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June 1, 2004

Dot Hill Announces SANnet II SATA Storage Solutions

CARLSBAD, Calif. - June 1, 2004 - Dot Hill Systems Corp. (NASDAQ: HILL) today introduced its enterprise-class SANnet(R) II SATA (Serial Advanced Technology Attachment) storage solutions. SATA is a new high-speed interface standard for hard drives based on serial signaling technology. This latest addition to the SANnet II family of products can provide businesses with more capacity at a significantly lower cost. Dot Hill plans to begin volume production shipments of SANnet II SATA to all customers in June, including a major OEM customer.

"We are pleased to announce our SATA products because we believe this technology can bring economical disk-based, nearline storage to customers across a broad variety of industries," said Dana Kammersgard, Dot Hill's Chief Technology Officer and co-founder. "SANnet II SATA delivers very cost-effective storage without sacrificing robustness or redundancy. This is a full-featured, fault-tolerant enterprise-class product line. SANnet II SATA will easily integrate into the tiered storage model that businesses are adopting in order to more efficiently manage information based on its value. Compared to some of the recently introduced SATA products, the SANnet II SATA is significantly more scaleable in terms of capacity, host connections and performance. It is also much more rugged as measured by independent NEBS Level 3 and MIL-STD-810F certifications."

SANnet II SATA storage systems offer 12 drive bays providing a capacity of up to 3 terabytes (TB) in just 2U (3.5 inches high) of rack space and can scale up to 16TB of usable RAID 5 storage by adding drives and expansion systems. In addition, the SANnet II SATA supports RAID 0, 1, 0+1, 3, and 5.

Customers have the option of single or dual RAID controllers and AC or DC power. With dual redundant, hot-swappable components including controllers, power supplies, fans, event management units and battery-backed cache memory, the SANnet II SATA provides enterprise-class availability.

Multiple Fibre Channel (FC) host ports enable the direct connection of up to 12 servers (6 redundant) without the use of external switches, providing a lower cost networked storage solution while maintaining high availability.

"This concept of a 'switchless SAN' is something we pioneered back in 1999 with our first generation of SANnet products," explained Omar Barraza, Dot Hill's director of marketing. "It is a much simpler and cheaper approach to installation, configuration and management of networked storage, which are important factors to the SMB and department level customer."

"SATA storage offers enterprises the ability to retrieve valuable data in a more timely manner, which is now required by law for publicly traded companies and within certain industries such as financial services and health care," said Mike Karp, senior analyst, Enterprise Management Associates. "SATA storage represents an important storage tier, and has an essential role to play at all enterprises looking to increase operational efficiencies by implementing information lifecycle management (ILM)."

As with all its existing SANnet II products, Dot Hill's SANnet II SATA products meet the stringent NEBS (Network Equipment Building System) Level 3 standard used by the telecommunications industry and the MIL-STD-810F standard used by the U.S. Department of Defense. Because it is built on the same modular, open systems architecture as all SANnet II products, the SATA solutions are interoperable with major platforms and operating systems.

The new SANnet II SATA products also use the same storage software suite, SANscape(R) storage management software and SANpath(R) storage networking software that is used with the other SANnet II systems. This provides a unified management interface for the entire product line including SCSI, FC and SATA, as well as direct attached and storage area network (SAN) configurations.

"This is exciting news", Richard Goldson, Director of Corporate Sales at Concept commented, "The small medium enterprise market and distributed elements of large enterprises represent a very large untapped opportunity for the deployment of low-cost and easy to install SAN-based disk storage infrastructures. We will continue to focus our efforts on reducing the acquisition and deployment cost of best-of-breed SAN-based disk storage solutions to all of our customers. The SANnet II SATA is an ideal consolidation platform for growing organizations that are ready for a SAN or need scalable direct attached storage".

About Dot Hill:

Dot Hill Systems Corp. is a leader in the innovative design and delivery of storage networking solutions to channel partners worldwide. Its products include the SANnet II family of storage systems, the RIO Xtreme(TM) storage servers, SANscape storage management software, SANpath storage networking software and professional training, support and service. For more information, visit Dot Hill on the web at www.dothill.com.

About Concept:

Concept is a technology services company that helps enterprise companies develop, implement and execute technology solutions. From strategy to implementation, Concept's solutions, products and services help companies generate competitive value, enhance productivity and maximize their relationships with customers, employees and partners. Headquartered in Mississauga, Concept is a certified Reseller of IBM, Dothill, and Unisys. For more information, call us now at 1-800-561-5852, fax us at 716-884-8440 or 905-542-0335 or simply e-mail us at info@conceptcomputer.com.

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