Dataram Reports Fiscal 2009 First Quarter Financial Results

PRINCETON, N.J.--(Business Wire)--
Dataram Corporation (NASDAQ: DRAM) today reported its financial
results for its fiscal first quarter ended July 31, 2008. Revenues for
the first quarter were $7,563,000, which compares to $7,045,000 for
the prior quarter and $8,617,000 for the comparable prior year period.

John H. Freeman, Dataram's president and CEO commented, "There has
been some relief from the severe pressure on the selling prices of
computer memory experienced during our last fiscal year. As a result,
we have been able to achieve quarterly revenue growth for the last two
quarters. While we achieved a sequential quarterly growth rate of
approximately 7% this fiscal quarter, driving further meaningful
revenue growth remains a top priority."

Mr. Freeman continued, "As I recently stated in our Fiscal 2008
annual report, the Company's Board of Directors and I are implementing
a strategy to introduce new and complementary products into our
offerings portfolio and our plan for this fiscal year calls for a
large portion of the profits derived from our memory solutions
business to finance the expenses and investments required for this
effort. We are currently focusing on the development of certain high
performance storage products. In our fiscal first quarter, we incurred
approximately $244,000 of total expense in that area, of which,
approximately $121,000 represented a non-cash expense for stock
options issued to a privately held company to acquire certain of their
patents and other intellectual property. We expect to make further
investments in this area."

The Company incurred a net loss for the first quarter of the
current fiscal year of $606,000, or $0.07 per diluted share, which
compares to net earnings of $406,000, or $0.05 per diluted share for
the comparable prior year period. In addition to the expenses
discussed above, the current fiscal year's first quarter net loss
includes a charge to selling, general and administrative expense of
approximately $716,000 related to a retirement agreement entered into
with the Company's former chief executive officer. Of this amount,
approximately $660,000 relates to payments defined in the agreement
and the balance consists primarily of legal fees incurred by the
Company associated with this matter. Management expects no further
costs will be incurred for this matter.

The Company accrues federal and state income taxes at a combined
rate of approximately 39 percent. However, since the Company entered
the fiscal year with a federal net operating loss ("NOL") carryforward
of approximately $1.5 million, the Company actually pays income taxes
at a rate of approximately 10 percent as it utilizes the tax benefits
of its NOL carryforward.

Mr. Freeman concluded, "Our financial condition remains strong.
Our current ratio is 10.1 and our tangible book value is $2.62 per
share of which cash and equivalents total $1.84 per share. I look
forward to reporting on our progress next quarter."

ABOUT DATARAM CORPORATION

Dataram is a worldwide leader in the design and manufacture of
high capacity, reliable and innovative memory solutions. With over 40
years of experience, Dataram provides customized memory solutions for
OEMs and compatible memory for leading brands including HP, Dell, IBM,
Sun Microsystems and Intel. For more information about Dataram, visit
www.dataram.com

The information provided in this press release may include
forward-looking statements relating to future events, such as the
development of new products, pricing and availability of raw materials
or the future financial performance of the Company. Actual results may
differ from such projections and are subject to certain risks
including, without limitation, risks arising from: changes in the
price of memory chips, changes in the demand for memory systems,
increased competition in the memory systems industry, order
cancellations, delays in developing and commercializing new products
and other factors described in the Company's most recent Annual Report
on Form 10-K, filed with the Securities and Exchange Commission, which
can be reviewed at http://www.sec.gov.

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DATARAM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

First Quarter Ended July 31,
----------------------------

2008 2007

Revenues $ 7,563 $ 8,617

Costs and expenses:
Cost of sales 4,936 5,579
Engineering 332 302
Research and development 212 -
Selling, general and administrative 3,057 2,221
Stock-based compensation expense* 126 93
-------------- -------------
8,663 8,195
-------------- -------------

Earnings (loss) from operations (1,100) 422

Other income 109 219
-------------- -------------

Earnings (loss) before income taxes (991) 641

Income tax provision (benefit) (385) 235
-------------- -------------

Net earnings (loss) $ (606) $ 406
============== =============

Net earnings (loss) per share:
Basic $ (.07) $ .05
============== =============
Diluted $ (.07) $ .05
============== =============

Weighted average number of shares
outstanding:
Basic 8,869 8,738
============== =============
Diluted 8,869 8,878
============== =============

* Stock-based compensation expense is recorded as a component of
selling, general and administrative expenses in the Company's
financial statements filed with the Securities and Exchange
Commission on Form 10-K.
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DATARAM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

July 31, 2008 April 30, 2008

ASSETS
Current assets
Cash and cash equivalents $ 16,352 $ 17,642
Accounts receivable, net 3,789 4,047
Inventories 2,183 1,977
Deferred income taxes 1,132 1,101
Other current assets 357 98
------------------------------
Total current assets 23,813 24,865

Deferred income taxes 783 480

Property and equipment, net 878 686

Other assets 143 79
------------------------------

Total assets $ 25,617 $ 26,110
==============================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,476 $ 1,789
Accrued liabilities 880 702
------------------------------
Total current liabilities 2,356 2,491

Stockholders' equity 23,261 23,619
------------------------------

Total liabilities and stockholders'
equity $ 25,617 $ 26,110
==============================

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Dataram Corporation:
Mark Maddocks, 609-799-0071
Vice President-Finance, CFO
info@dataram.com

Copyright Business Wire 2008