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RACKABLE SYSTEMS EXPANDS SERVER OFFERINGS WITH NEW DUAL-CORE INTEL® XEON® PROCESSOR

-- High Density Server Designs to Feature New Intel Dual-Core Technology --

MILPITAS, CALIF. – October 10, 2005 – Rackable Systems, Inc. (Nasdaq: RACK), a leading provider of servers and storage products for large-scale data centers, today announced availability within the next 60 days of servers based on the new Dual-Core Intel® Xeon® processor 2.80 GHz. Integrated across Rackable Systems' broad, award-winning line of server products, the new processor will enable improved performance over single-core servers.

"Our ability to offer solutions based on the new Dual-Core Intel Xeon processor line gives our customers even more options to satisfy their highly intensive computing needs," said Josh Goldenhar, senior director of product marketing at Rackable Systems. "Our broad range of server designs is enhanced by the performance and efficiency achieved with Intel's 64-bit computing solutions."

Designed using industry-standard components with an open architecture approach, Rackable Systems products support the full range of Intel Xeon processors. The new Dual-Core Intel Xeon processor 2.80 GHz incorporates the same Intel chipsets used in single-core server processors, enabling an easy migration to multi-core. Dual-core processing achieves even greater performance when integrated with Rackable Systems' highly dense, thermally efficient server designs—providing increased levels of compute power in the same available footprint.

"Intel is pleased to be working with Rackable Systems to further enhance their 64-bit computing platforms, now including Dual-Core Intel Xeon processors," said Jerry Braun, Product Marketing Manager at Intel Corporation. "Together we are committed to provide customers with the necessary performance and choice to help reduce overall total cost of ownership for today's data centers."

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

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