Dot Hill Announces OEM Partnership with SEPATON

Collaboration Produces RAID 6 High-Performance Virtual Tape Library Solution
to Address Growing Market Demand

CARLSBAD, Calif., Jan. 15 /PRNewswire-FirstCall/ -- Dot Hill Systems Corp.
(Nasdaq: HILL), a market leader in providing high performance, flexible
storage offerings and responsive service and support to OEMs and system
integrators, today announced it has entered into an original equipment
manufacturer agreement with Marlborough, Mass.-based SEPATON, Inc.
SEPATON is one of the industry's leading developers of high-performance,
modularly scalable Virtual Tape Libraries (VTL) for enterprise-class data
protection. SEPATON has selected Dot Hill's 2730 Turbo, the company's newest
high-performance, modular enterprise storage platform that is compliant with
RoHS and WEEE standards, and has chosen a configuration that features
Serial-ATA (SATA) connectivity.
Dot Hill's offering is integrated with SEPATON's award-winning
S2100(R)-ES2 VTL, a disk-based appliance that appears to backup software
applications as a physical tape library. The S2100(R)-ES2's unique
ContentAware(TM) architecture was specifically designed to deliver modular
scalability, Fibre Channel wire speed performance, simple management and
best-in-class de duplication performance. This advanced technology automates
all storage provisioning and performance optimization, including dynamic
capacity expansion and load-balancing to maintain optimal performance.
Using Dot Hill's patented SimulCache(TM) technology, the SEPATON offering
leverages redundant controllers for industry-leading read/write performance,
eliminating the performance hit associated with conventional cache mirroring.
The combined solution is immediately available from SEPATON.
Unlike other alternatives, SEPATON offers a complete hardware and software
system, enabling customers to realize the benefits of VTL quickly and with no
disruption to existing systems.
"In addition to being RoHS- and WEEE-compliant, the S2100-ES2 offers
customers a single, cost-effective, scalable system to centrally manage and
protect enterprise data, and eliminate costly, manual and error-prone
remote-site data management practices," said Miklos Sandorfi, chief technology
officer, SEPATON, Inc. "We are pleased to partner with Dot Hill and applaud
the company's commitment to our success as an OEM partner."
The OEM partnership between SEPATON and Dot Hill is the latest in a series
of OEM relationships announced by Dot Hill. The solution has been developed
using Dot Hill's R/Evolution (Rapid Evolution) Storage Architecture(TM), which
enables OEM customers to rapidly customize a storage solution through a
"configure-to-product" model. The result is an innovative product offering
which enables partners to easily integrate value-add hardware and software.
This unique business model has enabled Dot Hill's OEM partners such as SEPATON
to provide their customers with competitive products while lowering
development costs and accelerating time to market.
"We are pleased to collaborate with SEPATON to meet market requirements
for a high-performance, cost-effective VTL solution that delivers enterprise
performance," said Dana Kammersgard, president and chief executive officer,
Dot Hill. "Dot Hill's focus on developing innovative OEM products has enabled
us to become one of the leading suppliers in this market, and we are looking
forward to helping SEPATON continue to expand its footprint in the storage
market."
According to a research report by Enterprise Strategy Group (ESG) adoption
of VTL solutions is increasing.(i) The in depth study, conducted in March of
2007, found almost one-third of survey respondents had implemented a VTL
solution and another one-third planned to do so within the next 24 months.
About SEPATON, Inc.
SEPATON(R) helps enterprises reduce risk and improve operational
efficiency in the data center with the industry's fastest, most scalable
virtual tape library solution. Built on our patented ContentAware(TM)
architecture, SEPATON products enable enterprises to consolidate and protect
information by deduplicating, backing up and restoring petabytes of data at
wire speed without disruption to their existing infrastructure. We combine
these products with proven methodologies and in-depth services expertise to
deliver a measureable return on investment. For additional information visit
http://www.sepaton.com.
About Dot Hill
Dot Hill is the market leader in providing flexible storage offerings and
responsive service and support to OEMs and system integrators, from engagement
through end-of-life. Founded in 1984, Dot Hill has more than two decades of
expertise in developing high-quality, competitively priced storage products.
Focused on providing best-in-class support for OEMs and indirect partners, the
company has more than 100,000 systems in use worldwide. With its patented
technology and award-winning SANnet(R) family of storage and its Dot Hill
Storage Services, Dot Hill makes storage easy. Headquartered in Carlsbad,
Calif., Dot Hill has offices in China, Germany, Israel, Japan, Netherlands,
United Kingdom and the United States. More information is available at
http://www.dothill.com.
Certain statements contained in this press release regarding matters that
are not historical fact are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act. Because such statements are
subject to risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements. Such statements
include statements regarding Dot Hill's continued relationship with SEPATON,
Inc., the success of that relationship, the future availability of certain
product features and the performance of any product or solution in any
particular environment. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. The risks that contribute to the
uncertain nature of the forward-looking statements include: the risk that
SEPATON, Inc. may cancel significant orders, revise its product forecasts or
terminate its agreement with Dot Hill; the fact that there are no minimum
purchase requirements in the agreement between Dot Hill and SEPATON, Inc.;
changing customer preferences in the Open Systems computing marketing; and
other unforeseen supply, technological, intellectual property or engineering
issues. However, there are many other risks not listed here that may affect
the future business of Dot Hill, as well as the forward-looking statements
contained herein. To learn about such risks and uncertainties, you should read
the risk factors set forth in Dot Hill's public filings with the SEC,
including the Forms 8-K, 10-K and 10-Q most recently filed by Dot Hill. All
forward-looking statements contained in this press release speak only as of
the date on which they were made. Dot Hill undertakes no obligation to update
such statements to reflect events that occur or circumstances that exist after
the date on which they were made. The Enterprise Strategy Group is independent
of Dot Hill, and Dot Hill has no control over its research or reporting
methods. Dot Hill does not take any responsibility for data compiled or
reported by the Enterprise Strategy Group.
(i) "VTL Adoption and Market Trends," Enterprise Strategy Group, March
2007.
SEPATON, SRE, S2100, and Site2 are registered trademarks of SEPATON
Corporation. ContentAware and DeltaStor are trademarks of SEPATON Corporation.
All other brand and product names are or may be trademarks of their respective
owners.
SOURCE Dot Hill Systems Corp.

Erin Lutz of Lutz PR, +1-949-293-1055, erinlutz@cox.net