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

Business Wire, Nov 9, 2005

MILPITIS, Calif. -- Rackable Systems, Inc. (Nasdaq:RACK) today announced that it has filed a registration statement with the Securities and Exchange Commission for the proposed public offering of 8,000,000 shares of common stock, of which 2,600,000 shares are to be sold by Rackable Systems in a new financing and 5,400,000 shares are to be sold by selling stockholders, including certain members of management. Thomas Weisel Partners LLC, Pacific Crest Securities, RBC Capital Markets and SG Cowen & Co. are the managing underwriters in the offering. It is expected that the underwriters will have an option to purchase up to an additional 1,200,000 shares of common stock from certain of the selling stockholders solely to cover over-allotments.

Copies of the prospectus relating to the offering may be obtained, when available, from the offices of Thomas Weisel Partners LLC at One Montgomery Street, San Francisco, CA 94104, 415-364-2720, Pacific Crest Securities at 111 SW Fifth Ave., 42nd Floor, Portland, OR 97204, RBC Capital Markets, One Liberty Plaza, New York, NY 10006, 212-428-6200, and SG Cowen & Co. at 1221 Avenue of the Americas, 6th Floor, New York, NY 10020, 646-562-1000.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. 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 State in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such State.