Rackable Systems to Include IBM Blades in "ICE Cube" Modular Data Center Offering

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ARMONK, NY and FREMONT, CA - 28 Jul 2008: IBM (NYSE: IBM) and Rackable Systems, Inc. (NASDAQ: RACK) today entered into an agreement allowing Rackable Systems to offer IBM's high-performance BladeCenter servers inside its ICE Cube(TM) modular data centers. The ICE Cube will be outfitted with IBM's most rugged, high performance BladeCenter systems for harsh environments and demanding conditions.

As part of this agreement, IBM BladeCenter will be the only blade server platform available for custom ICE Cube implementations globally. IBM BladeCenter integrates servers, networks, storage, and business applications in a single, highly efficient system and is thus ideal for packing large amounts of computing power into portable data center environments.

The ICE Cube modular data center solution will be outfitted with IBM BladeCenter T or HT systems, which meet Network Equipment-Building System (NEBS) Level 3/ European Telecommunications Standards Institute (ETSI) requirements, so are ideal for use in telecommunications environments and carrier facilities (1). The blades are designed to withstand extreme environments where modular data centers are often deployed, such as remote construction sites or oil fields.

"Rackable Systems sees this strategic relationship as a further opportunity to provide our customers with unique, built-to-order solutions," said Mark J. Barrenechea, president and CEO of Rackable Systems. "Including IBM BladeCenter in ICE Cube enables Rackable to expand its market reach to new customers, new fault tolerant workloads and new markets seeking products that meet NEBS requirements."

Rackable is also joining Blade.org, the industry consortium driving open innovation in blade-based solutions, and plans to contribute to development and innovation around IBM's BladeCenter platform. IBM and Intel took a unique approach in the blade server industry in 2004 by opening the architecture and specifications of the IBM BladeCenter system. This move enabled a growing community of over 500 technology companies like Rackable to download the specifications for free, develop products for the BladeCenter ecosystem and shape the direction of the blade server platform.

"IBM continues to forge agreements to expand the marketplace for IBM BladeCenter. Today's announcement with Rackable Systems creates yet another opportunity for customers to select BladeCenter and highlights the industry leading density and energy efficiency BladeCenter provides," said Alex Yost, vice president of IBM BladeCenter. "Rackable Systems' selection of IBM BladeCenter is further evidence of the primacy of BladeCenter's design, strong customer demand for the product and IBM's commitment to foster an open ecosystem around it."

Rackable Systems' new ICE Cube with BladeCenter solution will enable users to realize the benefits associated with ICE Cube in conjunction with those offered by IBM's BladeCenter product line. The ICE Cube is available in 20- or 40-foot container sizes. BladeCenter-specific configurations of ICE Cube will allow Rackable Systems' enterprise customers to reach densities up to 1,344 dual socket, Quad core Intel® Xeon® blades, or 672 quad socket, dual core AMD Opteron blades.

ICE Cube with IBM BladeCenter T and HT is available immediately and offered worldwide by Rackable Systems and its channel partners. For more information on Rackable Systems' ICE Cube with IBM BladeCenter, please visit: www.rackable.com/icecube.

About Rackable Systems, Inc.
Rackable Systems, Inc. (NASDAQ: RACK) is a leading provider of Eco-Logical™ servers and storage 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, data center mobility and remote management. Founded in 1999 and based in Fremont, California, Rackable Systems is a founding member of The Green Grid and serves Internet, enterprise software, federal government, entertainment, financial services, oil and gas exploration and HPC customers worldwide.

To learn more about Rackable Systems visit www.rackable.com.

About IBM BladeCenter
IBM has the broadest portfolio of blade offerings in the industry, including five blade enclosures, five compatible server blades and five I/O fabrics with a common architecture that allows clients to mix and match offerings. IBM has also taken a unique approach in the industry by opening up the IBM BladeCenter hardware architecture, which has created market and revenue opportunities for hundreds of companies selling peripherals like network and storage cards, switches and software. Since opening the BladeCenter specifications in 2004, 500 companies have downloaded the specifications for free. For more information about IBM BladeCenter, please visit: www.ibm.com/bladecenter.

(1.) For additional details, please refer to Underwriter's Laboratory (UL) certified NEBS Level 3/ETSI test report.

All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

IBM and IBM BladeCenter are trademarks of IBM Corporation in the United States and/or other countries. Rackable Systems and other marks used herein are registered trademarks of Rackable Systems®, Inc. All other trademarks are property of their respective holders.

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