Milestone Acquisition Accelerates Dot Hill's Transformation towards Data Management Services Software

Dot Hill Systems Corp. (Nasdaq: HILL), a provider of world-class, storage solutions and software for OEMs, Open Storage Partners and System Integrators, today announced that on January 26, 2010 it closed the previously announced acquisition of Cloverleaf Communications Inc., a privately held software company and an emerging leader in advanced heterogeneous storage virtualization and unified storage technologies. The acquisition is expected to significantly broaden Dot Hill's market opportunity and accelerate Dot Hill's transition from a provider of storage arrays in the direction of storage software and solutions.

Cloverleaf was formed in 2001 when it acquired its core product technology from Elta Systems / Israel Aerospace Industries (IAI), a multi-discipline systems research and development company. Cloverleaf's advanced virtualization and unified storage software products, the result of hundreds of man-years of development, have been deployed for several years by a wide range of end users. Customers include financial, legal and entertainment media companies as well as government agencies who require scalable performance and fully featured storage resource management for medium to large scale storage deployments. Cloverleaf's intelligent Storage Network (iSN) software products are designed to work heterogeneously across all vendors' storage arrays and support a common suite of advanced data management services. The iSN products provide significantly improved returns on investment for end users by consolidating data and disaster recovery management under a single pane user interface regardless of storage type or vendor.