Dot Hill Signs Manufacturing Agreement With MiTAC and SYNNEX

CARLSBAD, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Dot Hill Systems Corp. , today announced that the company has entered into a manufacturing agreement with MiTAC International Corporation , a leading provider of contract manufacturing and original design manufacturing services, and SYNNEX Corporation , a leading global IT supply chain services company.

Under the terms of the agreement, MiTAC will supply Dot Hill with manufacturing, assembly and test services from its facilities in China and SYNNEX will provide Dot Hill with final assembly, testing and configure-to-order services through its facilities in Fremont, California and Telford, United Kingdom.

"MiTAC has impressive capabilities in supply chain management, manufacturing, new product introduction and chassis engineering services and SYNNEX is a world-class contract assembly services company," said Dana Kammersgard, president and chief executive officer of Dot Hill. "We believe that the expertise these two leading companies provide could greatly benefit Dot Hill in its strategic product initiatives and help to expand its global capabilities. In addition, we expect that our product supply relationship with MiTAC and SYNNEX will help enable Dot Hill to substantially reduce its product manufacturing costs. Through extensive industry research and discussions with several of our OEM customers, we determined that the combination of MiTAC and SYNNEX were best suited to address Dot Hill's growing supply chain needs, driven by the scale created by several of our recent OEM wins.

"We are pleased to have been selected by Dot Hill as a strategic manufacturing and design services partner," said Billy Ho, president of MiTAC. "The relationship will be mutually beneficial as it will allow MiTAC to expand its reach into the competitive storage market while providing Dot Hill with margin enhancing products and a competitive supply chain model."

"We are looking forward to a diverse business relationship with Dot Hill," said Robert Huang, president and chief executive officer of SYNNEX. "Our wide range of assembly and test services will provide Dot Hill with more cost-efficient manufacturing solutions for its innovative storage products."

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, Israel, Japan, Netherlands, United Kingdom and the United States. For more information, visit us at http://www.dothill.com/.

About MiTAC

MiTAC International is a global information technology company headquartered in Taiwan and publicly listed on the Taiwan Stock Exchange. Its businesses span three major areas -- end-user systems (desktop computers and digital home entertainment products), enterprise systems (workstations, servers, and storage equipment), and mobile communications (handheld GPS devices, smart phones, and mobile entertainment devices). In addition to large vertically integrated manufacturing sites in China, MiTAC also maintains extensive R&D operations in that country and Taiwan, as well as sales and marketing operations in the US, UK, Germany, Japan, and many other countries. The company is recognized by the technology press and throughout the industry for such strengths as its sophisticated supply chain management and integrated design-and-manufacturing system. The company was recently named one of Business Week magazine's Information Technology 100 top global IT firms. MiTAC International is part of the MiTAC Group, which includes information technology companies such as Mio Technology, makers of Mio DigiWalker handhelds and GPS devices, and MiTAC Technology, among others.

About SYNNEX

Founded in 1980, SYNNEX Corporation is a global IT supply chain services company offering a comprehensive range of services to original equipment manufacturers, software publishers and reseller customers worldwide. SYNNEX offers product distribution, related logistics services, demand generation marketing and contract assembly and works with the leading industry suppliers of IT systems, peripherals, system components, software and networking equipment. Additional information about SYNNEX may be found online at http://www.synnex.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 forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. Forward-looking statements include statements regarding the potential enhancement of Dot Hill's strategic manufacturing initiatives, expansion of Dot Hill's global capabilities, reduction of Dot Hill's product manufacturing costs and enhancement of Dot Hill's product margins. The risks that contribute to the uncertain nature of the forward-looking statements include: the provisions of the agreement between Dot Hill, MiTAC and SYNNEX, including provisions which enable either party to terminate the agreement at any time subject to required notice to the other parties; the risk of unforeseen delays in achieving commercial scale production through MiTAC and/or SYNNEX; the risk that production costs through MiTAC and/or SYNNEX may be higher than expected which would adversely affect Dot Hill's ability to improve product operating margins; the risk that the manufacture of Dot Hill products may be discontinued; the timing and success of sales of Dot Hill products manufactured by MiTAC and SYNNEX and any other unforeseen technological, intellectual property, supply or engineering issues or change in customer preferences. However, there are many other risks not listed here that may affect Dot Hill, as well as the forward-looking statements contained herein. To learn about such risks and uncertainties, read the risk factors set forth in the forms 10-K, 8-K and 10-Q recently filed by Dot Hill. All forward-looking statements speak only as of the date on which they were made. We undertake no obligation to update such statements to reflect circumstances that exist after the date on which they were made.