Leading Semiconductor Manufacturers Participate in Data I/O's Preferred Partnership Program

Leading Semiconductor Manufacturers Participate in Data I/O's Preferred Partnership Program

June 29, 2006

    REDMOND, Wash., June 29 /Xinhua-PRNewswire/ -- Data
I/O(R) (Nasdaq: DAIO), the leading provider of manual and
automated programming systems for programmable
semiconductor devices, has recently announced the second
member of its Preferred Partnership Program.  The company
is currently in talks with several other leading memory and
microcontroller companies and expects to make partnership
announcements in the near future with these companies.

    Under the terms of the Preferred Partnership Program,
Data I/O and its Preferred Partners will coordinate their
efforts to dedicate direct, focused resources for closer
customer support at the device level as well as local
sales, marketing and technical levels.  Preferred
Partnership Program benefits to mutual customers and
collaboration areas between Data I/O and its Preferred
Partners are summarized below:

     - Focused attention to increasing the quality of the
service and reduced 
       time-to-market.

     - Offering a full solution to end customers rather
than selling only a 
       device.

     - Providing global support to Preferred Partners and
mutual customers in 
       each geographic location.  

     - Helping multi-national OEM customers to link both
their design and 
       manufacturing in wireless, automotive, consumer
electronics, white 
       goods and process control markets.

     - Protecting Intellectual Property with Data I/O's
"Connected Strategy."

     - Helping both Preferred Partners and mutual customers
to improve 
       profitability and achieve lean manufacturing by
reducing RMAs and 
       introducing higher quality standards.

     - Educating mutual customers and encouraging the use
of partners' 
       products and solutions by arranging joint seminars
globally. 

     - Providing "Priority Device Support" for
Preferred Partners and their 
       customers.

     - Collaborating closely to develop and/or license
technology from each 
       other to offer full solutions and to reduce time to
market both for 
       Preferred Partners and their customers.

     - Collaborating closer between partners' sales/FAE
forces early enough to 
       address manufacturing related issues during design
phase.

    Data I/O's Preferred Partnership Program was introduced
in October 2005 as part of a shift in its business strategy.
 The purpose of the program is to address the growing
time-to-market issue both for semiconductor companies and
their customers and provide excellent support, products and
solutions.  

    "With the proliferation of semiconductor devices,
our business strategy has changed to focus our resources on
a handful of selected semiconductor partners to better serve
semiconductor companies and our mutual customers.  Data
I/O's Preferred Partnership Program is offered to  selected
semiconductor companies with similar or the same core values
as Data I/O," said Bruce Rodgers, Vice President of
Sales for Americas and Asia at Data I/O.

    Data I/O will invite only a few selected semiconductor
memory and microcontroller companies to join its Preferred
Partnership Program.  
    
    About Data I/O

    With more than 34 years of innovative leadership in
device programming solutions, Data I/O Corporation(R)
(Nasdaq: DAIO) provides manual and automated device
programming systems that specifically address the
requirements of engineering and manufacturing operations.
FlashCORE(TM) is the architecture behind a family of Flash
programmers that deliver the highest throughput and the
lowest cost per programmed device. The MultiSyte and
UniSite families provide universal support and versatility
to address a wide variety of programming needs. The
company's newest products are the ImageWriter line of
In-System Programming products, and the new FLX500
automated desktop device programming system. Data I/O
provides solutions beyond products, including a unique
Applications Services offering and global service and
support capability. Data I/O Corporation is headquartered
in Redmond, Washington. More information is available at
http://www.dataio.com or call 800-426-1045.

    Forward-Looking Statements

    All company and product names mentioned may be
trademarks or registered trademarks of their respective
holders and are used for identification purposes only. The
matters discussed in this news release include
forward-looking statements that are subject to risks and
uncertainties that may cause actual results to vary
significantly. These risks include market and competitive
factors, and other risks described in the Company's most
recent annual report and/or in any of its other filings
with the Securities and Exchange Commission. The Company
assumes no obligation to update the information in this
release. Reference to the Company's website above does not
constitute incorporation of any of the information thereon
into this press release.

    For moreinformation, please contact:

     Kennan M. Yilmaz
     Data I/O Corporation 
     Tel:   [phone]
     Email: [e-mail]
               
     Dennis McFarland
     Goldstein Group Communications
     Tel:   [phone]
     Email: [e-mail]
              
SOURCE  Data I/O Corporation