EARTH SCIENCES

PRINCETON, NJ -- Dataram Corporation (NASDAQ:DRAM) today reported its financial results for its fiscal first quarter ended July 31, 2001. Revenues for the first quarter were $22.6 million compared to $38.0 million for the first quarter of the previous fiscal year and $25.9 million for the previous sequential quarter. The Company's pro forma net loss, which excludes restructuring charges of $1.2 million and intangible asset amortization of $297,000, was $511,000 or $0.06 per share. This compares to net earnings of $2.9 million or $0.29 per diluted share for the first quarter of the previous fiscal year and pro forma net earnings of $801,000 or $0.08 per diluted share in the prior quarter. The net loss for the first quarter, inclusive of restructuring charges and intangible asset amortization, was $1.8 million or $0.21 per share. During the quarter, the Company initiated a company-wide restructuring as part of its integration strategy for its recently acquired assets of Memory Card Technology A/S. The restructuring, which resulted in a 25 percent reduction in workforce and other cost efficiencies, is expected to reduce operating expenses by approximately $4 million, annually. The Company recorded a charge of $1.2 million or approximately $0.11 per share as a result of the restructuring. Robert Tarantino, Dataram's chairman and CEO, commented, "The economic slow down, coupled with lower selling prices resulting from a more than 50 percent decline in DRAM prices has impacted our revenues and earnings. The key to adapting to this current environment is to implement decisions that ensure profitability while continuing to support long term growth." Mr. Tarantino continued, "The changes we instituted during the first quarter not only provide a basis for long term growth, but position Dataram to market our products throughout the world without compromising our reputation for outstanding customer service and product quality." For further information visit www.dataram.com