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Press Release

RACKABLE SYSTEMS ANNOUNCES NEW LINE OF SERVERS FEATURING
QUAD-CORE INTEL® XEON® PROCESSOR 5300 SERIES

-- Creator of World’s First Quad-Core Intel Xeon Processor Server Cabinet Publicly Demonstrated
at Intel Developer Forum Now Announces Volume Availability of New Systems --

Milpitas, Calif., November 14, 2006 – Rackable Systems, Inc. (Nasdaq: RACK), a leading provider of servers and storage products for large-scale data centers, today announced availability of servers based on the new Quad-Core Intel® Xeon® processor 5300 series (code named 'Clovertown').  Rackable Systems unveiled the world's first public demonstration of Quad-Core Intel Xeon processor based servers at the Intel Developer Forum on September 26th, and is now offering a full line of high efficiency rack-mount systems based on the new platform.

Using the Quad-Core Intel Xeon processor E5345, the new servers feature performance gains of up to 83% over systems using Dual-Core Intel Xeon processor 5140.1 Designed to consume the lowest possible amount of power, a Rackable Systems C1000 1U rack-mount server with two quad-core 2.33 GHz processors draws less than 290 watts at the system level. 

Available with Rackable Systems' award-winning DC power technology, the new line of servers features customizable 1U, 2U and 3U rack-mount configurations designed to optimize power consumption and reduce the cost of data center operations.  Rackable Systems leverages its hallmark back-to-back mounting technique to achieve density levels of up to 88 rack-mount server nodes per cabinet to achieve unprecedented density levels of 704 processing cores using the new Quad-Core Intel Xeon processor 5300 series.

"Intel's new quad-core processors mark a significant leap in Intel Xeon processor performance, and we're proud to be on the forefront of bringing this new technology to market," said Tom Barton, CEO of Rackable Systems.  "Rackable Systems' new line of quad-core systems gives us the opportunity to further extend our leadership in providing extreme density and outstanding value per watt per square foot for the world's most demanding data centers."

In addition to reduced power consumption and superior performance, servers featuring the new Quad-Core Intel Xeon processor 5300 series benefit from fully buffered dual in-line memory modules (DIMMs), which provide a new memory interface for faster data transmission, including improved signal integrity and error detection.  System expansion capability is provided via PCI Express allowing for traditional options such as Ethernet, Disk Controller (RAID), InfiniBand and Fibre Channel as well as investment protection for future upgrades.

"The Quad-Core Intel Xeon processor 5300 series offers Rackable Systems servers a significant gain in performance within the same thermal envelope as Dual-Core Intel Xeon processors, enabling Rackable Systems to continue its focus on providing ever-greater performance and density for space and power-constrained data centers," said Kirk Skaugen, vice president, Digital Enterprise Group, Intel.  "The new Quad-Core Intel Xeon processor is enabling Rackable Systems to provide amazing new levels of energy-efficient performance to its customers."

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 for easy deployment.  Ideal for applications ranging from Web hosting to High Performance Computing, Rackable Systems' unique designs feature easier serviceability, maximum density and greater thermal efficiency to reduce overall operational expenditures.

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 products 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.

###

1 Based on the SPECint_rate2000 benchmark test performed at Rackable Systems' labs in August and November 2006 on a C1000 server with two Quad-Core Intel Xeon processor E5345 (2.33 GHz), 8GB 667Mhz FBD memory, 1x SATA 250 GB/7.2K rpm HDD and REHL 4 Update 3 as compared to a similarly configured C1000 with two Dual-Core Intel Xeon processor 5140 (2.33 GHz). Actual performance will vary based on configuration, usage and manufacturing variability.

 
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