Rackspace Managed Hosting, Institutes Initial Public Offering of Common Stock

San Antonio, Texas - (The Hosting News) - August 13, 2008 - The initial public offering of 15,000,000 shares of Rackspace Hosting, Inc.'s common stock at a price of $12.50 per share, has begun.

Rackspace will offer 12,700,000 shares of its common stock in the offering and the selling stockholders will offer an additional 2,300,000 shares of common stock in the offering. Rackspace and the selling stockholders have also granted the underwriters a 30-day option to purchase up to an additional 2,250,000 shares to cover over-allotments. Rackspace's common stock began trading on the New York Stock Exchange under the symbol 'RAX' on Friday, August 8, 2008.

Goldman, Sachs and Co., Credit Suisse Securities (USA) LLC and Merrill Lynch and Co. are acting as joint book-running managers for the offering. W.R. Hambrecht + Co., LLC, Jefferies and Company, Inc., Cowen and Company, LLC, RBC Capital Markets Corporation, JMP Securities LLC, Signal Hill Capital Group LLC, and E*TRADE Securities LLC are the co-managers for the offering.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. 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 final prospectus for the offering may be obtained from Goldman, Sachs and 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; or from Merrill Lynch and Co., 4 World Financial Center, New York, NY 10080.

Rackspace Hosting delivers hosted IT systems and computing to businesses of all sizes, providing hosting specialization and expertise, backed by the company's award-winning Fanatical Support. Customers can receive benefits such as higher quality, lower cost and better performance from Rackspace's vast knowledge of industry best-practices. Because Rackspace removes the burden of IT systems maintenance and management, customers can focus on key areas that differentiate their business. Rackspace's portfolio of hosted services includes managed hosting (www.rackspace.com), email hosting (www.mailtrust.com) and cloud hosting (www.mosso.com). Rackspace is recognized as one of FORTUNE Magazine's 100 Best companies to work for, ranking number 32 on the 2008 list.

For more information about Rackspace Managed Hosting, please visit: www.rackspace.com.

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