Rackspace Hosting (RAX)

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) requires our officers and directors and persons who beneficially own more than 10% of the Company’s common stock (collectively, “Reporting Persons”) to file reports of beneficial ownership and changes in beneficial ownership with the SEC. Reporting Persons are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms they file. Based solely on our review of such reports received or written representations from certain Reporting Persons during fiscal year ended December 31, 2008, we believe that all Reporting Persons complied with all applicable reporting requirements, except that Messrs. Moe, Hamilton and Bishkin each filed a late Form 4 on November 14, 2008 for the purpose of reporting the receipt of stock compensation earned as non-employee directors for the third quarter of 2008. In addition, Norwest Venture Partners VIII, L.P., the assignee of George Still’s non-employee director compensation filed a late Form 4 on November 19, 2008 for the purpose of reporting the receipt of stock compensation for the same period.