"This Daktronics video system will provide New York Jets' and New York Giants' fans with a truly 21st century game day experience," said John Mara, Giants President and Chief Executive Officer. "From the moment they enter the New Meadowlands Stadium for the 2010 football season, fans will experience a state-of-the-art system that includes more than 40,000 square feet of high resolution LED technology."

"One of the seating bowl's greatest features is the 103 feet by 30 feet video screens that will be embedded into each of the four 'cornerstones' which anchor the stadium," said Jets Chairman and Chief Executive Officer Woody Johnson. "The location and size of these screens were designed to maximize viewing pleasure without compromising the stadium's sightlines."

"Daktronics appreciates the opportunity to be involved with this breakthrough venue," said Jim Morgan, President and CEO of Daktronics. "One of the things that will distinguish the project in addition to its sheer scale is the ability to present unique content on each of 28 large-screen LED video displays located both inside and outside the stadium. Having 28 unique channels of content on large format LED video screens is unparalleled in the industry, and offers a limitless platform for promotions, sponsorships and added fan entertainment, benefiting both teams, the NFL and the New Meadowlands Stadium."

According to Giants Chairman and Executive Vice President Steve Tisch, "This will be the largest, fully integrated, high definition video display system ever installed in a stadium or public assembly facility. In an era of enhanced television and video experience, the video-centric design makes the stadium environment superlative -- the thrill of the live sporting event combined with the convenience of watching the game in your own living room."

The advanced digital display system will allow for both the New York Jets and New York Giants to customize their in-game presentations and their team branding and messages to maximize excitement and entertainment for their fans. Daktronics digital technology also provides flexibility, impact and interactivity for each team's corporate partners.

The Daktronics system will consist of multiple displays inside the seating bowl. Four large primary video displays, each measuring approximately 103 feet wide by 30 feet high, will be prominently positioned at the club level in the four corners of the seating bowl. One 360 degree LED ribbon board, game-in-progress displays, and play clocks will complement the primary video screens providing fans with additional information.

Outside the seating bowl, 20 vertically oriented displays will be mounted back-to-back on 10 pylons around the entrances to the facility. Three sizes of boards will be installed, measuring approximately 20 feet wide by 38 feet high, 20 feet wide by 48 feet high, and 20 feet wide by 54 feet high. Four large marquee displays, measuring approximately 32 feet wide by 18 feet high, will promote events to those passing by the stadium. Smaller ticket window displays will direct and inform ticket buyers.

The primary video screens and pylon displays will utilize Daktronics latest HD-X technology, installed recently for the Kansas City Royals and Arizona Diamondbacks major league ballparks. HD-X technology features ultra-wide viewing angles, increased contrast with deeper blacks and more vivid colors, and world-class video processing for improved image quality.

Site work on the new Meadowlands Stadium began in the spring of 2007. Installation of the first Daktronics displays is scheduled to begin in the late fall of 2008. The future home of the National Football League New York Jets and New York Giants will have seating for 82,500 fans, including more than 200 luxury suites, 9,200 club seats, two club lounges and four restaurants.

About Daktronics

Daktronics, celebrating 40 years in business in 2008, is recognized as the world's leading provider of full-color LED video displays. The company has equipment working in 26 of 31 NFL facilities. Daktronics began manufacturing large screen, full-color, LED video displays in 1997. Since then, over 4,700 large screen, full-color LED displays have been sold and installed in sports, entertainment and commercial facilities around the world. Since 2001, independent market research conducted by iSuppli Corp. lists Daktronics as the world's leading provider of large screen LED video displays.

Daktronics has strong leadership positions in, and is the world's largest supplier of, electronic scoreboards, computer-programmable displays, digital billboards, large screen video displays and control systems. The company excels in the control of large display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation and video. Daktronics designs, manufactures, markets and services display systems for customers around the world, in sport, commercial and transportation applications. For more information, visit the company's World Wide Web site at: http://www.daktronics.com, e-mail the company at sales@daktronics.com, call (605) 697-4300 or toll-free (800) 325-8766 in the United States or write to the company at 331 32nd Ave. PO Box 5128 Brookings, S.D. 57006-5128.

Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectation, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts, and other risks noted in the Company's SEC filings, including its Annual Report on Form 10-K for its 2007 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

SOURCE: Daktronics

Daktronics
Media Relations:
Mark Steinkamp, 605-697-4300
Marketing & Sales Support Mgr.
msteink@daktronics.com
or
Investor Relations:
Bill Retterath, 605-692-0200
Chief Financial Officer
bretter@daktronics.com
or
New Meadowlands Stadium
Rubenstein Communications, Inc.
Alice McGillion, 212-843-8039
amcgillion@rubenstein.com

Expected next investor conference call information:
Conference Call Date: 8/27/2008
Conference Call Time: 10:00 AM
Conference Call URL: http://investor.daktronics.com/events.cfm

Expected next dividend:
Dividend Announcement Date: 5/29/2008
Dividend Record Date: 6/10/2008
Dividend Pay Date: 6/24/2008
Dividend Amount: 0.09

"This quarter was a great start on achieving our goal of annual top line growth of more than 20 percent with a higher rate of growth in earnings," said Jim Morgan, president and chief executive officer. "We demonstrated the benefits of our ongoing initiatives to increase our throughput and improve our processes, as we set new records in quarterly sales and earnings. Our investments in lean manufacturing, design for manufacturability, inventory management, facilities and systems led to record levels for manufacturing throughput. We also continued to demonstrate our commitment to controlling operating expenses, which increased only slightly from the fourth quarter of fiscal 2008 after adjusting for the extra week in the fiscal 2009 first quarter."

Orders for the quarter were up over 15 percent as compared to the first quarter of fiscal 2008. This does not include the recently announced contract for the New Meadowlands Stadium, which is expected to exceed $45 million. All domestic business units benefited from order growth.

Morgan added, "Our Commercial business unit saw the highest growth rate at 29 percent in the first quarter of fiscal 2009 over the same period last year. This growth was lead by increases in the billboard niche and was partially offset by weakness in our Galaxy(R) product line sales. We attribute that primarily to economic conditions."

"Our Live Events business unit exceeded our expectations for sales during the quarter. This is a testimony to the effectiveness of our lean manufacturing efforts, and the reengineering of our video display products to optimize the manufacturing process. Orders rose 12 percent without the benefit of the New Meadowlands Stadium. We are optimistic about our chances of booking two additional large sports projects in the next quarter in addition to the New Meadowlands Stadium order," said Morgan.

Internationally, the company completed several large high profile projects that were booked in fiscal 2008, including the rail station project in Beijing, China and an 8-unit outdoor LED video display network in the United Kingdom which lead to record quarterly sales for the International business unit. Gross margins in the International business unit were higher than expected for the first quarter of fiscal 2009. "Due to the inherent volatility of the international market we expect that net sales will be down for the second quarter, but we remain optimistic about the growth opportunities for the rest of the fiscal year," said Morgan."

The company's Schools and Theaters business unit achieved order growth of more than 11 percent for the quarter, which is slightly ahead of plan. Morgan added, "Lead times in the business unit were stretched a little during the quarter, and sales lagged compared to expectations, but we intend to still meet our sales goals for the year."

Daktronics' Transportation business unit also experienced order growth ahead of plan and is up more than 15% for the first quarter of fiscal 2009 as compared to the same period one year ago.

Morgan concluded, "In addition to the progress we continue to make on improving our product designs and manufacturing processes to increase throughput and reduce costs, we are also making progress in restructuring our service organization to improve margins. These are all critical strategic initiatives for us, but the investment in these initiatives adds pressure on earnings in the short-term."

"Gross margin percents for the quarter were not as strong as expected due primarily to higher warranty costs and inventory write-downs," said Bill Retterath, chief financial officer. "As announced previously, we reorganized our sales and service organization which resulted in approximately $0.8 million of costs per quarter being transferred from selling expense into cost of goods sold in the first quarter of fiscal 2009. This also impacted gross margin percents as compared to prior periods."

