Rackspace Managed Hosting's first quarter results for 2007 reflects continued track record of strong financial performance

June 29, 2007 - Rackspace® Managed Hosting today announced its first quarter results for 2007. The company’s revenue was $75.2 million in the first quarter of 2007, representing a 64.4 percent increase over the first quarter of 2006. Rackspace also reported positive net income for the first quarter of 2007 and has experienced 33 consecutive quarters of revenue growth since the company’s inception.

In Q1 2007, Rackspace signed more than 900 new customers, including MTV Networks, DuPont, Peabody Trust and IDG Communications. Much of the company’s new growth is attributed to customers selecting Rackspace to host their Web 2.0 and Software–as-a-Service platforms.

“Rackspace’s first quarter performance is a strong start for 2007 and demonstrates our ability to grab new market share while growing with our existing customers,” said Lanham Napier, president and CEO, Rackspace Managed Hosting. “The company remains highly focused on delivering Fanatical Support™ to our customers and delivering on our long term financial goals.”

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