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James Wheat CFO of Rackable

Replacing Madhu Ranganathan

Rackable Systems, Inc. announced the hiring of James Wheat, who will serve as Chief Financial Officer and as a member of the Executive Management Team. Wheat most recently comes from Lam Research, a global technology company, where he served as Vice President and Corporate Controller. Wheat will report to Mark Barrenechea, our Chief Executive Officer.

"Rackable Systems is well positioned to take advantage of the growing demand for energy-efficient "Green" computing solutions, both in the US and abroad," said Wheat. "The company has a long-standing reputation as an innovator in the data center industry and I am eager to apply my global experience to help expand the success of our Eco-Logical(TM) line of high-performance solutions."

Wheat has a long history of executive and financial leadership within prominent public and private technology organizations. In his previous position at Lam Research, Wheat was responsible for managing compliance with accounting policies, SEC reporting, and the administration of the company's internal audit function for this highly profitable, international semiconductor equipment manufacturing company with more than $2 billion in revenues. Wheat also held senior financial management positions within a number of public technology companies, including the role of acting principal financial officer at Asyst Technology, senior director of finance at Sybase Inc., and vice president and corporate controller at Sunterra Corporation. In addition, Wheat held senior finance positions at Raychem Corporation, Core-Mark International, Spectra-Physics and Honeywell. Wheat earned his MBA at The Wharton School of the University of Pennsylvania and his BBA at the University of Michigan.

Wheat will initially serve Rackable in an interim capacity, while Rackable's current CFO, Madhu Ranganathan, remains in that role through the completion of the company's first quarter of 2008 activities. Upon Ranganathan's departure, James Wheat will become Rackable's CFO.

Rackable Systems, Inc.

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