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Press Release

TERRASCALE TECHNOLOGIES RECEIVES GRIDTODAY'S
EDITORS' CHOICE AWARD

-- Rackable Systems' Terrascale Storage Solutions Recognized for Best Price/Performance Storage Solution for a Grid Implementation --

MILPITAS, Calif., September 12, 2006 – Rackable Systems, Inc. (Nasdaq: RACK), a leading provider of servers and storage products for large-scale data centers, today announced that its recently acquired company, Terrascale Technologies, Inc., is being honored by GRIDtoday for its next generation storage solutions for high performance enterprise class cluster and grid applications. GRIDtoday's "Editors' Choice: Best Price/Performance Storage Solution for a Grid Implementation" award is being presented at the GridWorld™ conference in Washington, D.C.

The GRIDtoday Readers' and Editors' Choice Awards are determined through a survey of thousands of GRIDtoday readers, and will be a permanent annual feature of the publication. GRIDtoday has designated two categories of awards: (1) Readers' Choice, where winners have been determined by a random poll of GRIDtoday readers, and (2) Editors' Choice, where winners have been determined by votes of an advisory group of recognized luminaries, contributors and editors influential in Grid and Service-Oriented IT.

"We are very excited about this opportunity to articulate the views and opinions of our readers to recognize the accomplishments that are being made in advancing the development and adoption of Grid, Service-Oriented IT and virtualization," said Tom Tabor, publisher of GRIDtoday. "These industry recognition awards send a strong message to the recipients that the many global contributors working in or watching this important computing segment recognize their work, and consider their efforts meritorious. Our congratulations go out to all the winners."

Rackable Systems recently announced the completion of its acquisition of the award-winning Terrascale Technologies, Inc., a provider of a clustered storage solution enabling high performance I/O connectivity between servers and commodity-based storage subsystems. Terrascale's clustered file system solutions eliminate the performance bottleneck inherent with legacy Network Attached Storage (NAS) architectures by delivering a single file system solution that scales nearly linearly in both capacity and performance.  Terrascale's technology is well suited to large Linux clusters found in Internet and High Performance Computing (HPC) environments, enabling customers to realize improved manageability, storage utilization and availability in addition to up to tens of gigabytes per second of I/O throughput.

"This is an exciting award for us, and recognizes the level of innovation we have achieved with the Terrascale technology," said Gautham Sastri, executive vice president of Storage Solutions at Rackable Systems. "Terrascale has already achieved demonstrable success in data center environments that rely on high performance server and storage capabilities, and the combination of Terrascale's clustered storage solutions with Rackable Systems' award-winning servers and storage creates a compelling solution for today's grid computing environments."

More information on these awards can be found at the GRIDtoday website (www.GRIDtoday.com).

About GRIDtoday

Published weekly, GRIDtoday (www.GRIDtoday.com) is the world's leading source of news, information and events covering Grid and Service-Oriented IT. In addition to the weekly publication, GRIDtoday offers daily news alerts capturing the top and most relevant stories from around the globe as well as event-specific coverage from industry cornerstone events. Subscription information for GRIDtoday can be found at: http://www.GRIDtoday.com/info/701.html.

About Rackable Systems

Rackable Systems, Inc. (Nasdaq: RACK) is a provider of servers and storage products for large-scale 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.

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.

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