Dataram Announces the Refinancing of Its Revolving Credit Line and the Completion of a Sale of Equipment

  Dataram Announces the Refinancing of Its Revolving Credit Line and the
  Completion of a Sale of Equipment

Business Wire

PRINCETON, N.J. -- November 8, 2013

Dataram Corporation (NASDAQ:DRAM) announced today it has signed a Financing
Agreement (“The Financing Agreement”) with Rosenthal and Rosenthal, Inc. The
Financing Agreement provides for a revolving loan with a maximum borrowing
capacity of $3,500,000. The loans under the Financing Agreement mature on
November 30, 2016 unless such Financing Statement is either earlier terminated
or renewed. Loans outstanding under the Financing Agreement will bear interest
at a rate of the Prime Rate (as defined in the Financing Agreement) plus 3.25%
(the “Effective Rate”) or on Over-advances (as defined in the Financing
Agreement), if any, at a rate of the Effective Rate plus 3%. The Financing
Agreement contains other restrictive covenants, including, among others,
covenants limiting our ability to incur indebtedness, guarantee obligations,
sell assets, make loans, enter into mergers and acquisition transactions and
declare or make dividends. Borrowings under the Financing Agreement are
collateralized by substantially all the assets of the Company. The funds will
provide working capital to the Company.

At the same time, the Company entered into a financing arrangement with David
Sheerr (“Sheerr”), structured as a sale lease-back. Pursuant to the
arrangement, the Company sold certain equipment and furniture located at its
facility at 130 Corporate Drive, Montgomeryville, PA 18936 (the
“Montgomeryville Facility”) to Sheerr in consideration for a reduction of
$500,000 in the remaining principal balance of an outstanding promissory note
owed to Sheerr, which promissory note was amended and restated (the “Amended
and Restated Note and Security Agreement”). As additional security for the
Amended and Restated Note and Security Agreement, the Company collaterally
assigned to Sheerr its lease to the Montgomeryville Facility pursuant to a
Collateral Assignment of Tenant’s Interest in Lease (the “Collateral
Assignment”).

Simultaneously, the Company leased the equipment and furniture back from
Sheerr pursuant to an Equipment and Furniture Lease Agreement (the “Lease”).
The Lease has a 5-year term, and provides the Company with the option to
extend the term for an additional 2 years.

John H. Freeman, Dataram’s President and CEO commented, “These are steps we
are taking in a program to strengthen our balance sheet, reduce expenses and
have working capital available to support large recent wins and to position
Dataram for future growth.”

ABOUT DATARAM CORPORATION

Founded in 1967, Dataram is a worldwide leader in the manufacture of
high-quality computer memory and software products. Our products and services
deliver IT infrastructure optimization, dramatically increase application
performance and deliver substantial cost savings. Dataram solutions are
deployed in 70 Fortune 100 companies and in mission-critical government and
defense applications around the world. 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.

Contact:

Dataram
Marc P. Palker, 609-799-0071
Chief Financial Officer
info@dataram.com
 
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