinton.  The Senator spoke to our management team and toured our facility to observe production in full swing.  She concluded her visit with a media speech on her energy policies and acknowledged DayStar’s leadership and progress toward a sustainable energy future.  Nearly 150 employees, friends, and family were able to greet and meet and share her inspiring message.

“To conclude, I would like to also recognize the patience and continued support of all of our stakeholders during a time of instability in our investment sector.  All of our local government officials, academic partners, advisors and Board of Directors, customers, pending partners and shareholders have demonstrated their faith in our efforts and belief in our roadmap.  We are confident in the fundamentals of our technology, our continued progress to completing our 2006 milestones, the strength of our markets, and the leadership of our management team in achieving our milestones.  Together we will continue to realize our goals and make tangible steps toward our vision of making free energy affordableä.”

About DayStar Technologies, Inc.

DayStar Technologies, Inc. is an emerging leader in low cost, high efficiency PhotovoltaicFoil™ that converts sunlight into energy. The Company manufactures CIGS solar cells, which are deposited on flexible metal foils using production processes adapted from the semiconductor and magnetic drive industries. As an alternative to wafer-silicon solar cells, DayStar believes the unique combination of its CIGS solar cell design coupled with proprietary manufacturing processes on flexible metal substrates could substantially lower costs and remove deployment barriers currently limiting large adoption of solar energy.  For more information on the Company, please visit

SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future, " "plan" or "planned, " "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including risks that our products may not achieve customer acceptance or that they will not perform as expected, and other risks identified in our annual report on Form 10-KSB and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and DayStar Technologies Inc. undertakes no obligation to update such statements.