Rackable Systems Announces a Follow-On Offering of 8,000,000 Shares of Common Stock

Business Wire, Dec 2, 2005

MILPITAS, Calif. -- Rackable Systems, Inc. (Nasdaq:RACK) today announced the offering of 8,000,000 shares of its common stock at a price to the public of $19.00 per share. Of the 8,000,000 shares, 2,600,000 shares were sold by Rackable Systems for total net proceeds of $46.4 million in new financing, after deducting underwriting discounts and commissions and estimated offering expenses, and 5,400,000 shares were sold by selling stockholders, including certain members of management. The managing underwriters of the offering are Thomas Weisel Partners LLC, acting as the lead manager, with Pacific Crest Securities, RBC Capital Markets, and SG Cowen & Co. acting as co-managers. The selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares to cover over-allotments, if any. Rackable Systems will not receive any proceeds from the sales of shares by the selling stockholders. A final prospectus relating to the offering may be obtained from Thomas Weisel Partners LLC's prospectus department at One Montgomery Street, San Francisco, CA 94104, 415-364-2720.

About Rackable Systems

Rackable Systems, Inc. is a provider of servers and storage products for scale out data center deployments. The company's servers are designed to provide benefits in the areas of density, thermal efficiency, serviceability, power distribution and remote management. Founded in 1999 and based in Milpitas, California, Rackable Systems serves Internet, semiconductor design, enterprise software, federal government, entertainment, financial services, oil and gas exploration and biotechnology customers worldwide.

Rackable Systems(R) is a registered trademark of Rackable Systems, Inc.