Dot Hill Systems Signs Brokerage Agreement with ipCapital Group to Optimize the Value of Dot Hill's Patent Portfolio

Sep 09, 2011, 09:00 ET from Dot Hill Systems Corp.

LONGMONT, Colo. and WILLISTON, Vt., Sept. 9, 2011 /PRNewswire/ -- Dot Hill Systems Corporation (NASDAQ: HILL) (Dot Hill) and ipCapital Group (ipCG), a leading intellectual property (IP) consulting firm, today announced a collaboration to evaluate strategic alternatives for Dot Hill's patent portfolio consisting of 79 patents and 23 patents pending covering data storage, storage software, servers and connectivity.

On September 9, 2011 ipCG has again updated its assessment of Dot Hill's patent portfolio, which it first completed in November 2010 and subsequently updated in February 2011 in which it compared Dot Hill's patents to those of 15 other data storage companies using ipCG's proprietary assessment methodologies.  ipCG again concluded that the average strength of Dot Hill's patents was the strongest in this group, that Dot Hill leads this group in terms of patent generation (defined as the number of patents owned relative to revenues) and that despite its lower revenue in comparison to most of those companies, Dot Hill had the 6th highest number of data storage related patents within this group. The updated study is available at www.dothill.com in the investor relations section on the Events page.

In August 2011, ipCG and Dot Hill entered into a brokerage and consulting agreement in which ipCG will work closely with Dot Hill's executive management, engineers and patent counsel to advise them on alternative monetization options for Dot Hill's patents. The overarching goal of this agreement is to optimize the value of Dot Hill's patent portfolio.

"We are excited about extending our relationship with ipCG into the next phase on the basis of our recent brokerage agreement," stated Dana Kammersgard, President and Chief Executive Officer, Dot Hill Systems. "We are now evaluating strategies that could yield meaningful economic value.  As part of this process we intend to identify and reserve those patents that we believe are core to existing products and future roadmaps and underpin the value proposition we bring to our OEM and channel partners. For certain other patents that are not fundamental to Dot Hill's product roadmap, we will actively consider alternative monetization options, including outright sale and mutually beneficial licensing arrangements."

"Storing information is no longer discretionary and the amount of data that will be stored in corporations, governments and homes will grow astronomically over the coming few years," remarked John Cronin, Managing Director and Chairman of ipCG. "We believe Dot Hill has some very unique and valuable patents that could significantly improve how quickly, how reliably and how efficiently we will save and protect the growing amount of information resident in data centers, "clouds" and home based storage systems. Given the growing interest in patent acquisition and licensing, we are confident that these patent rights could potentially drive significant value for Dot Hill's shareholders."

About Dot Hill

Delivering innovative technology and global support, Dot Hill empowers the OEM and channels 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 and advanced technology and telecommunications companies, as well as government agencies and small and medium enterprise customers. Dot Hill solutions are certified to meet rigorous industry standards and military specifications, as well as RoHS and WEEE international environmental standards. Headquartered in Longmont, Colorado, Dot Hill has offices and/or representatives in China, Germany, Japan, United Kingdom, Singapore, Israel and the United States. For more information, visit us at http://www.dothill.com.

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 strength and potential value of Dot Hill's patents and patent applications, the ability of Dot Hill to monetize its patents and patent applications, whether by entering into licensing or sales arrangements or otherwise, Dot Hill's patents and patent applications driving value for Dot Hill's stockholders, the ability of Dot Hill to maintain technological leadership and increasing demand for Dot Hill's products.  . The risks that contribute to the uncertain nature of the forward-looking statements include, among other things; the risk that there is a willing buyer or buyers for Dot Hill's patents; the risks associated with macroeconomic factors that are outside of Dot Hill's control; the risk that Dot Hill's new products may not prove to be popular; unforeseen product quality, technological, intellectual property, or engineering issues; and the additional risks set forth in the Form 10-Q most recently filed with the Securities and Exchange Commission 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.

About ipCapital Group

ipCG is an  IP strategy consulting practice helping clients develop, manage and use their IP effectively to support strategic business objectives. ipCG offers a range of services and proprietary methodologies to help companies throughout the full lifecycle of IP, from creation and strategic management to value extraction. Since 1998, ipCG has worked with numerous Fortune 500, mid-size, and early-stage companies in a wide variety of industries.

ipCG has been serving clients that range from early stage to Fortune 500 since 1998. Its interdisciplinary team trained in business, law, marketing, and product development provides a systematic and comprehensive view of the full lifecycle of IP, from creation to value extraction. ipCG maximizes business results for clients that seek to develop and execute IP strategies, strengthen and monetize IP portfolios, and establish and implement Intellectual Asset Management (IAM) practices. For more information, visit www.ipcg.com.

The conclusions, estimates, and observations contained in this press release are solely statements of opinion and not statements of fact or recommendations to purchase, hold or sell any securities or make any investment decision. ipCG and its affiliates do not guarantee the accuracy, adequacy or completeness of any information herein and shall not be responsible for any errors or omissions.  

This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts, changes in the intellectual property environment, and other variables.

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Dot Hill Contact: Hanif Jamal Chief Financial Officer Tel: 303-845-3377 Email: investors@dothill.com

Peter Seltzberg Hayden IR Tel: 646-415-8972 Email: peter@haydenir.com

ipCG Contact: Jed Cahill Senior Manager Tel : 802-872-3200 Email : info@ipcg.com

SOURCE Dot Hill Systems Corp.



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