New Partner Model Supports System Integrators, Advertising and Media Agencies, Consulting Firms and Web Developers and Designers with Solid Web Infrastructure and Referral Benefits

SAN ANTONIO – Feb. 26, 2007 – Rackspace Managed Hosting™, a leading global provider of managed hosting services, today announced enhancements to its Partner Network for all industries including System Integrators, Advertising and Media Agencies, Consulting Firms, and Web Developers and Designers. The Partner Network is designed to give customers the ability to grow their business and build loyalty through Rackspace’s unparalleled managed hosting expertise backed by Fanatical Support™. The Rackspace Partner Network extends a combined customer value proposition, offering solid managed hosting solutions that facilitate reciprocal business for partners and customer growth.

An expansion of Rackspace’s already successful Partner Network, the new model offers three different partnership categories to enable partners to select the best fit for them based on their company size and business goals. Additionally, members of the Partner Network now have the opportunity to earn marketing funds to aid in the promotion of an organization’s partnership with Rackspace. The company’s investment in its Partner Network program is a key part of Rackspace’s growth strategy for 2007. Rackspace has more than 450 members in various industries in its Partner Network including Blue Dingo, MySQL, Salesforce.com, Webmail.us and SEO, Inc.

Ayuda, a provider of intelligent planning and purchasing support of telecommunications services, relies on Rackspace’s proven hosting expertise to take care of its clients and also enjoys the benefits from Rackspace’s Partner Network. “As a hosting specialist, Rackspace’s knowledge provides our customers with a reliable and rock-solid infrastructure on which to run their businesses,” said Tina Burke, president, Ayuda. “By taking away the IT problems and headaches that can be detrimental to new businesses, our clients can focus more on growing their companies. It has also been highly beneficial for us with Rackspace returning the favor and sending potential customers our way.”

The new Partner Network is segmented into three categories based on an organization’s size and business goals:

· Select Partner: These partners will have a relationship with a dedicated sales executive and channel manager. Select Partners will have access to Rackspace sales and marketing materials, making it easy to present Rackspace to their customers. The Select Partner is ideal for individuals and organizations with occasional customer hosting needs; choosing a revenue share option based on business needs.

· Premier Partner: These partners will collaborate with a dedicated sales executive, marketing manager and channel manager to develop programs by accessing the Rackspace sales management tool, as well as using co-branded sales and marketing materials. The Premier Partner is ideal for organizations with frequent hosting needs; receiving a quarterly strategy call with their dedicated sales executive, marketing manager and channel manager from Rackspace and the ability to participate in a Market Development Fund (MDF) program.

· Business Partner: This partnership is ideal for national or international partners seeking high level sales, marketing and technical support. Business Partners will be able to leverage a synergistic relationship between products and customers. Monthly strategy sessions allow our Business Partners and Rackspace the opportunity to develop shared goals, plans, and onsite training and consultation.