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Rackable Systems Prevails In Patent Suit Against King Star Computer

- Consent Judgment Provides That Rackable's '366 Patent Is Valid, Enforceable and Infringed -

SAN JOSE, CALIF., August 19, 2003 — Rackable Systems, Inc., (http://www.rackable.com) a leading provider of large scale data center deployment solutions, today announced that it had filed with the United States District Court of California, (Northern District), in case number C 03-3346 PJH, a consent judgment successfully resolving a patent infringement law suit that Rackable Systems filed against King Star Computer, Inc. on July 18, 2003. Rackable Systems' complaint outlined allegations of infringement of the company's U.S. Patent No. 6,496,366 B1, pertaining to King Star's servers, server chassis and racks. According to the consent judgment, King Star is permanently enjoined from making, using, importing, selling or offering for sale within the United States its InteliRack42rack, chassis or server, or any other "back-to-back" rack, chassis or server utilizing a substantially similar design to its infringing InteliRack42 products.

Rackable Systems' innovative high-density compute server and storage products are protected by U.S. Patent No. 6,496,366 B1, issued December 17, 2002 and entitled, "High density computer equipment storage systems." The patent includes claims covering the manner in which computers are set-up in a rack in order to save space, increase density and resolve and deal with cooling issues associated with servers. High-density designs from Rackable Systems allow servers to be mounted "back-to-back" in a rack, a feature that greatly enhances both density and thermal management.

Rackable Systems' designs double or quadruple the density of the servers in a rack and provide superior thermal management, producing a dramatic savings in total overall data center costs. In comparison to similar Tier 1 vendors' solutions, Rackable Systems is able to reduce Total Cost of Ownership (TCO) through lower acquisition costs, shortened deployment times, and lower ongoing service and maintenance expenses.

"Our inventions address several challenging issues present in data center environments, including density, power efficiency and thermal management," said Giovanni Coglitore, Rackable Systems CTO and Co-Founder. "Rackable Systems' approaches not only simplify the layout of data centers, which for years were bound to the cold-aisle/hot-aisle design, but also provide total solutions that will enable large system deployments in the future to be even more efficient."

Rackable Systems' servers are housed in a "back-to-back" fashion in a specially designed chassis and cabinet. This design simplifies access to the individual servers by having ports, connectors, and indicators on the front side of the server to improve serviceability. By utilizing an open architecture approach and industry-standard components such as motherboards, hard-drives, and CPUs, Rackable Systems is able to offer highly competitive pricing across its product offering.

Rackable Systems offers a complete line of compute server and storage products including its C1000, C2000, C2000V and C2004 Compute Server Series (http://www.rackable.com/products/compute.htm), and the S3009, S3012 and S3116 Storage Server Series (http://www.rackable.com/products/storage.htm), each designed to cost-effectively deliver the highest levels of quality and performance. Rackable Systems' server products have key competitive advantages in the areas of CPU density, thermal management, power consumption and serviceability.

ABOUT RACKABLE SYSTEMS
Founded in 1999 and headquartered in San Jose, California, Rackable Systems leads the industry in large-scale data center deployment solutions. Through innovative design, patented technology and commitment to customer service, the company offers a broad line of server products that can be rapidly deployed in data centers and other demanding IT environments. Serving leading-edge technology companies, universities and research & development organizations, Rackable Systems' customers include Biogen, Cold Springs Harbor Laboratories, Deutsche Bank, Electronic Arts, Lawrence Livermore Labs, nVidia, SLAC, Sony America, Tellme, Webex and Yahoo!.

To learn more about Rackable Systems, visit (http://www.rackable.com), call 408-240-8300 or write to info@rackable.com.

Rackable Systems is a registered trademark of Rackable Systems®, Inc. All other trademarks are property of their respective holders.