Frost & Sullivan Recognizes Rackspace as a Leader Creating a Path for Positive Change in the U.S. Hosting Industry

SAN ANTONIO —July 21, 2003—Rackspace Managed Hosting, the leading managed hosting provider, today announced it has been awarded the 2003 Frost & Sullivan Customer Value Enhancement (CVE) Award. The award is given each year to the company that has best-demonstrated innovative and superior customer service within their industry. For two consecutive years, Frost & Sullivan has honored Rackspace for customer service.

Rackspace was cited by Frost & Sullivan as a company that “is set apart from its competitors in the managed hosting business by the way in which the company has raised the bar of service for its segment and enhanced the value of its service to new and existing customers.” The company is recognized for its Fanatical Support™.

Frost & Sullivan touted the 2002 launch of Rackspace’s Intensive Hosting division, for complex Microsoft deployments only, as an example of the company’s commitment to customer service. The analyst firm commended Rackspace's ability to meet and exceed customers'return on investment expectations by taking a proactive approach to managed hosting.

"Over the past three years, the U.S. Web hosting market has been characterized by acquisitions, liquidations, and reorganizations, driving customers to reconsider outsourcing hosting operations, “ said Jarad Carleton, senior analyst for Frost & Sullivan. “Throughout the industry turbulence of the past few years, Rackspace has been a bulwark of financial stability with a commitment to its ideal of Fanatical Support and to long-term growth. Rackspace's smart growth strategy has enhanced its value to its client base by offering stability as well as superior customer service that has been recognized industry-wide."

To determine its award recipient, Frost & Sullivan analysts tracked year-to-year growth rates, market expansion and customer satisfaction. Rackspace experienced significant growth in all these areas according to Frost & Sullivan. The analyst firm also noted that Rackspace has been able to “remain solvent as a result of listening to and understanding what customers need and expect from a managed Web hosting company and appropriately responding to those needs.”

“Fanatical Support has been a priority at Rackspace since we began operating, and we continue to follow that philosophy today,” said David Bryce, Rackspace vice president of Customer Care. “First-rate customer service continues to be the driving force behind much of the recognition Rackspace receives, and these awards are truly an honor to our entire staff.”

In April 2002, Frost & Sullivan honored Rackspace for its strong focus on customer satisfaction and Fanatical Support.