Retterath added, "We are pleased with our control over operating expenses. Our largest cost is personnel expense and we have been extremely diligent in managing the growth while keeping in mind our long-term objectives. Operating costs rose only slightly on a sequential basis when the additional week of the quarter and the impact of reorganizing our field services organization are factored into the quarterly results. Finally, we are on track to be at or under budget for the year on capital expenses. We sold our production studio in Tampa, Florida, as we felt that the return on investment did not justify continued ownership. This resulted in a one-time, pretax gain of approximately $1 million. We will rent a portion of the building back for our Tampa operations."

Business Outlook

The company is reiterating its financial guidance for fiscal 2009. Daktronics expects that net sales will increase by more than 20 percent over fiscal 2008 and operating margin will range from 8.0 percent to 9.5 percent. The growth of net sales depends on a number of large contracts, particularly in our live events and international business units, which could cause this growth level to change. Operating margin may vary, primarily as a result of fluctuations in gross profit levels. This guidance is subject to a number of factors that could cause it to vary, and investors should refer to our filings with the Securities and Exchange Commission for a more complete list of risk factors.

Webcast Information

The company will host a conference call and webcast to discuss its financial results today at 10:00 am (Central Time). This call will be broadcast live at http://investor.daktronics.com and available for replay shortly after the event.

About Daktronics

Daktronics has strong leadership positions in, and is the world's largest supplier of, large screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation and video. Daktronics designs, manufactures, markets and services display systems for customers around the world, in Sport, Business, Schools and Theatres and Transportation segments. For more information, visit the company's World Wide Web site at: http://www.daktronics.com, e-mail the company at investor@daktronics.com, call (605) 692-0200 or toll-free (800) 843-5843 in the United States or write to the company at 201 Daktronics Dr., PO Box 5128 Brookings, S.D. 57006-5128.

Safe Harbor Statement

Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectation, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts, and other risks noted in the company's SEC filings, including its Annual Report on Form 10-K for its 2008 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Daktronics, Inc. and Subsidiaries
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
                                            Three Months Ended
                                            August 2,                  July 28,
                                            2008                       2007
Net sales                                   $     161,229              $     120,923
Gain on sale of Property                          977                        --
Cost of goods sold                                116,858                    84,044
Gross profit                                      45,348                     36,879
Operating expenses:
Selling                                           16,365                     14,844
General and administrative                        7,682                      6,002
Product design and development                    6,546                      4,756
                                                  30,593                     25,602
Operating income                                  14,755                     11,277
Nonoperating income (expense):
Interest income                                   536                        384
Interest expense                                  (106     )                 (426     )
Other income (expense), net                       (345     )                 (302     )
Income before income taxes                        14,840                     10,933
Income tax expense                                5,113                      3,822
Net income                                  $     9,727                $     7,111
Weighted average shares outstanding:
Basic                                             40,338                     39,638
Diluted                                           41,323                     41,260
Earnings per share:
Basic                                       $     0.24                 $     0.18
Diluted                                     $     0.24                 $     0.17
Cash dividend paid per share                $     0.09                 $     0.07

Daktronics, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
                                                                 August 2,
                                                                 2008                  April 26,
                                                                 (unaudited)           2008
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and restricted cash                       $      6,269          $     9,782
Accounts receivable, less allowance for doubtful accounts               75,545               56,516
Inventories                                                             62,132               50,525
Costs and estimated earnings in excess of billings                      29,875               27,126
Current maturities of long-term receivables                             8,162                7,435
Prepaid expenses and other                                              6,806                4,796
Deferred income taxes                                                   9,616                9,517
Total current assets                                                    198,405              165,697
Advertising rights, net                                                 3,277                3,457
Long-term receivables, less current maturities                          17,052               16,837
Investments in affiliates                                               2,307                2,998
Goodwill                                                                4,709                4,722
Intangible and other assets                                             3,031                3,102
Deferred income taxes                                                   143                  143
                                                                        30,519               31,259
PROPERTY AND EQUIPMENT:
Land                                                                    2,757                3,190
Buildings                                                               48,784               49,464
Machinery and equipment                                                 47,060               44,743
Office furniture and equipment                                          48,038               45,482
Equipment held for rental                                               2,329                2,658
Demonstration equipment                                                 7,704                7,516
Transportation equipment                                                5,989                6,106
                                                                        162,661              159,159
Less accumulated depreciation                                           66,046               (61,636  )
                                                                        96,615               97,523
TOTAL ASSETS                                                     $      325,539        $     294,479

