Dot Hill Looks To Acquire Certain Ciprico Assets

CARLSBAD, Calif. -- Dot Hill Systems Corp. (the "Company") announced today that it is in negotiations with Ciprico Inc. to purchase Ciprico's RAIDCore(TM) and NAS (Networked Attached Storage) intellectual property assets. Ciprico previously announced that, on July 28, 2008, it filed a voluntary petition pursuant to Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Minnesota (the "Bankruptcy Court").

Under the proposed asset purchase ("Asset Purchase"), the Company would acquire all of Ciprico's rights to the RAIDCore(TM) technology. In addition, the Company would acquire a joint ownership interest with Ciprico in the NAS intellectual property.

The Company is also negotiating to provide Ciprico with a debtor-in-possession ("DIP") loan ("DIP Loan") in an amount not to exceed $225,000. The terms of the DIP Loan would provide Dot Hill with a first priority security interest in all of Ciprico's assets.

Dot Hill Systems Corp.