Rackspace Greenspace Initiative hits one year mark

Company's Greenspace Initiative Celebrates One Year Anniversary through Customer Offerings,
Corporate Conservation and Employee Education 
	
Rackspace Survey Shows the Economy is Affecting Green Attitudes 

SAN ANTONIO - June 30, 2008 - Rackspace® Hosting, a leading hosting services provider, began taking
a more proactive role in environmental responsibility by launching the Greenspace® Initiative in
2007, which promotes energy conservation through customer offerings, company conservation and
employee education on green living. Since that time, Rackspace has focused on providing their
customers with offerings that include the most energy efficient products available, the ability to
offset carbon emissions and greener services, such as virtualization and cloud hosting. Rackspace
has also initiated company wide conservation projects, including construction of a data center
powered by renewable energy, implementation of conservation construction practices for its new
headquarter facility and hosting a fair geared toward educating employees on environmental issues.

Rackspace believes that environmental responsibility is still a growing concern for hosting
customers, but that customers may not be willing to be exposed to higher costs to address them;
this according to the second annual "Green" survey conducted by the company, which was created by
Rackspace to gain insight into the trends and environmental issues affecting its customers.  

According to this most recent green survey, only 41 percent of respondents are willing to pay more
for green products and services this year; down significantly from the 52 percent of respondents
that were willing to pay more last year.  Also this year, only 28 percent are willing to trade
server performance for lower carbon emissions.  One significant increase in responses this year
showed that 69 percent of respondents are still concerned and either looking for ways to reduce the
impact their company has on the environment or actively addressing the issue; this up seven percent
from last year.     
"It's interesting to see that customers still think green is very important, but today they may be
less willing to pay more or trade performance for lower carbon emissions. Rackspace understands
these concerns, and the economic pressure points, and is working diligently to leverage the
available technology in ways that don't impose additional costs on the customer," said John
Engates, CTO, Rackspace Hosting. "Since launching Greenspace last year, we have rolled out a number
of energy efficient and environmentally sound product and initiatives and continue to look for new
ways to be environmentally conscious."

Customer Offerings

Since the launch of Greenspace, Rackspace introduced its Green Server Configurations with Dell's
PowerEdge 2970 servers and AMD's Quad-Core Opteron processor, their most energy efficient servers
and processors available on the market today.  Another product choice is Rackspace's dedicated
virtualization offering built on VMWare's third-generation software suite, which allows customers
to save energy by consolidating physical servers.  Also, Mosso®, Rackspace's popular cloud
computing offering, includes a cloud platform and storage offering which allows customers to only
pay for server capacity they are using without wasting idle energy and space. 

Environmentally-responsible solutions from Rackspace IT partners are key to Greenspace's success.
Dell, one of Rackspace's biggest partners, recently worked with the company to develop Dell's
Server Multipack solution, an operational and energy-efficient option for customers ordering
PowerEdge servers to better fit Rackspace's needs.  The Dell Multi-pack helps reduce excess
packaging on-site, lowers ecological impact, minimizes costs of associated material and disposal
cost as well as reduces required storage space. This is estimated to cut the amount of cardboard
used by 35 percent, polyethylene foam by 74 percent and results in the complete elimination of wood
pallets in the shipment and deployment of these servers. 
 
"Managing data centers and servers which are known to be significant energy consumers and carbon
emitters, puts Rackspace in a difficult position. But they are doing an outstanding job addressing
the issues head-on and encouraging their vendors to help by creating more energy efficient products
like Dell's 2970 and AMD's Quad-Core," said Harper Reed, CTO, skinnyCorp, Inc. "Rackspace is one of
the only hosting providers that I've seen make green hosting a priority. They make it easy for me
to do my part."  

Company Conservation

Internally, Rackspace continues to work towards energy conservation and sustainability.  Over the
past year, Rackspace has built its first green data center, which is fueled by renewable energy, in
Slough, England.  Just last week, the first customer servers went online at the new data center.
The data center is now powered by wood chips, waste paper and fiber fuel to generate electricity,
hot water and steam. 

In the company's new corporate headquarters, which has completed phase one of development,
Rackspace is undergoing LEED (Leadership in Energy and Environmental Design) Certification with the
U.S. Green Building Council, which oversees sustainable building practices.  This recycled mall
will feature key LEED certification components including reused materials, the absence of Styrofoam
cups, individual recycle bins, targeted climate control per employee, motion sensitive lighting,
water conservation and more. 

Employee Education

On June 17, Rackspace held its second annual employee Green Day aimed at educating employees about
environmental programs around the community and what they can personally do to live a greener life.
The company-wide fair included over 25 local vendors and consisted of demonstrations in recycling
and mulching, test drives of hybrid cars and Vespas, information on solar power and windtricity,
and a full Farmer's Market. 

The methodology for Rackspace's survey research involved sending an email survey to approximately
3,000 US-based Rackspace customers. Approximately six percent of survey recipients responded to the
questions. Detailed information and the full survey report can be found at
http://www.rackspace.com/downloads/surveys/GreenSurvey200.... The full 2007 survey report can be
found at http://www.rackspace.com/downloads/surveys/GreenSurvey200.... 

For more information on Rackspace's Greenspace initiative, please visit
http://www.rackspace.com/information/events/green.php. 

About Rackspace Hosting
Rackspace Hosting delivers hosted IT systems and computing to businesses of all sizes. Customers
choose Rackspace for its hosting specialization and expertise, backed by the company's
award-winning Fanatical Support®. Customers can receive benefits such as higher quality, lower cost
and better performance from Rackspace's vast knowledge of industry best-practices.  Because
Rackspace removes the burden of IT systems maintenance and management, customers can focus on key
areas that differentiate their business. Rackspace's portfolio of hosted services includes managed
hosting (www.rackspace.com), email hosting (www.mailtrust.com) and cloud hosting (www.mosso.com).
Rackspace is recognized as one of FORTUNE Magazine's 100 Best companies to work for, ranking number
32 on the 2008 list.  For more information on Rackspace Hosting please visit www.rackspace.com or
call 800-961-2888.