Dataram Contact: Investor Contact: Mark Maddocks, Tim Curtiss, Chief Financial Officer Wall Street Investor Relations Corp. 609-799-0071 216-831-6532 info@dataram.com tcurtiss@WallStreetIR.com DATARAM REPORTS 88% EARNINGS INCREASE, 80% SALES GROWTH IN FIRST QUARTER . Sales, Earnings set new quarterly record . Gigabyte Volume Increased 76% over Previous Year PRINCETON, NJ, August 10, 2000 - Dataram Corporation (NASDAQ: DRAM) today reported its financial results for its fiscal first quarter, ended July 31, 2000. The Company reported net earnings of $2,879,000, or $0.29 per diluted share, an increase of 88% over $1,531,000, or $0.17 per diluted share, for the same period of the previous year. Revenues for the quarter were $38.0 million, an increase of 80% over the prior year's first quarter level of $21.2 million. Volume, measured in gigabytes shipped increased 76% in the quarter, compared to the prior year period. In thousands, except Three Months ended per share amounts July 31, ____________________ ____________________________ % 2000 1999 Gain ____ ____ ____ Revenues $37,996 $21,164 80% Earnings from Operations $ 4,417 $ 2,367 87% Net Earnings $ 2,879 $ 1,531 88% Diluted EPS $ 0.29 $ 0.17 71% Diluted Shares 9,959 9,264 -more- "Strong forces continue to drive the growth of our business," said Robert Tarantino, chairman and CEO of Dataram. "Investment in Internet infrastructure remains dynamic. Internet service providers, corporate IT managers and application service providers have a powerful need to optimize their networks. Our memory offers superior price/performance, which represents a compelling proposition to network managers and chief information officers. We see no signs that the pace of Internet investment will slow." "I am pleased to report that we are moving successfully to implement our growth strategies," added Mr. Tarantino. "We have filled all of this calendar year's new slots on the North American sales team, and we look forward to the contributions of our new hires as they become productive. Hiring in our new European sales center is on plan. Our European group achieved solid growth, in line with our plans." "During the quarter, our new product introductions included designs for Compaq, Hewlett-Packard, Silicon Graphics and IBM," Mr. Tarantino noted. "The Intel-certified line enjoyed strong acceptance and contributed meaningfully to our gains. The new production line at our Bucks Co. manufacturing facility is performing well and in line with our plans." "This is our eleventh consecutive quarter of delivering increased year-over-year bottom line results," stated Mark Maddocks, CFO. "We set new records once again for sales and earnings. Volume growth and a favorable pricing environment were the highlights. Operating margins increased and revenue growth was above our expectations, reflecting higher volume and higher selling prices resulting from increased memory chip prices." -more- Dataram will conduct a conference call at 11:00 AM, EDT on Thursday, August 10th to provide further insights regarding its financial results and to respond to investor questions. Interested shareholders may participate in the call by dialing 800-720-5833 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 August 10th to 9:00 PM on August 11th. Listeners may dial 800-252-6030 (402-220- 2491 for international callers) and use the code 6677312 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 Follow DATARAM CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF EARNINGS (in thousands, except per share amounts) (Unaudited) Three Months Ended 7/31/2000 7/31/1999 _________ _________ Revenues $ 37,996 $ 21,164 Costs and expenses: Cost of sales 28,861 15,414 Engineering 372 333 Selling, general and administrative 4,346 3,050 _________ _________ 33,579 18,797 Earnings from operations 4,417 2,367 Interest income, net 230 108 _________ _________ Earnings before income taxes 4,647 2,475 Income taxes 1,768 944 _________ _________ Net earnings 2,879 1,531 ========= ========= Net earnings per common share: Basic $ .34 $ .20 ========= ========= Diluted $ .29 $ .17 ========= ========= Weighted average number of common shares outstanding: Basic 8,427 7,827 ========= ========= Diluted 9,959 9,264 ========= ========= DATARAM CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (in thousands) July 31, 2000 April 30, 2000 _____________ ______________ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 16,253 $ 13,650 Trade receivables, net 18,044 16,241 Inventories 6,244 4,651 Other current assets 698 585 _____________ ______________ Total current assets 41,239 35,127 Property and equipment, net 5,347 5,007 Other assets 17 17 _____________ ______________ $ 46,603 $ 40,151 ============= ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 11,276 $ 9,538 Accrued liabilities 3,120 2,878 _____________ ______________ Total current liabilities 14,396 12,416 Deferred income taxes 841 841 Stockholders' equity 31,366 26,894 _____________ ______________ $ 46,603 $ 40,151 ============ ============== 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 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. # # #