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Rackable Rejects Shareholder Bids

FREMONT, Calif. -- Rackable Systems, Inc. (NASDAQ: RACK), a leading provider of servers and storage products for large-scale data centers, today announced that the Nominating and Corporate Governance Committee of the Rackable Systems Board of Directors has unanimously determined to reject the proposed nomination to the Rackable Systems Board of two individuals, Richard L. Leza, Jr. of Sierra Madre, Calif. and Steve Montoya of Los Gatos, Calif. As previously announced, Rackable Systems had received the nominations from Mr. Leza, who informed the company that he owns 2,600 shares of Rackable stock.

In making its decision to reject the proposed nominations, the Nominating and Corporate Governance Committee carefully reviewed and evaluated the candidacy of these two individuals and determined that they did not have the qualifications that the Committee believes would be critical to maintaining a strong, independent, diverse and effective Board. Among other things, the Committee determined that the proposed candidates lacked sufficient relevant experience in Rackable Systems industry or with its potential customers, and lacked other qualifications that would make them valuable additions to Rackable Systems’ experienced and highly knowledgeable Board. In addition, the Committee took into consideration that Mr. Leza, during a meeting with the company, did not offer any new ideas or plans for the company.

“Over the past nine months we have recruited two new and highly qualified independent directors, as well as a number of new senior executives, including new CEO Mark J. Barrenechea,” said Gary Griffiths, Chair of Rackable Systems’ Nominating and Corporate Governance Committee.

Rackable Systems Inc.