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Press Release

RACKABLE SYSTEMS EXPANDS SERVER OFFERINGS WITH NEXT-GENERATION AMD OPTERON™ PROCESSORS

-- High Density Server and Storage Provider Unveils New AMD Opteron Processor-Based Solutions --

MILPITAS, Calif., August 15, 2006 – Rackable Systems, Inc. (Nasdaq: RACK), a provider of servers and storage products for large-scale data centers, today announced the adoption of the Next-Generation AMD Opteron™ processors, also known as Socket F (1207).  Available across Rackable Systems" broad range of thermally efficient rack-mount and hybrid blade server designs, the newest evolution in AMD64 processor technology enables Rackable Systems to expand its range of server and storage solutions designed to achieve outstanding value per watt per square foot for the data center.

"Next-Generation AMD Opteron processors pave the way for greater efficiency for dual- and quad-core computing," said Giovanni Coglitore, chief technology officer at Rackable Systems. "Our customers have come to expect high performance and low power consumption from Rackable Systems" solutions—and the next evolution of AMD Opteron enables us to provide even greater choice and flexibility."

Designed using industry-standard components with an open architecture approach, Rackable Systems" broad range of servers and storage products are delivered fully racked and cabled in cabinet sizes holding up to 88 systems with up to 352 processing cores. Ideal for applications ranging from Web hosting to High Performance Computing, financial services, oil and gas and entertainment, Rackable Systems" unique designs feature easier serviceability, maximum density and greater thermal efficiency to reduce overall operational expenditures.

"Rackable Systems has consistently developed innovative, power-efficient servers to address mounting heat dissipation and cooling concerns in the data center," said Randy Allen, corporate vice president, Server and Workstation Division, AMD (NYSE: AMD).  "Now with the Next-Generation AMD Opteron processors with leading-edge performance-per-watt and virtualization capabilities, Rackable Systems can offer its customers new options on which to run their mission-critical applications while helping to keep electricity costs in check."

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, call 408-240-8300, or write to info@rackable.com.

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