John H. Freeman, Dataram's president and CEO commented, "The memory market is beginning to stabilize. There is mild upward pricing for memory which has been absent from this market for several years. The upward pricing is based on consolidation of manufacturers, reduced production by manufacturers and increased demand, primarily generated by the introduction into the market of servers based on Intel's Nehalem architecture. Additionally, as we have previously reported, the Company acquired certain assets of Micro Memory Bank, Inc. ("MMB"), a privately-held corporation in the fourth quarter of our last fiscal year. MMB positions Dataram with a more comprehensive product set, new routes to market and an established customer base. Its products, personnel and reach directly support our strategy to grow our memory solutions business. Revenue growth was supported by MMB sales as well as sequential quarterly growth in our traditional server memory solutions business. The MMB business unit generated approximately $2.9 million in revenues in the first quarter of the current fiscal year."

Mr. Freeman continued, "We recently announced plans to launch a unique storage product line that will deliver application performance improvements as well as cost savings without the need for an expensive storage upgrade or replacement. This product launch supports our corporate strategy to deliver data center solutions that optimize performance, leverage existing IT investments, and make measurable reductions in the total cost of ownership associated with these assets. Over the past 15 months, the Company has made significant investments in research and development, primarily associated with the development of this product line. In the first quarter of the current fiscal year, we incurred approximately $874,000 of total expense in that area which compares to approximately $212,000 in the first quarter of last fiscal year. Early customer evaluations are currently being conducted before the products are shown publicly for the first time in October. Customer feedback has been very positive based on significant improvement in application performance and an immediate, positive return on investment."

The Company incurred a net loss for the first quarter of the current fiscal year of $978,000, or $0.11 per diluted share, which compares to a net loss of $606,000, or $0.07 per diluted share for the comparable prior year period. Last fiscal year's first quarter net loss included 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.

Mr. Freeman concluded, "Our financial condition remains strong. Our current ratio is 5.4 and our tangible book value is $2.13 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 and AMD motherboard based servers. 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.

  DATARAM CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)                                                                                                                                                         First Quarter Ended July 31,                                                                                                                                                                                                         2009           2008                                                                                                                                                                       Revenues                             $  9,190       $  7,563                                                                                                                                                                      Costs and expenses:                                                                                              Cost of sales                           6,655          4,936                                                     Engineering                             253            332                                                       Research and development                874            212                                                       Selling, general and administrative     2,728          3,057                                                     Stock-based compensation expense*       156            126                                                       Intangible asset amortization           164            -                                                                                                 10,830         8,663                                                                                                                                                                      Loss from operations                    (1,640  )      (1,100  )                                                                                                                                                                  Other income                            34             109                                                                                                                                                                        Loss before income taxes                (1,606  )      (991    )                                                                                                                                                                  Income tax benefit                      (628    )      (385    )                                                                                                                                                                  Net loss                             $  (978    )   $  (606    )                                                                                                                                                                  Net loss per share:                                                                                              Basic                                $  (.11    )   $  (.07    )                                                 Diluted                              $  (.11    )   $  (.07    )                                                                                                                                                                  Weighted average number of shares                                                                                outstanding:                                                                                                     Basic                                   8,869          8,869                                                     Diluted                                 8,869          8,869                                                      -------------------------------------------------------------------------------  

* 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-Q.

  DATARAM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)                                                                                                                                               July 31, 2009     April 30, 2009                                                                                                         ASSETS                                                                                     Current assets                                                                             Cash and cash equivalents                    $  7,272          $  12,525                   Accounts receivable, net                        5,070             3,381                    Inventories                                     4,485             2,201                    Deferred income taxes                           303               300                      Other current assets                            255               126                      Total current assets                            17,385            18,533                                                                                                              Deferred income taxes                           3,892             3,282                                                                                                               Property and equipment, net                     1,125             1,100                                                                                                               Intangible assets, net                          1,340             1,504                                                                                                               Other assets                                    126               136                                                                                                                 Total assets                                 $  23,868         $  24,555                                                                                                                                                                                                         LIABILITIES AND STOCKHOLDERS' EQUITY                                                       Current liabilities                                                                        Accounts payable                             $  1,726          $  1,386                    Accrued liabilities                             1,499             1,689                    Total current liabilities                       3,225             3,075                                                                                                               Accrued liabilities                             381               381                                                                                                                 Stockholders' equity                            20,262            21,099                                                                                                              Total liabilities and stockholders' equity   $  23,868         $  24,555                    -------------------------------------------------------------------------------  

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