Five-Year Revenue Growth Rate of 3,581 Percent Earns Rackspace A Coveted Spot on the Deloitte 2004 Technology Fast 500 Ranking

SAN ANTONIO — October 27, 2004 — Rackspace Managed Hosting, the fastest growing managed hosting company, is the 73rd fastest-growing technology firm in all of North America, according to the Deloitte 2004 Technology Fast 500 ranking. The Deloitte award is a prestigious industry list that measures the long-term revenue growth performance of leading tech-oriented companies. Rackspace was honored for achieving an exceptional 3,581 percent growth in revenue from 1999 to 2003.

“Being one of the 500 fastest growing technology companies in North America is an impressive accomplishment. We commend Rackspace Managed Hosting for making the Deloitte Technology Fast 500 with a phenomenal 3,581 percent growth rate over five years,” said Mark A. Evans, national managing partner of Deloitte’s Technology, Media & Telecommunications Group.

Rackspace was one of just 33 Texas-based companies to make the highly-regarded Deloitte Technology Fast 500 list for North America, an achievement that puts the San Antonio-based managed hosting provider in the company of some of the world’s best known tech firms.  The search engine giant Google was ranked the number one fastest-growing tech firm in North America on Deloitte’s 2004 Fast 500 list.

“Google is a household name recognized for its success in the technology sector, and for Rackspace to earn a place on the same Fast 500 list is a real testament to our accomplishments,” said Graham Weston, chief executive officer, Rackspace Managed Hosting. “We give our customers world class managed hosting backed by Fanatical Support™, and in return they’ve made us one of North America’s most successful technology companies.”

In September, Rackspace was also named to the Deloitte Texas Crescent Technology Fast 50 Program, a listing of the 50 fastest growing tech firms in the state.  Rackspace secured the number five ranking in Texas.

The Fast 500 list is compiled from Deloitte’s 19 regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research. To qualify for the Fast 500, entrants must have had 1999 operating revenues of at least $50,000 USD and $75,000 CD for the United States and Canada, respectively; and 2003 operating revenues must be at least $1 million USD or CD.

For more information on the Deloitte Technology Fast 500 or Fast 50 programs, visit www.fast500.com.

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About Rackspace Managed Hosting

Rackspace Managed Hosting™ is the fastest-growing managed hosting provider for customers of all sizes – from start-ups to enterprise customers. Founded in 1998, Rackspace has built a world-class service organization based on its philosophy of Fanatical Support™. The company offers a wide range of managed services for enterprise hosting platforms and currently hosts 15 percent of the Fortune 100 Companies. For more information, visit www.rackspace.com, or call 800-961-2888.