DATA I/O CORP — Director's Dealing 2007

May 11, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DATA I/O CORP (DAIO)
CIK: 0000351998
Period of Report: 2007-05-09

Reporting Person: GARY PAUL A (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-05-09	Common Stock	M	7500	$2.20	Acquired	109657	Direct
2007-05-09	Common Stock	S	7500	$3.35	Disposed	102157	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-05-09	Non-Qualified Stock Option (right to buy)	$2.20	M	7500	Disposed	2007-06-19	Non-Qualified Stock Option (right to buy) (7500)	Direct

Footnotes

F1: This option vests quarterly over a three year period.