IPO Auction, for Rackspace Hosting

San Antonio, Texas - (The Hosting News) - August 1, 2008 - Rackspace Managed Hosting, has unveiled the auction for the proposed initial public offering of its common stock.



Rackspace's auction website also contains information about how to contact the underwriters to open a brokerage account with one of the underwriters.



Rackspace announced that it expects the offering to price after the stock market closes on or about Thursday, August 7, 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 and 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. Rackspace will offer 12,700,000 shares of its common stock in the offering.



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 aggregate of 2,250,000 additional shares. Rackspace is conducting the offering as a modified Dutch auction. The preliminary prospectus, which is available at Rackspace's auction website www.rackspaceipo.com, contains further information about Rackspace, the offering and the structure of the auction. In addition, the site also provides a link to a recording of the management presentation to prospective investors.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. 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. No offer to buy securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time until the notice of its acceptance has is given after the effective date.

Copies of the preliminary 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.

Rackspace 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. 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 cloud computing platform and Mailtrust (www.mailtrust.com) a provider of business-class hosted email solutions.



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