DayStar Technologies Praises Solar 
Provision in U.S. Energy Bill

Record Tax Incentive Indicates Bright 
Future for U.S. Solar Industry 

HALFMOON, NY (08/09/05) -- DayStar Technologies, Inc. (Nasdaq: DSTI), a developer and manufacturer of low cost, high-efficiency silicon-free solar cells that converts sunlight into energy, praised the U.S. energy bill passed today for providing a 30% tax credit for business or residential purchases of "photovoltaic equipment."

The new incentive directly impacts DayStar's TerraFoil(TM) solar cells, which are designed for use in a wide range of products, including traditional flat-plate power modules to provide electricity for residential and commercial structures.

"Government support in the form of solar investment tax credits and other financial instruments in Europe and Asia have successfully led to strong industry growth and, in the case of Japan, a self-sustaining solar energy market as subsidy programs are phased out," said Dr. John Tuttle, DayStar's Chairman and CEO. "Clearly these tax credits work to create self-supporting markets and DayStar looks forward to helping the U.S. energy market reach that point."

The bill provides 30% credit for qualifying residential purchases up to $31 million, and the same credit for business purchases up to $222 million.

About DayStar Technologies, Inc.

DayStar Technologies, Inc. is an emerging leader in low cost, high efficiency Photovoltaic Foil(TM) that converts sunlight into energy. The Company's patented and proprietary products include silicon-free CIGS solar cells, which are deposited on flexible metal foils using production processes adapted from commodity computer component manufacturing. 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.

Photovoltaic Foil(TM), PV Foil(TM), TerraFoil(TM), TerraFoil-SP(TM) and LightFoil(TM) are registered trademarks of DayStar Technologies, Inc.

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.