Rackspace Listed in Visionary Quadrant in Web Hosting Magic Quadrant [28th May 2003]

SAN ANTONIO, May 28, 2003 (BUSINESS WIRE) -- Rackspace Managed Hosting, the leading managed hosting provider, today announced its third consecutive year in Gartner Inc.'s annual North American Web Hosting Magic Quadrant(a) and was placed in the "Visionary" category.

Gartner defines Visionaries as vendors who have demonstrated the ability to leverage delivery-based technologies, create innovative products and implement flexible pricing plans.

"This year's Magic Quadrant reflects the dramatic reshuffling of the hosting landscape as a result of bankruptcies, financial turmoil and revenue loss experienced by many industry leaders. Despite this, Rackspace has moved over into the visionary category and continues to grow," said Graham Weston, CEO of Rackspace Managed Hosting. "Rackspace's placement in the Visionary category of the 2003 Magic Quadrant is a testament to our ability to serve the market with Fanatical Support(tm) and the additional managed services needed to run a complex Web operation."

Weston added that Rackspace believes it has gained positive ground partly due to the great success of the company's Intensive Hosting division that provides fully managed hosting for business-critical Web applications built exclusively on the Microsoft platform. Rackspace launched Intensive Hosting in June 2002 as a direct competitor to Digex.

The Gartner Magic Quadrant evaluates service providers in the enterprise Web hosting market based on an array of quantitative and qualitative criteria that evaluate the vendor's Ability to Execute and its Completeness of Vision. These scores are then plotted on a graph illustrating their placement in the Magic Quadrant. Information on each company is gathered through vendor interviews and questionnaires, ongoing client inquiries, reference checks and input from Gartner analysts.

About Intensive Hosting

Intensive Hosting is a division of Rackspace Managed Hosting that provides fully managed hosting for business-critical Web applications built exclusively on the Microsoft platform. For more information on Intensive Hosting visit www.intensive.com or call 888/480-6840.

About Rackspace Managed Hosting

Rackspace Managed Hosting(tm) is a leading provider of managed Web hosting solutions. Founded in 1998, Rackspace offers a wide range of managed services for hosting platforms of all sizes and complexity, including burstable connectivity, 99.999% uptime SLA, load balancing, security and patching, advanced storage solutions and disaster recovery. Rackspace has received numerous industry awards for its brand of customer service, known as Fanatical Support(tm), and was named to the Red Herring 100 in 2002. For more information, visit www.rackspace.com, or call 800/961-2888.

(a) The Magic Quadrant is copyrighted May 2003 by Gartner Inc. and is reused with permission. Gartner's permission to quote its Magic Quadrant research should not be deemed to be an endorsement of any company or product depicted in the
quadrant. The Magic Quadrant is Gartner's opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of
vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the Leaders segment. In some situations, firms in the Visionary, Challenger, or Niche
Player segments may be the right match for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources and the reader
should not rely solely on the Magic Quadrant for decision-making. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

SOURCE: www.rackspace.com

Rackspace Managed Hosting, San Antonio
Annalie Drusch, 210/892-4000, ext. 1234
adrusch@rackspace.com