Rackspace Prices IPO

SAN ANTONIO -- 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.

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