Rackspace Managed Hosting Names Chief Financial Officer

SAN ANTONIO--(BUSINESS WIRE)--Jan. 12, 2004--Rackspace Managed Hosting, the fastest-growing managed hosting provider, today announced that it has named Gary Kofnovec as its chief financial officer. Kofnovec has more than 25 years of senior financial management experience including leadership in initial public offerings and negotiating large credit facilities. In his new role at Rackspace, Kofnovec will be responsible for the company's fiscal function and performance, treasury management, capital structure and investor relations.

"Gary's extensive financial management experience with public, private and fast-growing companies lends itself well to Rackspace as we position ourselves for another growth spurt in 2004," said Graham Weston, chief executive officer and co-chairman, Rackspace Managed Hosting. "Gary will bring us the additional leadership needed to drive expansion and increase market share."

Kofnovec joins Rackspace from Norwood Promotional Products, the world's largest manufacturer of promotional products, where he was chief financial officer of the $400 million company and led efforts to significantly increase profitability and improve the capital structure. Previous positions include chief financial officer of Xetel, a $200 million publicly held electronics manufacturer, and partner with the international accounting firm Grant Thornton.

"Rackspace is the leader in the web hosting industry, achieving profitability and solid financial health. My experience in financing growing companies and building systems and controls will help Rackspace's continued growth into a much larger company," said Kofnovec. "I look forward to working with the management team in delivering Fanatical Support(TM) and significantly growing the customer base."

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 complexities, including burstable connectivity, 100 percent availability 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 in the InfoWorld 100 for technology innovation. For more information, visit www.rackspace.com, or call 800-961-2888.