HOPKINS, Minn., March 29 /PRNewswire-FirstCall/ --

2006 2005 Net sales $9,983,086 $8,104,646 Cost of sales 7,710,100 6,552,155 Gross profit 2,272,986 1,552,491 Net income (loss) attributable to common shareholders 741,702 120,844 Net income (loss) per share attributable to common shareholders - basic $ 0.08 $ 0.01 Net income (loss) per share attributable to common shareholders - diluted $ 0.07 $ 0.01

Total revenues for 2006 were $9,983,086, compared to $8,104,646 for 2005. The Company's net sales increased by approximately 23% in 2006 from 2005, compared to an increase in net sales of 10% in 2005 from 2004. Gross profit was $2,272,986, or 23% for 2006, compared to $1,552,491 or 19% in 2005. Net income attributable to common shareholders during 2006, was $741,702, or $.08 per basic and $.07 per diluted share, compared to a net income attributable to common shareholders of $120,844, or $.01 per basic and diluted share for 2005. Sales increased overall during 2006 compared to the same period in 2005 due to a significant increase in sales to the Company's largest customer, which management does not anticipate will be repeated during 2007. Management is cautiously optimistic about the Company's future prospects and intends to be aggressive in responding to changes in economic conditions to fulfill its obligation to provide prudent fiscal management by focusing on its profitable strengths and advantages in order to increase sales and profitability over the long term. The Company has no intention of issuing any specific performance guidance for future periods.

MagStar Technologies, Inc. ("MagStar" or the "Company") (BULLETIN BOARD: MGST) is a publicly owned company headquartered in Hopkins, Minnesota. The Company's stock is quoted on the Over-The-Counter Bulletin Board under the symbol "MGST". MagStar is a manufacturer of conveyors, motion control devices, spindles, and custom servo motors. MagStar's primary product is Quickdraw brand conveyor systems, used in factory and laboratory automation. MagStar also manufactures customized motion control products (custom servo motors and linear slides), disposable based medical centrifuges and devices, and its other proprietary product, oil centrifuges. Products manufactured by MagStar are used in high tech manufacturing, laboratory and pharmaceutical processes, electronics assembly, surgical procedures, and laboratory processes.

The information in this discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding the Company's capital needs, business strategy and expectations. Any statements that are not of historical fact may be deemed to be forward-looking statements. These forward-looking statements involve substantial risks and uncertainties. Actual events or results may differ materially from the anticipated results or other expectations expressed in the forward-looking statements. In evaluating these statements, you should consider various factors, including the risks included from time to time in other reports or registration statements filed by the Company with the United States Securities and Exchange Commission. These factors may cause the Company's actual results to differ materially from any forward-looking statements. The Company disclaims any obligation to publicly update these statements, or disclose any difference between actual results and those reflected in these statements.

CONTACT: Jon Reissner, President and Chief Executive Officer of MagStar,
+1-952-935-6921 or jonlreissner@magstar.com

Web site: http://www.magstar.com/