Dunlap was selected by the Mystics with the 11th overall pick in the 2011 WNBA draft. She averaged 2.3 points and 1.7 rebounds per game in 26 games as a rookie. Dunlap posted her career-highs of 19 points and eight rebounds in a July 3 game against the Storm.
"We had Victoria on our close radar last year going into the draft," Storm head coach and general manager Brian Agler said in a press release. "We like her versatility offensively. Athletically, she's as good as there is in the league. We had the opportunity to bring her on our team and we took advantage of it."
The Storm also announced on Tuesday that they have re-signed veteran guard Katie Smith.
Smith is the all-time leading scorer in women's professional basketball history and No. 3 on the WNBA all-time career scoring list, slightly ahead of Storm teammate Lauren Jackson.
"Katie gives us great depth at the guard positions, she can play some three and she's proven to be one of the ultimate winners in the WNBA," Agler said. "I think that as we keep moving forward, we don't want to lose our identity as being a defensive-minded, physically and mentally tough team. She definitely brings all those attributes."
Seattle has been busy this offseason, acquiring the No. 2 pick in this year's draft from Chicago in exchange for Swin Cash and Le'coe Willingham. They also re-signed point guard Sue Bird and guard Tanisha Wright as well as signing free-agent center and former No. 1 overall draft pick Ann Wauters.
The Storm open the 2012 season on May 18, hosting the Los Angeles Sparks.
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