About MathStar, Inc.

MathStar is a fabless semiconductor company offering best in class, high-performance programmable logic solutions. MathStar's field programmable object array (FPOA) can process arithmetic and logic operations at 1 gigahertz clock rates, which is up to four times faster than even the most advanced FPGA architectures in many applications. MathStar's Arrix family of FPOAs are high-performance programmable solutions that enable customers in the machine vision, high-performance video, medical imaging, security & surveillance and military markets to rapidly and cost effectively innovate and differentiate their products. FPOAs are available now and are supported by development tools, IP libraries, application notes and technical documentation. For more information, please visit www.mathstar.com.

SOURCE MathStar, Inc.

http://www.mathstar.com

About MathStar

MathStar is a fabless semiconductor company offering best-in-class, high performance programmable logic solutions. MathStar's Field Programmable Object Array (FPOA) can process arithmetic and logic operations at clock rates at 1 gigahertz, which is up to four times faster than even the most advanced FPGA architectures in many applications. MathStar's Arrix family of FPOAs are high- performance programmable solutions that enable customers in the machine vision, high-performance video, medical imaging, security & surveillance and military markets to rapidly and cost effectively innovate and differentiate their products. FPOAs are available now and are supported by development tools, IP libraries, application notes and technical documentation. For more information, please visit www.mathstar.com.

Forward-Looking Statements

Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of Section 21E the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about MathStar and its industry and include, but are not limited to, those set forth in the section of MathStar's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2008 under the heading "Risk Factors." MathStar undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

SOURCE MathStar, Inc.

http://www.mathstar.com/

"Semico's ongoing examination of the semiconductor industry convinces us that a burgeoning new class of programmable logic merits explicit callout," said Richard Wawrzyniak, senior market analyst, ASIC & SoC, Semico Research Corp. "Like other programmable logic devices, FPCAs are programmable and reconfigurable. However, FPCAs are differentiated from devices such FPGAs by a combination of very high performance, a coarse grained architecture, and a unique approach to interconnecting the computing elements to enable high performance, low cost, and low power consumption. These attributes are fundamental to enabling growth in markets such as broadcast video and wireless networks."

The report is available for purchase from Semico Research Corp. at http://www.semico.com/studies/moreinfo.asp?id=1051&cid=4.

About MathStar, Inc.

MathStar is a fabless semiconductor company offering best in class, high-performance programmable logic solutions. MathStar's field programmable object array (FPOA) can process arithmetic and logic operations at 1 gigahertz clock rates, which is up to four times faster than even the most advanced FPGA architectures in many applications. MathStar's Arrix family of FPOAs are high-performance programmable solutions that enable customers in the machine vision, high-performance video, medical imaging, security & surveillance and military markets to rapidly and cost effectively innovate and differentiate their products. FPOAs are available now and are supported by development tools, an expanding portfolio of IP cores, application notes and technical documentation. For more information, please visit http://www.mathstar.com.

About Semico Research Corp.

Semico Research Corporation is a marketing and consulting research company specializing in all aspects of the semiconductor industry. Manufacturers, vendors, service providers, technology professionals and market specialists, worldwide, utilize Semico's experienced staff and in-depth research to support critical business, product and technology decisions. Semico's vision is derived from both a deep technology understanding and comprehensive research, which examines each segment of the supply chain for each market. Regular and ongoing end-user demand and primary research surveys are the foundation of the analysis, enabling Semico to provide insightful market analysis and guidance on future market opportunities.

Semico is a strategic partner with leading companies throughout the semiconductor industry, with access to an extensive worldwide electronic network, technology databases and expert personnel. Semico was founded in 1994 by a group of semiconductor industry experts and has offices in Phoenix, California, New York, Japan and Taiwan.

Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of Section 21E the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about MathStar and its industry and include, but are not limited to, those set forth in the section of MathStar's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2008 under the heading "Risk Factors." MathStar undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

SOURCE MathStar, Inc.

http://www.mathstar.com

Net loss in the first quarter was $5,393,000 or $0.12 per share, compared with a net loss of $5,447,000 or $0.26 per share, in the same period last year.

The company has scheduled its first quarter 2008 financial results conference call for Thursday, May 8, 2008 at 1:30 p.m. Pacific time. To listen to the call, please dial 303-205-0055 or 800-257-2182. A replay of the call will be made available on the company's website at http://www.mathstar.com.

About MathStar, Inc.

MathStar is a fabless semiconductor company offering best-in-class, high performance programmable logic solutions. MathStar's Field Programmable Object Array (FPOA) can process arithmetic and logic operations at clock rates at 1 gigahertz, which is up to four times faster than even the most advanced FPGA architectures in many applications. MathStar's Arrix family of FPOAs are high-performance programmable solutions that enable customers in the machine vision, high-performance video, medical imaging, security and surveillance and military markets to rapidly and cost effectively innovate and differentiate their products. FPOAs are available now and are supported by development tools, IP libraries, application notes and technical documentation. For more information, please visit http://www.mathstar.com.

Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about MathStar and its industry and include, but are not limited to, those set forth in the section of MathStar's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2008 under the heading "Risk Factors." MathStar undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

                                MathStar, Inc.
                    Condensed Consolidated Balance Sheets
                                 (Unaudited)
                    (in thousands, except per share data)

                                                      December 31,   March 31,
                                                         2007           2008
    Assets
    Current assets
      Cash and cash equivalents                         $4,339         $3,021
      Restricted cash                                      107            109
      Investments in marketable
       securities - short term                          22,200         20,568
      Accounts receivable                                  271            106
      Inventory                                            623            883
      Prepaid expenses and other current assets          1,326          1,056
        Total current assets                            28,866         25,743
    Property and equipment, net                            557            533
    Investments in marketable securities - long term     2,599
    Other assets                                           435            380
       Total assets                                    $32,457        $26,656

    Liabilities and Stockholders' Equity
    Current liabilities
      Accounts payable                                    $930           $670
      Deferred revenue                                     162             33
      Accrued expenses                                   1,416          1,356
        Total current liabilities                        2,508          2,059
      Other long term liabilities                          453            453
        Total liabilities                                2,961          2,512


    Stockholders' equity
      Preferred stock, $0.01 par value; 10,000
       shares authorized; no shares issued
       and outstanding                                       -              -
      Common stock, $0.01 par value; 90,000 shares
       authorized; 45,907 and 45,907 shares issued
       and outstanding at December 31, 2007 and
       March 31, 2008, respectively                        459            459
      Additional paid-in capital                       155,539        155,673
      Accumulated deficit                             (126,502)      (131,895)
      Accumulated other comprehensive loss                   -            (93)
        Total stockholders' equity                      29,496         24,144

        Total liabilities and stockholders' equity     $32,457        $26,656



                                MathStar, Inc.
               Condensed Consolidated Statements of Operations
                                 (Unaudited)
                    (in thousands, except per share data)

                                                         Three Months Ended
                                                               March 31,
                                                          2007          2008

    Revenue                                                $92           $226
    Cost of sales                                           69            291
      Gross profit (loss)                                   23            (65)
    Operating expenses:
      Research and development                           3,125          3,552
      Selling, general and administrative                2,462          2,093
                                                         5,587          5,645
        Operating loss                                  (5,564)        (5,710)
    Interest income                                        119            280

    Other income, net                                       (2)            37

        Net loss                                       $(5,447)       $(5,393)


    Basic and diluted loss per share                    $(0.26)        $(0.12)
    Weighted average basic and diluted
     shares outstanding                                 20,897         45,907

SOURCE MathStar, Inc.

http://www.mathstar.com