Rackspace’s Enhanced Pay and Leave Practices Featured by FORTUNE Magazine Editors on “100 Best Companies to Work For”

  Rackspace’s Enhanced Pay and Leave Practices Featured by FORTUNE Magazine
  Editors on “100 Best Companies to Work For” List

 Rackspace Climbs to #34, Making Prestigious FORTUNE List in Five of Last Six

Business Wire

SAN ANTONIO -- January 17, 2013

Rackspace® Hosting, (NYSE:RAX), the open cloud company, today announced it has
climbed to 34^th on FORTUNE magazine’s annual list of the “100 Best Companies
to Work For.” FORTUNE has named Rackspace as one of America’s top workplaces
in five of the last six years. The full list and related stories will appear
in the February 4 issue of FORTUNE, and today at fortune.com/bestcompanies.

“We are honored to once again be included among the great companies on the
FORTUNE list, and know that our Fanatical Support and employee engagement got
us here,” said Lanham Napier, CEO of Rackspace. “Our employees — we call them
Rackers — make our company great. I want to thank them for their work to
preserve and improve our unique company culture, even as we grow.”

Rackspace has invested heavily in the company’s unique culture, in training
and in creating fun and dynamic work environments for Rackers. Rackspace’s
enhanced pay and leave practices were featured by Fortune editors who noted
Rackspace’s policy of offering stock options to all employees upon being
hired. In 2012, Rackspace also implemented a favorable Employee Stock Purchase
Program and increased the number of paid days off, including three paid days
for volunteer work outside of the office.

Underpinning Rackspace’s culture is a complex business process that the
company has refined over the past decade. That process involves everything
from the way Rackspace recruits and extensively interviews prospective
Rackers, to the way it tests for and develops a Racker’s specific strengths,
to the way it empowers Rackers to spend time and money on customer issues, to
the way it measures employee and customer engagement down to the support-team
level, to the way it celebrates and rewards success.

The 2012 introduction of Rackspace’s open cloud marked the first time any
company deployed a large-scale open source public cloud powered by OpenStack.
Rackspace customers can now select from private or public cloud, dedicated,
virtualized or hybrid offerings and have the flexibility to deploy their
private cloud in their own datacenter, a Rackspace data center or another data
center of their choice.

The open cloud platform joined over 75 products and services launches that San
Antonio-based Rackspace released in 2012, reflecting a commitment to invest in

Rackspace intends to maintain its positive momentum heading into 2013 by
continuing to expand the scope of its OpenStack-based solutions portfolio. In
the near future, Rackspace plans to continue to enhance its portfolio with
solutions for high growth opportunities, including Big Data, high scale
applications, software defined network enhancements and enterprise needs,
among others.

Rackspace continued to expand its global workforce in 2012.Using
first-quarter figures — the latest that had been made public when the FORTUNE
survey was taken — Rackspace had expanded employment by24.1percent from the
same quarter in 2011, to more than4,335employees.Rackspace currently has
more than230positions open in San Antonio, Austin, San Francisco, Blacksburg
and a half-dozen other U.S. cities, as well as in Europe, Australia, and Asia.
Those openings, in departments ranging from software development to tech
support and sales, can be seen at http://www.rackertalent.com/.

FORTUNE Survey Methodology

To pick the 100 Best Companies to Work For, FORTUNE partners with the Great
Place to Work Institute to conduct the most extensive employee survey in
corporate America. Two-thirds of a company's score is based on the results of
the institute's Trust Index survey, which is sent to a random sample of
employees from each company. The survey asks questions related to their
attitudes about management's credibility, job satisfaction, and camaraderie.
The other third of the scoring is based on the company's responses to the
institute's Culture Audit, which includes detailed questions about pay and
benefit programs and a series of open-ended questions about hiring practices,
internal communications, training, recognition programs and diversity efforts.

About Rackspace Hosting

Rackspace® Hosting (NYSE:RAX) is the open cloud company, delivering open
technologies and powering more than 197,000 customers worldwide. Rackspace
provides its renowned Fanatical Support® across a broad portfolio of IT
products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated
Hosting. Rackspace has been recognized by Bloomberg BusinessWeek as a Top 100
Performing Technology Company, is featured on Fortune’s list of 100 Best
Companies to Work For and is included on the Dow Jones Sustainability Index.
Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011
Magic Quadrant for Managed Hosting.” Rackspace is headquartered in San Antonio
with offices and data centers around the world. For more information,

Forward-Looking Statements

This press release contains forward-looking statements that involve risks,
uncertainties and assumptions. If such risks or uncertainties materialize or
such assumptions prove incorrect, the results of Rackspace Hosting could
differ materially from those expressed or implied by such forward-looking
statements and assumptions. All statements other than statements of historical
fact are statements that could be deemed forward-looking statements, including
any statements about historical results or third party data that may suggest
trends for our business or industry; any statements of the plans, strategies,
and objectives of Rackspace for future operations or growth; any statements of
expectation or belief regarding future events, and any statements of
assumptions underlying any of the items mentioned. Risks, uncertainties and
assumptions include the possibility that expected growth or success may not
materialize because of Rackspace's failure to sustain a culture that inspires
employees to provide Fanatical Support, failure to execute on its operational
plans, rapid technological changes that adversely affect the demand for
Rackspace products and services, shifts in customer demand, customers' and
potential customers' acceptance of Rackspace products and services, and other
risks that are described in Rackspace Hosting's Form 10-Q for the quarter
ended September 30, 2012, filed with the SEC on November 7, 2012. Except as
required by law, Rackspace Hosting assumes no obligation to update these
forward-looking statements publicly, or to update the reasons actual results
could differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future.

^1 Survey methodology information provided by FORTUNE at


Rackspace Hosting
Natalie Silva, 210-501-7834
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