Rackable Systems, Inc. Announces Exercise of Over-Allotment Option

Business Wire, July 7, 2005

MILPITAS, Calif. -- Rackable Systems, Inc., (Nasdaq:RACK) today announced that the underwriters of its public offering which priced on June 9, 2005 have exercised their option to purchase an additional 728,149 common shares from certain selling stockholders in the offering to cover over-allotments. The Company will not receive any additional proceeds.

The selling stockholders granted a 30-day over-allotment option to the underwriters to purchase up to a total of 937,500 shares of common stock at the initial public offering price, less the underwriting discount.

Thomas Weisel Partners LLC, Piper Jaffray, RBC Capital Markets and Pacific Crest Securities served as underwriters for the offering.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. Copies of the final prospectus relating to the offering may be obtained by contacting Thomas Weisel Partners LLC at One Montgomery Street, San Francisco, California 94104 or by calling 415-364-2720. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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.