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Dot Hill Signs Manufacturing Agreement With Foxconn Technology Group

September 30, 2008

CARLSBAD, Calif., Sept. 30 /PRNewswire-FirstCall/ — Dot Hill Systems Corp. , today announced that the company has entered into a manufacturing agreement with Foxconn Technology Group, a leading provider of contract manufacturing, original design manufacturing services and global IT supply chain services.

Under the terms of the agreement, Foxconn will supply Dot Hill with manufacturing, assembly and test services from its facilities in China and final integration services including final assembly, testing and configure-to-order services, through its world wide facilities.

“Foxconn has world-class global capabilities in supply chain management, manufacturing, new product introduction and chassis engineering services,” said Dana Kammersgard, president and chief executive officer of Dot Hill. “By partnering with Foxconn, we believe we will be able to benefit from their vertical integration, strong process control and economies of scale as well as their global distribution system that mirrors our own markets. This is another step forward in our global supply chain strategy. We believe our new relationship with Foxconn can greatly benefit Dot Hill through process efficiencies, global logistics strength and a material reduction of our product manufacturing costs, and as such, this represents another aspect of our margin improvement initiative. Through extensive research and discussion with our OEM partners as well as stringent quality audits, we feel Foxconn is uniquely suited to address Dot Hill’s growing supply chain needs, which are being driven by the success of our OEM partnerships.”

“We are pleased to have been selected by Dot Hill as their global partner for strategic manufacturing, design services and distribution,” said Jackson Shih, vice president, Foxconn. “The relationship will be mutually beneficial as it will allow Foxconn to further expand its strength in the data storage market while providing Dot Hill with better efficiency that leads to margin-enhancing products and a competitive supply chain model.”

About Dot Hill

Delivering innovative technology and global support, Dot Hill empowers the OEM community to bring unique storage solutions to market, quickly, easily and cost-effectively. Offering high performance and industry-leading uptime, Dot Hill’s RAID technology is the foundation for best-in-class storage solutions offering enterprise-class security, availability and data protection. The company’s products are in use today by the world’s leading service and equipment providers, common carriers, advanced technology and telecommunications companies as well as government agencies. Dot Hill solutions are certified to meet rigorous industry standards and military specifications, as well as RoHS and WEEE international environmental standards. Headquartered in Carlsbad, Calif., Dot Hill has offices and/or representatives in China, Germany, Japan, United Kingdom and the United States. For more information, visit us at http://www.dothill.com/.

About Foxconn Technology Group

Foxconn is the partner of choice for all aspects of contract manufacturing services in global Computer, Communication and Consumer-electronics (3C) industries. Armed with its proprietary eCMMS business model and world leading IP portfolio of over 23,000 patents, Foxconn has revolutionized the CEM/EMS/ODM industries since turn of the century. Through its renowned superiorities in speed, quality, engineering services, efficiency, and value-added offered, Foxconn pursues the mission of increasing the affordability of environmental-friendly electronics products for all mankind.

Statements contained in this press release regarding matters that are not historical facts 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 the effect of Dot Hill’s agreement with Foxconn on Dot Hill’s business and financial results. The risks that contribute to the uncertain nature of the forward-looking statements include unforeseen technological, intellectual property, supply or engineering issues and changing customer preferences, and the additional risks set forth in 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.

Dot Hill Systems Corp.

CONTACT: Hanif Jamal of Dot Hill Systems Corp., +1-760-476-3825,hanif.jamal@dothill.com

Web site: http://www.dothill.com/




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