DayStar Technologies, Inc., a developer of solar photovoltaic products based on CIGS thin-film deposition technology, announced agreements to extinguish approximately $1 million in outstanding debts.

Socius CG II, Ltd. has entered into agreements with 14 of DayStar’s vendors pursuant to which Socius purchased approximately $1 million of the aggregate amount of debt, and then settled the resulting amounts owed in exchange for free-trading shares of DayStar’s common stock.

DayStar CEO Magnus Ryde, commented, “We are pleased to have Socius as a new financial partner as we pursue opportunities to manufacture our CIGS modules offshore. As we stated on July 22, 2010, we are pursuing partnerships to implement this strategy. Those potential partnerships, if consummated, could include joint ventures, licensing agreements, contract manufacturing agreements, a reverse merger with or an acquisition of DayStar. It is clear to us that we need to continue to restructure our balance sheet and reduce debt to achieve the best opportunity for increased shareholder value. We are making very significant progress on this important initiative.”