San Antonio, Texas - (The Hosting News) - January 31, 2006 - Dedicated server company, Rackspace Managed Hosting, has published its continuing operations fourth quarter and year-end results for 2005. The company's revenue was $41 million in the fourth quarter of 2005 and $139 million for the year, representing a 58 percent increase over the fourth quarter of 2004 and a 60 percent increase over 2004 annual revenues.

According to the company, Rackspace grew its net income by 129 percent, to 11 million, in 2005.

Rackspace adopted Economic Value Added (EVA) in 2005 to focus the company on creating sustainable shareholder value. The company's EVA for fourth quarter 2005 was $2 million and $6 million for the year.

Lanham Napier, president, Rackspace Managed Hosting commented on the results, ''Rackspace achieved a significant milestone in 2005, surpassing the $100 million mark in revenue and begins 2006 with a strong financial position and a loyal customer base that grows with us month over month. The secret to our success is our delivery of Fanatical Support to our customers. As we continue our mission to make hosting an excellent service experience for all enterprises, we're gaining market share against players like IBM, Savvis and AT and T.''

Rackspace added more than 600 new customers in the fourth quarter of 2005 and more than 2,000 new customers for the year. To support the company's rapid growth, Rackspace added 250 employees in 2005 and plans to hire up to 400 more in 2006 across all areas of the company including sales, support and data center operations.

Mr. Napier added that it is Rackspace's "fanatical" company culture which drives the success of the company, ''First and foremost we look for a great service attitude and then leverage the individual strengths of each employee to allow them to do what they do best everyday. The result is happy, engaged employees fueling company growth of more than 50 percent a year.''

To learn more about Rackspace Managed Hosting, please visit: www.rackspace.com.