Rackspace Hosting, a leading hosting services provider, today announced recent investments in its award winning Fanatical Support®, including additional leadership, processes and tools.

Industry Veteran Named New Senior Vice President for Customer Support

SAN ANTONIO – November 11, 2008 – Rackspace® Hosting (NYSE: RAX), a leading hosting services provider, today announced recent investments in its award winning Fanatical Support®, including additional leadership, processes and tools. In May 2008 the company named John Lionato to senior vice president for customer care. Lionato comes to Rackspace with more than 20 years of global industry experience in managing operations. In his role at Rackspace, Lionato is responsible for the continued delivery of Fanatical Support and the evolution of Rackspace’s consultative approach to working with its customers.

“By adding John’s strong professional experience and background to our customer support arena, we are demonstrating how dedicated we are to ensuring we employ the right people to maintain Rackspace as a hosting specialist. John is evolving and growing our award-winning Fanatical Support to maintain superior service levels as we continue to grow our customer base,” said Lanham Napier, president and chief executive officer, Rackspace Hosting. “He brings an understanding of customer support and service that aligns nicely with our primary mission to become one of the world’s great service companies.”

At the heart of Rackspace’s mission to provide superior customer service are the customer service analysis tool, NetPromoter, and the business management process, Six Sigma. A long time user of Net Promoter, a standard for measuring and implementing customer loyalty strategies, Rackspace is teaming up with Satmetrix to study the survey results and drive improvements to enrich the customer experience. Rackspace is also utilizing a lean version of the Six Sigma tools and methodologies to improve the service experience for customers. Enhancements from these tools are already being used to drive customer centric service and mindset throughout the organization and its infrastructure.

“My goal includes helping ‘Rackers’ spend more of their time focused on creatively delivering world class service to our customers,” said Lionato. “Fanatical Support demands a continuously evolving program that delivers new services our customers will appreciate. To these ends, the customer support teams are focused on improving our capabilities, implementing proven process tools such as lean Six Sigma and installing metrics like the Net Promoter Score to help us better understand the needs of our customers.”

Prior to joining Rackspace, Lionato spent seven years at Intuit and 13 years at General Electric.  Most recently, he was a vice president with Intuit’s Information Technology organization and held leadership positions in the QuickBooks and Outsourced Payroll divisions as well as in Process Excellence. While at GE, Mr. Lionato held a variety of leadership positions in Operations, Mergers & Acquisitions and Quality.  He holds a Bachelor of Science in Psychology from Fordham University in New York and a Juris Doctorate from Quinnipiac University College of Law in Connecticut.

About Rackspace Hosting
As the world’s leader and specialist in hosting, Rackspace Hosting is changing the way businesses worldwide buy IT. Rackspace delivers computing-as-a-service, integrating the industry’s best technologies into a flexible service offering, making computing more reliable and affordable. A trusted partner to companies of all sizes, Rackspace enables IT departments to be more effective. Rackspace is distinguished by its award-winning Fanatical Support®, furthering the company’s mission to be one of the world’s greatest service companies. Rackspace is recognized as one of FORTUNE Magazine’s 100 Best companies to work for, ranking number 32 on the 2008 list. Rackspace’s portfolio of hosted IT services includes managed hosting (www.rackspace.com), email hosting (www.mailtrust.com) and cloud hosting (www.mosso.com). For more information on Rackspace Hosting please visit www.rackspace.com or call 800-961-2888.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements concerning anticipated operational and financial benefits from Rackspace strategies related to changes in leadership and implementation of processes and tools; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits from Rackspace strategies related to changes in leadership and implementation of processes and tools may not materialize and other risks that are described in Rackspace Hosting’s amended registration statement on Form S-1, filed with the SEC on August 5, 2008 and our report on Form 10-Q for the quarter ended June 30, 2008, filed with the SEC on September 10, 2008. Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

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