Culture of Fanatical Support Places Rackspace Number 17 Nation-wide

San Antonio – June 28, 2006 – Rackspace Managed Hosting has been named among the top 50 Best Small & Medium Companies to Work for in America, ranking number 17 in the medium-sized company category. Rackspace was acclaimed for the company’s culture of service, known as “Fanatical Support™”, with a one-of-a-kind work environment where employees, or “Rackers,” are empowered to go above and beyond for their customers and their company. 

“Rackers never settle for ‘just good enough’ when working on behalf of their customers, and Rackspace allows them to identify opportunities internally to make our business run more efficiently in order to continuously raise the level of Fanatical Support,” said Lanham Napier, president, Rackspace Managed Hosting.  “Our core values encompass this idea: Fanatical Support in all that we do; results first – substance over flash; embrace change for excellence; passion for our work; keep our promises; and treat fellow Rackers like friends and family.”

Rackspace’s culture, which has also been recognized in Texas Monthly’s 2006 Top 50 Places to Work in Texas (#16) and the Sunday Times 2006 Best Small/Medium Companies to Work for in the U.K. (#6), promotes job flexibility within the organization, allowing Rackers to find the perfect job fit for their personal strengths as they advance their careers. Over the past two years, nearly 150 employees have transferred jobs within Rackspace.  Rackers are also allotted an annual training budget for extensive professional and personal training through “Rackspace University,” the company’s internal training department which was established to enhance a culture of knowledge, empowerment and balance.  Other Rackspace benefits include quarterly bonuses based upon customer loyalty, quarterly company-wide celebrations, and internal awards and employee recognition programs.

The prestigious Best Small & Medium Companies to Work for in America list was announced on June 26th before an audience of more than 12,000 at the Society for Human Resource Management's (SHRM) 58th Annual Conference & Exposition in Washington, D.C. This is the third year of the list, which ranks the top 25 small (50-499 employees) and top 25 medium-sized (500-999 employees) companies in America that use smart people management strategies to develop successful organizations with highly productive and satisfied workforces. The results were based on a randomly distributed employee opinion survey by the Great Place to Work® Institute (GPTW), and each company evaluated was scored based on employees' responses to a detailed questionnaire about the organizations' workplace cultures.

"Small and medium-sized companies make up the majority of the American economy and workforce. These winning organizations demonstrate that making effective use of the workforce is key to their success, and they must be recognized for their accomplishments,” said SHRM President and CEO Susan R. Meisinger, SPHR.

Great Places to Work® Institute cofounder, Robert Levering, said, "These companies stand out because their employees find them to be places where they can trust the management, have pride in their work and have fun at work. Other companies have much to learn about how to both be productive and do right by their people."

Rackspace is currently hiring for multiple positions throughout the company including sales, support and data center operations.  For more information, please visit www.rackspacecareers.com.
 
About Rackspace Managed Hosting
A recognized leader in the managed hosting space, Rackspace Managed Hosting is a world-class service organization delivering enterprise-level Web infrastructure and managed services to businesses of all sizes. Managing more than 20,000 servers across six data centers worldwide, Rackspace integrates the industry’s best technologies for each customer need and delivers it as a service via the company’s award-winning Fanatical Support™. Through trusted partnerships with its customers, Rackspace serves as an extension of their IT department, enabling customers to focus on their core business.  Founded in 1998, Rackspace has grown more than 50 percent a year since the company’s inception. For more information, please visit www.rackspace.com, or call 800-961-2888.
  
About the Society for Human Resource Management
SHRM is the world's largest association devoted to human resource management. Representing more than 200,000 individual members, the Society's mission is both to serve human resource management professionals and to advance the profession. Founded in 1948, SHRM currently has more than 500 affiliated chapters and members in more than 100 countries. For more information contact SHRM Media Affairs at 703-535-6012.

About Great Place to Work® Institute, Inc.
Great Place to Work® Institute, Inc., is a global research and consulting firm dedicated to "building a better society by helping companies transform their workplaces." Great Place to Work® Institute works with FORTUNE Magazine, HR Magazine and other leading publications in 28 countries around the world to publish and recognize the "Best Companies to Work for". In addition to its global headquarters in San Francisco, Great Place to Work® Institute has 28 affiliates in countries throughout North America, South America, Europe and Asia.