News

DayStar Technologies Delivers End-of-Year Customer Product Shipments and Meets NYSERDA Production Milestones

Halfmoon, N.Y. – January 19, 2006 – DayStar Technologies, Inc. (NASDAQ: DSTI), a developer and manufacturer of innovative Photovoltaic Foil™ products, today announced that the company shipped product to its German and Chinese customers and completed two key production milestones for its NYSERDA production incentive award.

On December 30, 2005, Daystar completed shipments of its TerraFoil™ and TerraFoil-SP™ solar cells.   Nearly 500,  10cm x 10cm TerraFoil™ cells were shipped to Titan Energy in India, the contract PV module manufacturer of DayStar’s first commercial customer, Blitzstrom GmbH, in Germany.  A second shipment of over 300 cells, including a variety of smaller size TerraFoil-SP™ solar cells, was provided to Micro Energy Group (MEG) of Zuhai, China, DayStar’s second commercial customer.  These cells will be used to produce a series of unique PV module prototypes for use in MEG’s expanding line of solar powered consumer products.

Along with recent additional cell shipments, the end-of-year product manufacturing contributed to the successful completion of two key production task milestones (one for cell efficiency and the other for daily production volume) for DayStar’s New York State Energy Research and Development Authority (NYSERDA) Phase 3 Program Opportunity Notice (PON) 827.  Achieving these two tasks allows the company to collect an additional $200,000 in award grants.

Terry Schuyler, DayStar’s Vice President of Sales and Marketing, commented, “These initial customer deliveries, along with the NYSERDA production award, mark significant and important Company milestones. This is an important first step toward improving and expanding our production capacity.”

About DayStar Technologies, Inc.
DayStar Technologies, Inc. is an emerging leader in low cost, high efficiency Photovoltaic Foil™ that converts sunlight into energy. The Company manufactures CIGS solar cells, which are deposited on flexible metal foils using production processes adapted from computer component manufacturing. 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 http://www.daystartech.com.

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-K 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.

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