DATA I/O CORP — Director's Dealing 2008

May 7, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DATA I/O CORP (DAIO)
CIK: 0000351998
Period of Report: 2008-05-06

Reporting Person: GARY PAUL A (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-05-06	Common stock	M	5000	$1.251	Acquired	71100	Direct
2008-05-06	Common stock	S	1400	$5.62	Disposed	69700	Direct
2008-05-06	Common stock	S	2000	$5.61	Disposed	67700	Direct
2008-05-06	Common stock	S	600	$5.60	Disposed	67100	Direct
2008-05-06	Common stock	S	1000	$5.54	Disposed	66100	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-05-06	Non-Qualified Stock Option (right to buy)	$1.251	M	5000	Disposed	2008-05-15	Non-Qualified Stock Option (right to buy) (5000)	Direct

Footnotes

F1: This option vests quarterly over a three year period