SAN ANTONIO----Rackspace® Managed Hosting, a leading global provider of managed hosting services, today announced the company’s founders and top executive were named Entrepreneur of the Year® by Ernst & Young LLP. Lanham Napier, president and CEO; Graham Weston, executive chairman; Patrick Condon, co-founder; and Dirk Elmendorf, co-founder, were honored by the professional services firm for their demonstration of excellence and extraordinary success in innovation, financial performance, and personal commitment to Rackspace and its employees.

“For 21 years, Ernst & Young has recognized outstanding entrepreneurship through our Entrepreneur Of The Year program,” said Don Calvin, Partner and Program Director of the Ernst & Young Entrepreneur Of The Year program in Austin. “This year’s award recipients are truly an inspiration to all. We salute them for their drive, determination and hard work – and congratulate them on their success.”

Rackspace was founded in 1998 when Weston invested seed capital in an idea presented by three Trinity University students, including Elmendorf and Condon, with a deep interest in and understanding of technology. Their concept of web hosting was ahead of the curve, providing a lucrative business that has grown in revenue by approximately 50 percent each year. Napier joined the team in 2000 as CFO, steering the company through the technology downturn with a steady hand and long-term financial outlook that proved to be the point of difference between Rackspace and its competition. Through a common goal of building one of the world’s greatest service companies, the four entrepreneurs have generated a growing demand for web hosting backed by Fanatical Support™, the renowned customer service experience at Rackspace.

“Word of mouth has driven our growth to 1,600 Rackers in eight years. Our customers love the service focus — our Fanatical Support — which would not be possible without the dedication our Rackers bring everyday,” said Graham Weston, executive chairman, Rackspace Managed Hosting.

The Entrepreneur Of The Year program was created 21 years ago to celebrate great entrepreneurs and heighten awareness of the economic impact of entrepreneurial ventures. Napier, Weston, Condon and Elmendorf were selected by an independent panel of judges comprised of local community and business leaders. The judging criteria includes a thorough assessment of recent financial performance, strategic direction and product or service innovation, company leadership including personal integrity, values and key employee initiatives, and community involvement.

The Rackspace honorees will be inducted into the Ernst & Young Entrepreneur Of The Year Hall of Fame and become eligible for the national Entrepreneur Of The Year award in November.

About Rackspace Managed Hosting

A recognized leader in the global managed hosting market, Rackspace Managed Hosting delivers enterprise-level managed services to businesses of all sizes. Serving more than 12,000 customers in eight data centers worldwide, Rackspace integrates the industry’s best technologies for each customer need and delivers it as a service via the company’s award-winning Fanatical Support™. Through trusted relationships, Rackspace serves as an extension of its customers’ IT departments, enabling them to focus on their core business. Since its inception in 1998, Rackspace has grown more than 50 percent a year. For more information, please visit www.rackspace.com, or call 800-961-2888.

About the Ernst & Young Entrepreneur Of The Year Awards

The Entrepreneur Of The Year® awards program was created and is produced by professional services firm Ernst & Young LLP. As the first award of its kind, the Ernst & Young Entrepreneur Of The Year® Award recognizes outstanding entrepreneurs who are building and leading dynamic and growing businesses. The program, which celebrated its 20th anniversary in 2006, honors entrepreneurs through regional, national and global award programs in over 125 cities and 40 countries.

About Ernst & Young

Ernst & Young, a global leader in professional services, is committed to enhancing the public’s trust in professional services firms and in the quality of financial reporting. Its 114,000 people in 140 countries pursue the highest levels of integrity, quality, and professionalism in providing a range of sophisticated services centered on our core competencies of auditing, accounting, tax, and transactions. Further information about Ernst & Young and its approach to a variety of business issues can be found at www.ey.com/perspectives. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, a U.K. company limited by guarantee, each of which is a separate legal entity. Ernst & Young Global Limited does not provide services to clients. Ernst & Young LLP is a U.S. client-serving member firm of Ernst & Young Global Limited.