Rackspace Managed Hosting obtained a new revolving credit and term loan agreement with Comerica Bank and JPMorgan Chase

May 24, 2007 — Rackspace® Managed Hosting today announced that it has entered into a new revolving credit and term loan agreement with Comerica Bank and JPMorgan Chase. The new $45 million credit facility may be used for temporary financing arrangements, while the $25 million term loan may be tapped to finance capital expenditures related to customer growth, including new hardware agreements and data center build outs.

“These facilities from Comerica and JPMorgan Chase provide Rackspace with growth capital to help support our forecasted expansions on attractive terms enabling us to further enhance our award winning Fanatical Support™,” said Major Horton, chief financial officer, Rackspace Managed Hosting. “As the company builds out facilities and expands into new markets, the revolver-based structure will enable the company to lower its cost of capital while also giving it the capability to pursue attractive business opportunities that are consistent with Rackspace’s long-term strategy.”

“Comerica’s Technology & Life Sciences Division has extensive experience in providing innovative debt financing to growth companies like Rackspace with proven technology and strong management teams,” said Tim Klitch, senior vice president, Technology & Life Sciences, Comerica Bank. “Comerica has a long-term relationship with Rackspace and it’s exciting to watch their growth in the market.”

For more information, visit www.rackspace.com, or call 800-961-2888.