Dot Hill Expects $50 Million to $52 Million Revenue for 4Q07

Dot Hill Systems Corp. announced today that it expects to report revenue
results for the quarter ended December 31, 2007 to be above the company
guidance issued on November 8, 2007.

Based upon preliminary
results, the company expects to report revenue for the fourth quarter
of 2007 to be in the range of $50 million to $52 million compared to a
previous guidance range of $44 million to $48 million. The company
expects loss per share to be within the previous guidance range of
$0.10 to $0.15 on a fully diluted basis before consideration for
potential goodwill impairment.

The
company is finalizing its financial plans for 2008 and is currently
evaluating various potential restructuring and cost reduction
opportunities. These potential restructuring and cost saving options,
if adopted, could result in one-time charges of up to $10 million and
could have as much as a $2 million to $4 million impact on cash in 2008
and beyond. These restructurings and cost reductions, if adopted, would
be expected to lower ongoing operating expenses in 2008.

Dot
Hill is still completing its review of its fourth quarter 2007
financial results which includes an analysis of the impairment of
goodwill.

Dot Hill Systems Corp.