Daktronics, Inc. and Subsidiaries
Consolidated Balance Sheets (continued)
(in thousands)
                                                                      August 2,
                                                                      2008                       April 26,
                                                                      (Unaudited)                2008
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                                      $     42,143               $     31,540
Accrued expenses and warranty obligations                                   27,718                     26,100
Current maturities of long-term debt and marketing obligations              907                        910
Billings in excess of costs and estimated earnings                          25,586                     24,560
Customer deposits                                                           15,898                     12,113
Deferred revenue                                                            9,715                      6,980
Income taxes payable                                                        4,412                      949
Total current liabilities                                                   126,379                    103,152
Long-term debt, less current maturities                                     55                         55
Long-term marketing obligations, less current maturities                    695                        646
Long-term warranty obligations and other payables                           3,671                      3,766
Deferred income taxes                                                       3,607                      3,607
                                                                            8,028                      8,074
TOTAL LIABILITIES                                                           134,407                    111,226
SHAREHOLDERS' EQUITY:
Common stock                                                                26,570                     25,638
Additional paid-in capital                                                  11,308                     10,398
Retained earnings                                                           154,004                    147,912
Treasury stock, at cost                                                     (9       )                 (9       )
Accumulated other comprehensive loss                                        (741     )                 (686     )
TOTAL SHAREHOLDERS' EQUITY                                                  191,132                    183,253
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                            $     325,539              $     294,479

Daktronics, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
                                                                   Three Months Ended
                                                                   August 2,                  July 28,
                                                                   2008                       2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                         $     9,727                $     7,111
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation                                                             5,884                      4,505
Amortization                                                             79                         79
(Gain) loss on sale of property and equipment                            (977     )                 (1       )
Stock-based compensation                                                 839                        608
Equity in earnings and losses of affiliates                              692                        526
Provision for doubtful accounts                                          111                        28
Deferred income taxes, net                                               (99      )                 (30      )
Change in operating assets and liabilities                               (12,532  )                 6,657
Net cash provided by operating activities                                3,724                      19,483
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                                       (7,534   )                 (13,343  )
Cash consideration paid for equity method investments                    --                         (750     )
Proceeds from sale of property and equipment                             2,713                      23
Net cash used in investing activities                                    (4,821   )                 (14,070  )
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on notes payable                                          --                         1,068
Proceeds from exercise of stock options and warrants                     176                        732
Excess tax benefits from stock-based compensation                        71                         177
Principal payments on long-term debt                                     --                         (12      )
Dividend paid                                                            (3,635   )                 (2,770   )
Net cash (used in) provided by in financing activities                   (3,388   )                 (805     )
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                  (38      )                 (37      )
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                         (4,523   )                 4,571
CASH AND CASH EQUIVIALENTS BEGINNING OF PERIOD                           9,325                      2,590
CASH AND CASH EQUIVALENTS END OF PERIOD                            $     4,802                $     7,161

Daktronics, Inc. and Subsidiaries
Sales and Orders By Segment
(in thousands)
(unaudited)
                                    Three Months Ended
                                    August 2,           July 28,
                                    2008                2007
Net sales
     Commercial                     $     48,390        $     42,341
     Live Events                          63,088              47,304
     Schools & Theatres                   16,980              17,462
     Transportation                       9,571               7,791
     International                        23,200              6,025
     Total Net Sales                $     161,229       $     120,923
Orders
     Commercial                     $     50,710        $     39,432
     Live Events                          59,165              53,027
     Schools & Theatres                   24,361              21,910
     Transportation                       10,159              8,785
     International                        12,875              13,231
     Total Orders                   $     157,270       $     136,385

SOURCE: Daktronics, Inc.

Daktronics, Inc. 
Investor Relations: 
Bill Retterath, 605-692-0200 
Chief Financial Officer 
Investor@daktronics.com

In the year-ago period, the company reported net income of $7.1 million, or 17 cents a share, on sales of $120.9 million.

Daktronics expects its 2009 revenue to rise more than 20% over 2008.

Shares of Daktronics closed Monday at $18.11. The stock is down 32% over the past 52 weeks. Ryan Vlastelica rv/cm

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