Dataram Announces the Amendment of Its Revolving Credit Line and the Repayment of Related Party Debt

  Dataram Announces the Amendment of Its Revolving Credit Line and the
  Repayment of Related Party Debt

Business Wire

PRINCETON, N.J. -- May 1, 2014

Dataram Corporation (NASDAQ:DRAM) announced today it has signed an amendment
(the “Amendment”) to its financing agreement (the “Financing Agreement”) with
Rosenthal & Rosenthal, Inc. The Amendment allows the Company to borrow against
its inventory balances based on prescribed formulas. The maximum borrowing
capacity under the Financing Agreement remains at $3,500,000. Management
believes the $3,500,000 will be sufficient for the next twelve months. The
loans under the Financing Agreement mature on November 30, 2016 unless the
Financing Agreement is either earlier terminated or renewed. Loans outstanding
under the Financing Agreement will bear interest at a rate equal to the Prime
Rate (as defined in the Financing Agreement) plus 3.25%, or on Over-advances
(as defined in the Financing Agreement), if any, at a rate equal to 6.25%.

The additional advances available under the Financing Agreement were used to
pay off the remaining balance of approximately $773,000 due under the Amended
and Restated Note and Security Agreement (the “Note and Security Agreement”)
payable to David Sheerr, an executive of the Company. As a result of such
repayment, (i) the Note and Security Agreement was terminated, (ii) the
Company expects to achieve an increase in cash flow of approximately $600,000
over the next 23 months, and (iii) the Company lowered its overall interest
rate on its outstanding debt. In addition, the collateral assignment to David
Sheerr of the Company’s interest in its lease in Montgomeryville, Pennsylvania
was terminated.

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 larger orders 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,

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


Marc P. Palker, 609-799-0071
Chief Financial Officer
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