Rackspace Hosting Files Registration Statement for Initial Public Offering

SAN ANTONIO--(Business Wire)--
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.

Rackspace Hosting, San Antonio
Annalie Drusch, 210-312-7291
inquiries@rackspace.com

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