A press release made on April 23, 2009 follows:

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6464 185TH Ave. N.E., Suite 101

Redmond, WA 98052

Tel: (425) 881-6444

Fax:(425) 881-6856

For information please contact:

Joel Hatlen

Vice President and Chief Financial Officer

Data I/O Corporation

(425) 881-6444

Redmond, Wash., April 23, 2009 - Data I/O Corporation (NASDAQ: DAIO), the leading provider of manual and automated device programming systems, today announced financial results for the first quarter ended March 31, 2009.

Revenues for the first quarter of 2009 were $4.4 million, compared with $6.2 million in the first quarter of 2008. In accordance with U.S. generally accepted accounting principles (GAAP), net loss in the first quarter of 2009 was ($464,000), or ($0.05) per share, compared with net income of $2.6 million or $0.29 per diluted share in the first quarter of 2008. (The first quarter of 2008 included a patent sale gain of $2.1 million.) The company's cash position improved by $1.1 million during the first quarter, with cash at March 31, 2009 at $14.4 million compared to $10 million at March 31, 2008. Net income for the first quarter of 2009 includes equity compensation expense under FAS 123R of $94,000 which compares with $94,000 for the first quarter of 2008.

Gross margin as a percentage of sales in the first quarter of 2009 was 55.7 percent, compared with 60.8 percent in the first quarter of 2008. This gross margin percentage decline was primarily due to impact of decreased sales volume relative to fixed operating costs and the impact of the strengthened U.S. dollar on amounts translated from Euros. Backlog at the end of the quarter was $1.2 million.

Conference Call Information

A conference call discussing the first quarter of 2009 financial results will follow this release today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To listen to the conference call, please dial (703) 546-4242 passcode: DAIO. 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, please dial (320) 365-3844, access code: 995952. The conference call will also be simultaneously webcast over the Internet; visit the News and Events section of the Data I/O Corporation website at http://www.dataio.com to access the call from the site. This webcast will be recorded and available for replay on the Data I/O Corporation website approximately two hours after the conclusion of the conference call.

About Data I/O Corporation

With over 35 years of expertise in delivering intellectual property to programmable devices, Data I/O offers complete, integrated manufacturing solutions in wireless, automotive, programming center, semiconductor, and industrial control market segments for OEM, ODM, EMS and semiconductor companies. Data I/O provides hardware and software solutions for turn-key programming and device testing services, as well as in-system (on-board), in-line (right before use at the SMT line), or in-socket (off-line) programming. These solutions are scalable for small, medium and large volume applications with different device mixes. Data I/O Corporation has headquarters in Redmond, Wash., with sales and services worldwide. For further information, visit the company's website at http://www.dataio.com.

Forward Looking Statement

Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such

 - Summary Financial Data Attached -




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(in thousands except per share data)               First Quarter
                                                                 Percent
                                            3/31/2009 3/31/2008  Change
Net sales                                     $4,383     $6,188   -29.2%
Gross margin                                   2,443      3,761   -35.0%
Gross margin as percent of sales                55.7%      60.8%   -5.1%
Operating expenses:
Research & development                         1,033      1,099    -6.0%
Selling, general and administrative            1,676      2,027   -17.3%
Provision for business restructure                22          9
Total operating expenses                       2,731       3135   -12.9%
Gain on sale                                       1      2,115
Operating income(loss)                          (287)     2,741
Non-operating income (expense)                   (49)       (67)
Income(loss) from operations before taxes       (336)     2,674
Income tax expense(benefit)                      128         32
Net income(loss)                               ($464)    $2,642

Total diluted earnings(loss) per share        ($0.05)     $0.29

Diluted weighted average shares outstanding    8,876      9,033