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Press Release

RACKABLE SYSTEMS NAMES TOM GALLIVAN
VICE PRESIDENT OF WORLDWIDE SALES

-- Seasoned Executive Leverages Extensive Knowledge of Hardware and Software Industries
to Expand Global Sales Initiatives --

MILPITAS, CALIF. - SEPT. 27, 2004 - Rackable Systems, Inc., a leading provider of compute and storage servers for scale out data center deployments, today announced the addition of Tom Gallivan as vice president of worldwide sales. Mr. Gallivan brings more than 20 years of direct and channel sales experience to the company, and will be responsible for driving worldwide sales of all Rackable Systems compute and storage server products and services.

"Tom brings exceptional credentials and leadership experience to Rackable Systems," said Tom Barton, president and CEO of Rackable Systems. "His industry expertise and track record of developing and acquiring new and existing business on both domestic and international levels make Tom an outstanding addition to the company."

Mr. Gallivan joins Rackable Systems from Sun Microsystems, where he served as director of sales, focusing on Fortune 1000 strategic partners and channels. Prior to Sun Microsystems, Mr. Gallivan served as general manager for MAXSTRAT Corporation, a RAID storage systems supplier. He also held the role of Western region sales director at Seagate Technology, a worldwide leader in the hard disc drive space.

About Rackable Systems
Rackable Systems, Inc. is a leading provider of rack-mount compute and storage servers for scale out data center deployments. The company's patented server designs feature key competitive advantages in the areas of density, thermal efficiency, serviceability, power distribution and remote management. Driven by a fierce commitment to superior innovation and customer service, Rackable Systems is one of North America's top server vendors. Founded in 1999 and based in Milpitas, California, Rackable Systems customers include Lawrence Livermore National Laboratory, nVidia, Tellme Networks, Toshiba America Electronic Components, U.C.S.C. Human Genome Project, Webex and Yahoo!.

To learn more about Rackable Systems, visit www.rackable.com, call 408-240-8300, or email info@rackable.com.

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