DATA I/O CORP — Director's Dealing 2006

May 26, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DATA I/O CORP (DAIO)
CIK: 0000351998
Period of Report: 2006-05-24

Reporting Person: HATLEN JOEL S (Chief Financial Officer)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-05-24	Non-Qualified Stock Option (right to buy)	$3.88	A	15000	Acquired	2012-05-24	Non-Qualified Stock Option (right to buy) (15000)	Direct

Footnotes

F1: The stock option becomes exercisable in 16 equal quarterly installments, commencing one quarter after the date of grant.