IPO Profile: Rackspace Hosting Inc.

San Antonio, Texas • (210) 312-4000 • www.rackspace.com

IPO DETAILS

IPO date: 8/8/08

Exchange and Ticker: NYSE: RAX

Filing Range: 12.7M shares @ $12.00 to $16.00

Offering Price: $12.50

Close on First Day: $10.01

Offering Size: $187.5M

Shares Outstanding: 115,444,808

Underwriters: Goldman Sachs & Co./ Credit Suisse/ Merrill Lynch

Co-managers: WR Hambrecht & Co./ Jefferies & Co. Inc./ Cowen/ RBC Capital Markets/ JMP Securities / Signal Hill Capital Group / E*Trade Securities Inc.

Company Counsel: Wilson Sonsini Goodrich & Rosati

Manager Counsel: DLA Piper

Auditor: KPMG LLP

Market Capitalization on 8/3108: $1310.30M

Close price at current month end: $11.35

COMPANY DESCRIPTION

Provides Web hosting services. The company’s offerings include website development, Web-based IT systems and computing as a service. Rackspace operates eight data centers in the United States and the United Kingdom. Competitors include AT&T, EDS, Equinix, IBM and SAVVIS

VENTURE BACKERS

2M Technology Group, Norwest Venture Partners, Sequoia Capital

STOCK HOLDINGS OF VC FUNDS

(For company directors or owners of 5% or more of the company’s shares.)

Owner_No. of shares (as of 8/8/08)_Value (as of 8/31/08)_Percentage ownership after offering

Norwest Venture Partners_16,538,806_$187,715,448.10_14.2%

Sequoia Capital_11,785,546_$133,765,947.10_10.2%

VENTURE ROUNDS

Date_No. of Investors_Round Amount $M_Valuation $M

11/30/99_2_$5.8_$30.81

4/3/00_3_$11.5_n/a

11/17/00_2_$9.0_n/a

2/10/05_1_$9.64_n/a

5/3/05_1_$5.34_n/a

8/26/05_1_$7.03_n/a

FINANCIALS

12/31/05_12/31/06_12/31/07

Revenue $M: $138.77_$223.97_$362.02

Net Income $M: $10.77_$19.82_$17.83

EPS: $0.11_$0.19_$0.17

Source: Thomson Reuters