Rackable Systems, Inc. intends to continue to oppose the Board nominations and stockholder proposal outlined in the proxy materials filed today by Richard Leza Jr. with respect to the company's 2008 Annual Meeting of Stockholders.

As previously announced, the Nominating and Corporate Governance Committee carefully considered Leza's Director nominations and determined that the two candidates do not have the qualifications that the Committee believes would be vital to maintaining a strong, independent, diverse and effective Board. Among other factors, the Committee determined that the proposed candidates lack relevant experience in Rackable Systems' industry or with its potential customers, and lacked other qualifications that would make them valuable additions to Rackable Systems' experienced Board.

Furthermore, the Board previously reviewed the advisory stockholder proposal set forth by Mr. Leza. The Board reiterated that while it recognizes the value and emerging trend of boards soliciting and considering stockholders' views on executive compensation and disclosure, it continues to believe that there are more effective means for stockholders to communicate their views directly to the Board, and that this proposal is not the best approach at this time for the company, particularly in light of the highly competitive environment in which small and mid-sized technology firms operate.

"Consistent with our earlier conclusions, the Board continues to believe that Mr. Leza's nominations as well as his proposal would not be in the best interests of Rackable Systems and its stockholders," said Mark J. Barrenechea, President and Chief Executive Officer of Rackable Systems. "We recently added two highly qualified independent Board members, and both Rackable Systems' Board and management team are committed to building the company, maintaining the highest standards of corporate governance, and maximizing value for all of our stockholders."

Rackable Systems, Inc.

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