Rackspace Strategy Shift Unveils New Corporate Identity

Rackspace Emphasizes Brand's Focus on Delivering Hosted IT
Services with Fanatical Support
SAN ANTONIO--(Business Wire)--Rackspace(R) today announced its new corporate identity reflecting
its shift into IT hosting, transforming traditional IT functions into
consumable services via the web. As more enterprises transition from
purchasing in-house computing assets to leveraging service providers,
Rackspace now offers a suite of hosted IT services that are more
reliable and provide better value, including virtualization, hosted
mail, custom application support, back-end IT and storage.

"Rackspace has been focused on Fanatical Support(R) since the
beginning--it's in our DNA--and our new identity reflects that," said
Lanham Napier, president and CEO, Rackspace. "Now we see the industry
shifting to a service-based paradigm. Fanatical Support has been the
key to our managed hosting success for the past nine years and will
continue to propel us as we embark upon this new era of IT hosting."

The newly-launched name, "Rackspace", drops the "Managed Hosting"
terminology, signifying Rackspace's new breadth of hosted services
supporting companies of all sizes. In addition to Rackspace's
traditional managed hosting offering, its venture companies also
complement the new strategy. They include:

-- Mosso(R), the Rackspace cloud computing brand

-- Mailtrust(TM), the Rackspace business-class hosted email brand

The new logo incorporates Rackspace's popular "FANATIGUY(TM)"
icon, which better reflects Rackspace's people-centric culture and
award-winning Fanatical Support. It also highlights the company's
transition from servers to services. Rackspace is moving beyond the
historical hardware focus of the web hosting industry and towards a
services strategy, assembling the best technologies in the industry
and delivering them as a service. Fanatical Support has always been
the key differentiator for Rackspace, but through the strategy shift,
service will be accentuated even more.

"As the IT hosting sector evolves, it is becoming apparent that
the true competitive differentiator is customer support," said Daniel
Golding, vice president and research director, Tier 1 Research. "As
the very idea of IT hosting makes the leap into enterprise adoption,
those firms that can offer truly outstanding support will come out on
top."

Napier added, "As Rackspace leads the industry's transition to
hosted services, we will build upon our core managed hosting business
and Fanatical Support. Our new services will compliment our existing
portfolio allowing customers to easily offload more and more IT
functions to Rackspace."

Since the company's founding in 1998, Rackspace has grown to more
than 2,000 employees world wide, powering through the dotcom bust and
moving up to become a leader in the managed hosting space. Growing at
approximately 50 percent per year in revenue since the company's
inception nearly ten years ago, Rackspace has been named Microsoft's
"Hosting Provider of the Year" three times, The American Business
Awards "Best Customer Service Organization" twice and a "Leader" in
Gartner Inc.'s annual North American Web Hosting Magic Quadrant since
2004.

About Rackspace

A recognized leader in the global IT marketplace, Rackspace(R)
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 serves as an extension of
its customers' IT departments. Because Rackspace removes the burden of
infrastructure maintenance and management, customers can focus on
their core business. Rackspace's portfolio of companies also includes
the Mosso(R) (www.mosso.com) cloud computing platform and
Mailtrust(TM) (www.mailtrust.com), a provider of business-class hosted
email solutions. For more information on Rackspace, please visit
www.rackspace.com, or call 800-961-2888.

Rackspace Managed Hosting
Halli Hollimon, 210-312-4617
hhollimo@rackspace.com

Copyright Business Wire 2008