Rackable Systems Settles Patent Litigation

Business Wire, May 8, 2007

Enforceability of Key Patent Upheld in Court's Decision

FREMONT, Calif. -- Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of servers and storage for large-scale data centers, today announced it has reached a confidential settlement agreement with Super Micro Computer relating to the lawsuit Rackable Systems filed in September 2005 for the infringement of two of Rackable Systems' United States patents, U.S. Patent No. 6,496,366 and U.S. Patent 6,850,408. Specifically, the lawsuit alleged that Super Micro infringed Rackable Systems' patented back-to-back configuration of servers in a specially designed chassis and cabinet as well as the front-mounted I/O connectors that simplify access to the individual servers to improve serviceability while saving space and improving cooling efficiency in the data center.

On April 25, 2007, the Court issued an Order regarding pending summary judgment motions that, among other things, awarded Rackable Systems summary adjudication on the enforceability of its '366 patent, ruling that there was no inequitable conduct in patent prosecution as alleged by Super Micro.

The Court's Order also denied Super Micro's motion for summary judgment on Rackable Systems' inducement of infringement and direct infringement claims. After the Order issued, the parties dismissed their claims and counterclaims in the case pursuant to the terms of a confidential settlement agreement. In addition, prior to the parties' dismissals and in accordance with a stipulation of the parties, the Court vacated its February 2007 decision that certain claims of the '366 and '408 patents were indefinite. Accordingly, Rackable Systems' patent rights continue to be valid and enforceable.

"Rackable Systems is committed to protecting our intellectual property and our design innovations," said Mark Barrenechea, President and CEO of Rackable Systems. "We are pleased with the Court's summary adjudication that our '366 patent is enforceable and that we were able to resolve our litigation with Super Micro."

About Rackable Systems, Inc.

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

To learn more about Rackable Systems, visit www.rackable.com.

Rackable Systems is a registered trademark of Rackable Systems[R], Inc. All other trademarks are property of their respective holders.