SANTA CLARA, Calif. (Map) - SANTA CLARA, Calif., April 30 /PRNewswire-FirstCall/ -- DayStar Technologies, Inc. (Nasdaq: DSTI), a developer of photovoltaic products based on CIGS thin film semiconductor technology, today announced financial results for the first quarter of 2008, ended March 31, 2008.

DayStar reported cash, cash equivalents and short-term investments of $56.3 million at the end of the first quarter, compared with $61.4 million at the end of the fourth quarter of 2007. Except for operating accounts, all cash is invested in treasury instruments. The company had total liabilities of $3.9 million, and total stockholders' equity was $62.2 million.

Net loss in the first quarter of 2008 was $4.5 million or a loss of $0.14 per share, compared with a net loss of $17.9 million or a loss of $1.43 per share in the first quarter of 2007. The decrease in net loss is due primarily to non-cash expenses recognized on the restructuring and ultimate conversion to equity in Q1 2007 of a $15 million convertible note. The net loss in the first quarter of 2008 was primarily due to operating costs associated with the development and preparation for commercialization of our CIGS PV products and manufacturing technologies.

"We are pleased to announce that we have leased a building in Newark, Calif., to house our 25 megawatt manufacturing facility," said Dr.

Stephan DeLuca, chief executive officer. "This building is ideal for DayStar's first manufacturing line and we continue to believe we are on track to have our production up and running in Q1 2009. We are also excited that Big Baby, the platform for scaling up our deposition processes, is now in its initial test phase and is performing to our expectations."

Conference Call

DayStar will hold its first quarter conference call today, Wednesday, April 30, 2008, at 2 pm Pacific time. To listen to the call, dial (210) 234-0003 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 (402) 220-4095.

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, 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 filed with the SEC on March 31, 2008. 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) BALANCE SHEETS March 31, December 31, 2008 2007 ASSETS Current Assets: Cash and cash equivalents $41,132,476 $61,365,559 Investments 15,129,317 - Other current assets 395,173 666,511 Total current assets 56,656,966 62,032,070 Property and Equipment, at cost 15,869,547 14,911,021 Less accumulated depreciation and amortization (6,524,818) (5,774,823) Net property and equipment 9,344,729 9,136,198 Other Assets 58,041 72,427 Total Assets $66,059,736 $71,240,695 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $2,158,086 $2,622,968 Notes and capital leases payable, current portion 176,551 174,996 Total current liabilities 2,334,637 2,797,964 Long-Term Liabilities: Notes and capital leases payable 124,755 171,983 Deferred revenue 420,000 420,000 Stock warrants 980,065 2,771,090 Total long-term liabilities 1,524,820 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; 32,817,012 and 32,621,262 shares issued and outstanding at March 31, 2008 and December 31, 2007, respectively. 328,170 326,213 Additional paid-in capital 136,887,969 135,387,049 Accumulated deficit (10,145,391) (10,145,391) Deficit accumulated during the development stage (64,972,710) (60,488,213) Accumulated other comprehensive income 102,241 - Total stockholders' equity 62,200,279 65,079,658 Total Liabilities and Stockholders' Equity $66,059,736 $71,240,695 DAYSTAR TECHNOLOGIES, INC. (A DEVELOPMENT STAGE ENTERPRISE) STATEMENTS OF OPERATIONS For the Three Months Ended March 31, 2008 2007 Revenue: $- $- Costs and Expenses: Research and development 2,980,223 2,293,632 Selling, general and administrative 2,737,286 1,401,079 Restructuring - 1,382,801 Depreciation and amortization 753,947 694,391 Total costs and expenses 6,471,456 5,771,903 Other Income (Expense): Other income 208,385 43,214 Interest expense (12,451) (88,058) Amortization of note discount and financing costs - (3,800,588) Gain (loss) on derivative liabilities 1,791,025 (2,206,754) Loss on extinguishment of debt - (6,091,469) Total other income (expense) 1,986,959 (12,143,655) Net Loss $(4,484,497) $(17,915,558) Weighted Average Common Shares Outstanding (Basic And Diluted) 32,760,465 12,570,489 Net Loss Per Share (Basic and Diluted) $(0.14) $(1.43)