Rackspace Hosting Files Registration Statement for Initial Public Offering

Business Wire, April 25, 2008

SAN ANTONIO -- Rackspace, Inc. (Rackspace[R] Hosting) today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common stock. The shares in the offering will be offered by Rackspace Hosting and certain selling stockholders. The number of shares to be offered and the price range for the offering have not been determined.

Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and Merrill Lynch & Co. will act as joint book-running managers of the offering.

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

Copies of the preliminary prospectus for the offering, when available, may be obtained from Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street, New York, New York 10004, by facsimile at 212-902-9316 or by e-mail at prospectus-ny@ny.email.gs.com; from Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010, telephone 800-221-1037; and from Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080, telephone 866-500-5408.

About Rackspace Hosting

Rackspace Hosting delivers a diverse suite of enterprise-class hosted IT services to businesses of all sizes. Customers choose Rackspace for its hosting specialization and expertise, backed by the company's award-winning Fanatical Support[R]. By integrating the industry's best technologies and delivering them as services, Rackspace Hosting serves as an extension of its customers' IT departments. Because Rackspace Hosting removes the burden of infrastructure maintenance and management, customers can focus on their core business.