Rackspace Prices Initial Public Offering of Common Stock

SAN ANTONIO--(Business Wire)--
Rackspace Hosting, Inc. (NYSE: RAX) today announced the initial
public offering of 15,000,000 shares of its common stock at a price of
$12.50 per share. 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 will begin trading on
the New York Stock Exchange under the symbol "RAX" on Friday, August
8, 2008.

Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and
Merrill Lynch & Co. are acting as joint book-running managers for the
offering. W.R. Hambrecht + Co., LLC, Jefferies & 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 & 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; or from Merrill Lynch & Co., 4 World
Financial Center, New York, NY 10080, telephone 866-500-5408.

About Rackspace Hosting

Rackspace(R) Hosting, Inc. provides IT systems and computing as a
service to more than 33,000 customers worldwide. Rackspace Hosting's
offerings include managed hosting, email hosting, cloud hosting and
platform hosting.

Rackspace Hosting, Inc.
Media Relations:
Annalie Drusch, 210-312-7291
media@rackspace.com
or
Investor Relations:
Karl Pichler, 210-312-7290
inquiries@rackspace.com
or
Brunswick Group
Erin Becker, 212-333-3810
ebecker@brunswickgroup.com

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