Rackable Updates Financial Outlook

FREMONT, Calif. -- Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of servers and storage products for large-scale data centers, today provided an update to its guidance on the results of operations for fiscal year 2008.

Rackable Systems was adversely impacted by the economic turmoil during the fourth quarter. However, we are acting quickly and decisively to match expenses to revenues, including having reduced our work force by 15% this month. We have also repurposed investment dollars to increase our commitment to engineering and new products. Our cost control and working capital actions resulted in strong inventory controls and cash management, despite a challenging quarter,” said Mark Barrenechea, president and CEO of Rackable Systems. “We continue to protect our strong balance sheet, manage our working capital, and be debt-free. For the long-term, we are innovating to win and our new products are being well received.”

Rackable Systems Inc.