Dataram: Fiscal 4Q10 Financial Results

Dataram Corporation reported its financial results for its fiscal fourth quarter and year ended April 30, 2010.

Revenues for the fourth quarter were $11.9 million, which compares to
$5.6 million for the comparable prior year period. Revenues for the
fiscal year totaled $44.0 million, which compares to $25.9 million for
the comparable prior fiscal year. The Company’s Micro Memory Bank business unit, which was acquired in the fourth quarter of the prior fiscal year, generated
approximately $3.9 million and $14.0 million in revenues, respectively,
in the fourth quarter and current fiscal year versus $0.9 million in
the comparable prior year periods.

John H. Freeman, Dataram’s president and CEO commented: "Our memory
solutions business continued to perform well in our fiscal fourth
quarter. The implementation of our sales and marketing strategy coupled
with the gradual economic recovery is having a positive effect on demand
for our products and our memory business continues to be cash
profitable. One of the growth initiatives I previously announced is to
strengthen and increase business and relationships with our channel
partners. I am pleased to report we more than doubled our business with
strategic partners in fiscal 2010. I am confident this initiative and
others we have implemented will further drive profitable growth in our
memory business."

Mr. Freeman continued: "The development of our XcelaSAN product line
continues to progress. XcelaSAN is a unique intelligent Storage Area
Network (SAN) optimization solution that delivers substantive
application performance improvement to applications such as Oracle, SQL
and VMware. XcelaSAN augments existing storage systems by transparently
applying intelligent caching algorithms that serve the most active
block-level data from high-speed storage, creating an intelligent,
virtual solid state SAN. This breakthrough solution allows organizations
to dramatically increase the performance of their business-critical
applications without the costly hardware upgrades or over-provisioning
of storage typically found in current solutions for increased
performance. In August, we plan to release enhanced features and
functionality which are currently in development to support sales
initiatives. These changes increase the products ease of use, ease of
installation and interoperability. High Availability systems are
expected to be available for sale in December. We anticipate that our
enhancements and the shipment of high availability systems will
accelerate product sales and broaden market adoption. We have made and
are continuing to make significant investments in research and
development in XcelaSAN. In part, this investment is being used to
develop and implement client recommendations based on their actual test
experiences. We will require additional financial resources to complete
development of these enhancements. To that end, we have entered into an
agreement with a financial institution for secured debt financing of up
to $5.0 million. We have also entered into an agreement with a vendor to
consign up $3.0 million of certain inventory into our manufacturing
facilities. This will allow us to substantially reduce our inventory
carrying requirements while still maintaining our ability to service our
customers. We expect that these two agreements will generate sufficient
additional liquidity for us to meet our operating plans for fiscal 2011."

The Company incurred a net loss for the fourth quarter and fiscal year
of $1,611,000, or $0.18 per share and $10,743,000, or $1.21 per share,
respectively. This compares to net loss of $1,112,000, or $0.13 per
share and $3,135,000, or $0.35 per share for the comparable prior year
periods. The current fiscal year’s net loss includes a valuation
allowance placed on the Company’s deferred tax assets totaling
$3,611,000, or $0.41 per share.

Mr. Freeman concluded: "Our acquisition of MMB one year ago has
exceeded our expectations and the turnaround of our memory solutions
business is on track. Our memory solutions business is generating
positive cash flow and growing. Our outlook for XcelaSAN is very robust,
particularly as we move into High Availability systems later this year.
We expect that the enhancements under development will further
strengthen our value proposition and sales."