ARMONK, NY and FREMONT, CA–(EMWNews – July 28, 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™ 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.