RACKABLE SYSTEMS HONORED AS ONE OF NORTH AMERICA’S
FASTEST GROWING COMPANIES

Server and Storage Provider Ranks 12th in Deloitte’s Silicon Valley Fast 50 and 221st in the 2006 Technology Fast 500 Rankings

Milpitas, Calif., October 26, 2006 –Rackable Systems, Inc. (Nasdaq: RACK), a leading provider of servers and storage for large-scale data centers, today announced that the company is ranked 12th on Deloitte's 2006 Silicon Valley Technology Fast 50 and 221st on Deloitte's 2006 Technology Fast 500, which represent regional and national rankings of the fastest growing technology, media, telecommunications and life sciences companies.

"We are honored to be recognized as one of the fastest growing technology companies in Silicon Valley and North America," said Tom Barton, CEO of Rackable Systems. "Our steady growth is reflective of the tremendous work and dedication of our employees, as well as the support of our customers—who have come to expect high performance, high efficiency servers and storage from Rackable Systems for their data centers."

Optimized for applications ranging from Web hosting to High Performance Computing, financial services, oil and gas and entertainment, Rackable Systems' innovative server and storage designs, superior cooling technologies and DC power options enable the company to offer high density deployments while increasing efficiency and reducing power costs. As data centers continue to focus on decreasing energy consumption and implementing "green" technology, Rackable Systems' award-winning solutions enable customers to meet these challenges, even in the most complex IT environments. 

"Deloitte's Silicon Valley Technology Fast 50 companies have shown the strength, vision and tenacity to succeed in today's very competitive technology environment," said Tony Kern, deputy managing principal of Deloitte's Technology, Media & Telecommunications industry practice. "We applaud the successes of Rackable Systems and acknowledge it as one of the very few to accomplish such a fast growth rate over the past five years."

Fast 500 Selection and Qualifying Criteria

The Fast 500 ranks the fastest growing technology, media, telecommunications and life sciences companies in North America.  It is compiled from Deloitte's 16 regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research. Companies are selected based on percentage revenue growth from 2001 to 2005. 

Entrants must own proprietary intellectual property or proprietary technology that contributes to a significant portion of the company's operating revenues or devote a significant proportion of revenues to research and development of technology. Using other companies' technology or intellectual property in a unique way does not qualify.  Base-year operating revenues must be at least $50,000 USD or $75,000 CD, and current-year operating revenues must be at least $5 million USD or CD.  Companies must be in business a minimum of five years, and they must be headquartered within North America.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates.  As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte", "Deloitte & Touche", "Deloitte Touche Tohmatsu" or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.

Deloitte & Touche USA LLP is the US member firm of Deloitte Touche Tohmatsu.  In the US, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP.

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.

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.
Jen Spark
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.