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Press Release

RACKABLE SYSTEMS UNVEILS HIGH CAPACITY STORAGE SOLUTIONS

-- Rack-Mount Storage Servers Feature Superior Value, Capacity and Performance
for Bulk Data Storage --

MILPITAS, Calif., June 19, 2006 – Rackable Systems, Inc. (Nasdaq: RACK), a leading provider of servers and storage products for large-scale data centers, today announced additions to its family of rack-mount storage servers designed to achieve storage capacity as high as 273 Terabytes per cabinet. With prices as low as USD 2.00 per Gigabyte, Rackable Systems' rack-mount storage servers provide a scalable, cost effective alternative for data centers seeking optimal price per capacity per square foot for bulk data storage.

The new Rackable Systems S6026 storage server, which features 26 hot-swappable Serial ATA drives per 6U, can be mounted back-to-back to achieve 273 Terabytes of storage with the processing capability of 56 cores in one cabinet. Leveraging the company's signature back-to-back mounting and DC Power technology, the S6026 offers higher density per square foot at a lower total cost, while reducing the overall number of systems required for administration in a given footprint.

"Our commodity-based storage servers are an ideal choice for data centers seeking lower-cost, high capacity storage alternatives," said Tom Barton, CEO of Rackable Systems. "Too many companies today are overpaying for bulk storage, and Rackable Systems' solutions provide an alternative for customers looking to consolidate and scale their storage infrastructure."

Ideal for bulk data storage such as photographs, email and unprocessed seismic data, Rackable Systems' bulk-tier storage solutions include a full range of 2U, 3U and 6U form factors with drive counts ranging from six to 26 drives per system. With options including redundant power and cooling, hot-swappable drives, battery back-up and DC Power capabilities, these bulk-tier storage systems feature high reliability with easiest serviceability. Leveraging DC Power further increases reliability while achieving savings of up to 30% on power expenses, improving overall operational efficiency and total cost of ownership in the data center.

Based on an open architecture approach using industry-standard components, Rackable Systems storage servers are available in both half-depth and standard-depth form factors for maximum flexibility and scalability. Rackable Systems' hallmark back-to-back mounting achieves highest density and thermal efficiency, while enterprise-class standard-depth designs feature added redundancy and expansion card flexibility. Today's fastest single- and dual-core 64-bit processors from AMD and Intel are available across Rackable Systems' full range of bulk storage servers.

The S6026 starts at a list price of USD 26,000.00 for a configuration using 500 Gigabyte drives and will become available in Q3 2006.

About Rackable Systems
Rackable Systems, Inc. (Nasdaq: RACK) is a provider of servers and storage products for scale out data center deployments. The company's servers are designed to provide benefits in the areas of density, thermal efficiency, serviceability, power distribution and remote management. Founded in 1999 and based in Milpitas, California, Rackable Systems serves Internet, semiconductor design, enterprise software, federal government, entertainment, financial services, oil and gas exploration and biotechnology customers worldwide.

To learn more about Rackable Systems visit www.rackable.com.

Contact Information:

Rackable Systems
Colette LaForce
408-240-8324
claforce@rackable.com
Schwartz Communications, Inc.
Dara Sklar
415-512-0770
rackablesystems@schwartz-pr.com
Rackable Systems is a registered trademark of Rackable Systems®, Inc. All other trademarks are property of their respective holders.

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