Dataram Contact: Investor Contact: Mark Maddocks, Tim Curtiss, Wall Street Investor Chief Financial Officer Relations Corp. 609-799-0071 216-831-6532 info@dataram.com tcurtiss@WallStreetIR.com DATARAM REPORTS 60% EARNINGS INCREASE, 43% SALES GROWTH IN FOURTH QUARTER . Company Reports 39% Increase in Annual Earnings over Previous Year . Major Expansion Commenced, New European Center Opened PRINCETON, NJ, May 24, 2000 -- Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fiscal fourth quarter ended April 30, 2000. The Company reported net earnings of $2,409,000, or $0.24 per diluted share, compared to $1,506,000, or $0.16 per diluted share, for the same period of the previous year. Revenues for the quarter were $32.9 million, an increase of 43% over the prior year's fourth quarter level of $22.9 million. Volume, measured in gigabytes shipped, increased 70% in the fourth quarter, compared to the prior year period. Net earnings for the year ended April 30, 2000 were $7,846,000, or $0.81 per diluted share, an increase of 39% over prior year earnings of $5,635,000, or $0.60 per diluted share. Revenues for the year were $109.2 million, up 44% compared to $75.9 million in the previous fiscal year. In thousands, except Three Months ended Twelve Months ended per share amounts April 30, April 30, % % 2000 1999 Gain 2000 1999 Gain ____ ____ ____ ____ ____ ____ Revenues $32,874 $22,919 43% $109,152 $75,853 44% Earnings from Operations $3,748 $2,325 61% $12,183 $8,558 42% Net Earnings $2,409 $1,506 60% $7,846 $5,635 39% Diluted EPS $0.24 $0.16 50% $0.81 $0.60 35% Shares Outstanding (diluted) 9,864 9,272 9,727 9,349 - more - "We have continued to grow rapidly," said Robert Tarantino, chairman and CEO of Dataram. "This is our tenth consecutive quarter of delivering increased year-over-year bottom line results. We are experiencing a surge in volume, which reflects potent fundamental trends and the success of our strategy. Internet infrastructure development and increasing corporate network capacity are driving significant demand increases for servers. The growing availability of broadband communications services requires carriers and customers to increase memory capacity in these servers. These trends show no signs of slowing. Our advanced memory enables customers to maximize the performance of their systems." At the end of the fourth quarter, Dataram commenced production on a new assembly line at its manufacturing facility. This expansion will ensure that the Company can continue to meet the requirements of its high-growth customers. Also, in March, a new sales and marketing center in London was established. This office will support increased coverage of European customers. "Our business experienced a strong quarter, with record revenues, earnings, shipments and cash flow," noted Mark Maddocks, CFO. "Operating margins were solid, during a period of significant memory chip price volatility. As we enter our fiscal 2001 first quarter, we are encouraged by the strong demand we see for our products." Dataram will conduct a conference call at 11:00 AM, EDT on Wednesday, May 24 to provide further insights regarding its financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 888-869-0374 approximately 10 minutes before the call is scheduled to begin and asking to be connected to the Dataram conference call. A recorded replay of the call will be available from 1:00 PM on May 24 to 9:00 PM on May 25. Listeners may dial 800-252-6030 (402-220-2491 for international callers) and use the code 6202506 for the replay. The call will also be available on Vcall at www.vcall.com. Dataram Corporation is a leading provider of gigabyte memory upgrades for network servers. The Company specializes in the manufacture of large capacity memory for Compaq, Hewlett-Packard, IBM, Intel, Silicon Graphics and Sun Microsystems computers. Dataram, headquartered in Princeton, New Jersey, is celebrating its 34th year in the computer industry. Additional information is available on the Internet at www.dataram.com. Financial Tables to Follo DATARAM CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF EARNINGS (in thousands, except per share amounts) Three Months Ended Twelve Months Ended 4/30/2000 4/30/1999 4/30/2000 4/30/1999 _________ _________ _________ _________ Revenues $ 32,874 $ 22,919 $ 109,152 $ 75,853 Costs and expenses: Cost of sales 25,065 17,579 81,877 54,814 Engineering, selling, general and admin. 4,061 3,015 15,092 12,481 _________ _________ _________ _________ 29,126 20,594 96,969 67,295 Earnings from operations 3,748 2,325 12,183 8,558 Interest income, net 143 74 491 436 _________ _________ _________ _________ Earnings before income taxes 3,891 2,399 12,674 8,994 Income taxes 1,482 893 4,828 3,359 _________ _________ _________ _________ Net earnings 2,409 1506 7,846 5,635 ========= ========= ========= ========= Net earnings per common share: Basic $ .29 $ .19 $ .99 $ .69 ========= ========= ========= ========= Diluted $ .24 $ .16 $ .81 $ .60 ========= ========= ========= ========= Weighted average number of common shares outstanding: Basic 8,218 7,953 7,953 8,182 ========= ========= ========= ========= Diluted 9,864 9,272 9,727 9,349 ========= ========= ========= ========= DATARAM CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (in thousands) April 30, 2000 April 30, 1999 ______________ ______________ ASSETS Current assets: Cash and cash equivalents $ 13,650 $ 8,093 Trade receivables, net 16,241 12,016 Inventories 4,651 3,290 Other current assets 585 475 ______________ ______________ Total current assets 35,127 23,874 Property and equipment, net 5,007 3,491 Other assets 17 9 ______________ ______________ $ 40,151 $ 27,374 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 9,538 $ 4,344 Accrued liabilities 2,878 2,092 ______________ ______________ Total current liabilities 12,416 6,436 Deferred income taxes 841 919 Stockholders' equity 26,894 20,019 ______________ ______________ $ 40,151 $ 27,374 ============== ============== The information provided in this press release may include forward- looking statements relating to future events, such as the development of new products, the commencement of production, 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 for workstations and servers, increased competition in the memory systems industry, 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 ###