News

DayStar Technologies Makes Two Principal Payments On Senior Convertible Note

Halfmoon, NY – December 15, 2006 – DayStar Technologies, Inc. (NASDAQ:DSTI), a developer and manufacturer of innovative CIGS Photovoltaic Foil™ products, today announced that it has made its fourth scheduled principal payment of $1,875,000 on its Senior Convertible Note and an additional $500,000 principal payment at the Investor’s request.

Specifically, on December 11, 2006, DayStar issued 337,753 shares of the Company’s Common Stock in satisfaction of the fourth scheduled principal payment.  In addition, on December 14, 2006 DayStar issued 97,614 shares of Common Stock, in satisfaction of the Investor’s Optional Redemption Notice received on November 30, 2006, requesting a $500,000 principal drawdown.  As a result of these payments, $285,733 in escrowed funds have been released to DayStar, and are immediately available for use in operations, with an additional release of  $150,000 in escrowed funds pending consent from the Investor.

The $15 million Senior Convertible Note was issued to an institutional investor in connection with the Private Placement transaction entered into on May 25, 2006.

After these payments, the remaining principal on the Senior Convertible Note is $8.5 million.

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-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.

FOR MEDIA RELATIONS INQUIRIES, PLEASE CONTACT
Erica Dart, DayStar Technologies
518-383-4600 ext. 419 or via email edart@daystartech.com

FOR INVESTOR RELATIONS INFORMATION, PLEASE CONTACT
Dodi Handy, Elite Financial Communications Group
407-585-1080 or via email dsti@efcg.net