Rackspace Announces Second Quarter Financial Results

Business Wire, Sept 28, 2007

SAN ANTONIO -- Rackspace[R] Managed Hosting today announced its second quarter results for 2007. The company's revenue was $84.0 million in the second quarter of 2007, representing a 61.6 percent increase over the second quarter of 2006. Rackspace also reported positive net income for the second quarter of 2007 and has experienced 34 consecutive quarters of revenue growth since the company's inception.

In Q2 2007, Rackspace attracted more than 1,100 new customers, many signing with the company to support their software-as-a-service applications. Additionally, Rackspace was named Microsoft's Worldwide Hosting Provider of the Year, Ernst & Young's Entrepreneur of the Year and was recognized as the Best Customer Service organization by the American Business Awards.

"Rackspace has posted a strong quarter and continues to attract new customers that entrust their mission-critical applications and back-end systems to us," said Lanham Napier, president and chief executive officer, Rackspace Managed Hosting. "We've been recognized by our industry for our growth and our Fanatical Support[TM], and we'll continue to focus on these as we capture more market share in the IT hosting space."

About Rackspace Managed Hosting

A recognized leader in the global managed hosting market, Rackspace Managed Hosting delivers enterprise-level managed services to businesses of all sizes. Serving more than 15,000 customers in eight data centers worldwide, Rackspace integrates the industry's best technologies for each customer need and delivers it as a service via the company's award-winning Fanatical Support[TM]. Through trusted relationships, Rackspace serves as an extension of its customers' IT departments, enabling them to focus on their core business. Since its inception in 1998, Rackspace has grown more than 50 percent a year. For more information, please visit www.rackspace.com, or call 800-961-2888.