San Antonio, Texas - (The Hosting News) - June 25, 2007 - The founders and senior executives of managed web hosting services company, Rackspace, have been recognized on the Ernst and Young Entrepreneur of the Year honors list. Lanham Napier, President and CEO, Graham Weston, Executive Chairman, and Co-Founders, Patrick Condon and Dirk Elmendorf, were named for success in innovation, financial performance, and personal commitment to Rackspace and its employees.

Don Calvin, Partner and Program Director of the Ernst and Young Entrepreneur Of The Year program in Austin remarked, ''For 21 years, Ernst and Young has recognized outstanding entrepreneurship through our Entrepreneur Of The Year program. 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.''

According to the company, Rackspace was founded in 1998 when Mr. Weston invested seed capital in an idea presented by three Trinity University students, including Messrs. 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. Mr. 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.

Graham Weston, Executive Chairman at Rackspace Managed Hosting remarked, ''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.''

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. Messrs. 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 and Young Entrepreneur Of The Year Hall of Fame and become eligible for the national Entrepreneur Of The Year award in November.

The Entrepreneur Of The Year awards program was created and is produced by professional services firm Ernst and Young LLP. As the first award of its kind, the Ernst and 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.

Ernst and 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 and Young and its approach to a variety of business issues can be found at www.ey.com/perspectives. Ernst and Young refers to the global organization of member firms of Ernst and Young Global Limited, a U.K. company limited by guarantee, each of which is a separate legal entity.

A recognized global managed hosting firm, Rackspace Managed Hosting is a service organization delivering enterprise-level web infrastructure and managed services to businesses of all sizes. Serving more than 10,000 customers across seven 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. Founded in 1998, Rackspace has grown more than 50 percent a year since the company's inception.

To learn more about Rackspace Managed Hosting, please visit: www.rackspace.com.