Rackspace Unveils Platform Hosting

NEW YORK – Sept. 18, 2008 – Rackspace® Hosting, Inc. (NYSE: RAX), a leading hosting services provider, today announced from the Web 2.0 Conference the release of their new Platform Hosting solution. Created as a unique alternative to colocation, Platform Hosting gives users the control to manage all aspects of their hosting environment, with the added benefit of managed hardware and aggressive service level agreements, backed by a world-class data center and network infrastructure.

Rackspace’s mission is to change the way companies consume IT services by offering an entire portfolio of solutions to fit every customer’s evolving needs. With Platform Hosting, Rackspace provides 24/7 management of the equipment, network infrastructure and data center. The customer retains full control and manages the everyday administrative responsibility of their hosting environment including the operating system, networking devices, monitoring, storage and applications. This offering gives customers that require more control and flexibility the ability to administer their environment, without the burden of managing the hardware infrastructure.

“For years, colocation has been the only viable option for companies that have the technical expertise on staff to administer their infrastructure but don’t want the added expense or burden of managing their own data center facility,” said Lew Moorman, chief strategy officer, Rackspace Hosting. “However, colocation still requires having resources close by and an inventory of hardware in the event of a failure – which can be a huge burden for IT departments. As a service company, we know that customers value our Fanatical Support® and wanted a solution where the hardware burden still rests with Rackspace but full control of the applications and systems reside with them; thus Platform Hosting was born.”

The Platform Hosting solution easily scales to fit a customer’s growth and complexity needs. A dedicated Rackspace team provides infrastructure support along with design and deployment expertise to ensure customers can focus on their application environment, not the day-to-day burden of managing the infrastructure. Rackspace backs the Platform Hosting solution with its 100 percent Network Uptime Guarantee and one hour hardware replacement guarantee.

“Rackspace’s Platform Hosting is a powerful value proposition for companies that currently host in-house or house their infrastructure in colocation facilities,” said Melanie Posey, research director, IDC. “These companies typically have the internal IT staff to manage the operating system, middleware, and application layers but seek to offload the capital-intensive tasks related to hardware procurement, system administration, and datacenter management. Thus, Platform Hosting represents an ideal "division of labor" solution for in-house hosters and traditional colocation customers."

"As a long time Rackspace customer, we're intimately familiar with the robustness of their network and the top-notch hardware support they offer," said Mark Imbriaco, system administrator, 37signals. "Now that we are using the Platform Hosting service, we're able to take advantage of our own IT management experience, giving us more control over the administration of our infrastructure, which allows us to make changes and address issues faster than ever. At the same time, we're able to rely on Rackspace's world class network, datacenters, and hardware support. The cost savings and convenience are tremendous."

For more information on Rackspace’s Platform Hosting, please visit http://www.rackspace.com/solutions/platform/index.php or stop by the Web 2.0 Conference booth 1637.

About Rackspace Hosting
Rackspace Hosting delivers hosted IT systems and computing to businesses of all sizes. Customers choose Rackspace for its 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 on Rackspace Hosting please visit www.rackspace.com or call 800-961-2888.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements concerning expected development, performance or market acceptance associated with the Platform Hosting release; anticipated operational and financial benefits from the Platform Hosting release; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from the Platform Hosting release may not materialize because this product is not generally accepted in the marketplace, which could occur due to certain factors including (i) a failure to market the product cost effectively, differentiate the product from competitive products or communicate differentiations effectively, (ii) the reliability, quality or compatibility associated with the product, (iii) changes in technology which adversely effect the product’s benefit, (iv) slowdowns in the general economy or technology industry that impact consumer spending habits, (v) internal strategy decisions that impact the product, and (vi) other risks that are described in Rackspace Hosting’s amended registration statement on Form S-1, filed with the SEC on August 5, 2008 and the Form 10-Q for the quarter ended June 30, 2008, filed with the SEC on September 10, 2008. Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.