Rackable Replaces Prez, CEO

MILPITAS, Calif. -- Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of servers and storage products for large-scale data centers, today announced that Board member, Mark J. Barrenechea, has been appointed President and Chief Executive Officer of the Company, replacing Thomas Barton.

Mr. Barrenechea is a twenty year technology industry veteran and has served in senior management and operating roles at Oracle Corporation (NASDAQ:ORCL) and CA, Inc. (NYSE:CA). He also served the executive management committees of both companies.

At CA, Mr. Barrenechea served as Executive Vice President and Chief Technology Officer where he managed its business units contributing more than $3.5 billion in annual billings and overseeing a staff of 5,000 professionals. He played a key role in CA's $2 billion acquisition strategy. Mr. Barrenechea also served on the executive management committee and reported to CA's CEO John Swainson.

Prior to CA, Mr. Barrenechea served as Senior Vice President of Applications Development at Oracle. Among a variety of duties, he managed the Industry and CRM Applications Divisions at Oracle and helped transition Oracle from "best of breed" applications to Release 11i, its integrated applications suite, while managing a 2,000-person global team. Mr. Barrenechea also served on the executive management and product development committees and reported directly to Oracle's CEO, Larry Ellison.

"I am delighted to join the Rackable Systems team," said Mr. Barrenechea. "The company has an outstanding product portfolio, a world-class customer list, a strong balance sheet and an exciting market opportunity. The company has mapped out a strong strategic plan to capitalize on these market opportunities and now requires a more actionable execution plan to achieve them. I look forward to working with the team and the company's stakeholders to help achieve results and realize the company's potential.""We are very excited to welcome Mark to the management team," said Mr. Ronald D. Verdoorn, Chairman of the Board of Rackable Systems. "His business acumen and successful history in driving top-line growth, defining strategy and scaling companies' processes will be a great asset for Rackable Systems. Mark brings a wealth of industry relationships and experience, along with his energy and passion, that will serve the company well."

The Company has also announced that Thomas Barton has resigned from his position on the Board of Directors of the Company.

Rackable Systems Inc.