Rackable Systems Receives Court Approval to Purchase Silicon Graphics Assets

Rackable Systems, Inc. (NASDAQ:RACK), a leading provider of ecological servers and storage products for medium to large-scale data centers, today announced that it received court approval to acquire substantially all of the assets of Silicon Graphics, Inc. (SGI) for $42.5 million in cash, plus the assumption of certain liabilities associated with the acquired assets.

The sale, pursuant to an amended asset purchase agreement as approved today in U.S. Bankruptcy Court in New York, allows Rackable Systems to complete the previously announced transaction under Section 363 of the U.S. Bankruptcy Code. The acquisition is anticipated to be completed by approximately May 8, 2009, subject to closing conditions.

“We are pleased with today’s news,” said Mark J. Barrenechea, president and CEO of Rackable Systems. “With this acquisition, Rackable will be positioned to solve the most demanding business and technology challenges our customers confront today. We believe we will have a stronger company with differentiated product lines and professional services; reaching commercial, government and scientific sectors on a worldwide basis.”

Rackable and SGI customers will benefit from a comprehensive portfolio of hardware, software and services, enabling the deployment of technologies for large-scale data storage and management, clustered compute scale-out, shared memory systems, visualization solutions, data center solutions and HPC productivity tools.

To learn more and for further updates, please visit www.rackable.com/sgi.

Conference Call Information

Rackable Systems will discuss this update as part of its previously announced Q1 earnings financial call taking place on Tuesday, May 5, 2009, at 2:00 p.m. PDT (5:00 p.m. EDT). The public will be invited to listen to a live web cast of the call on the Investor Relations section of Rackable’s website at investors.rackable.com. A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available until the next earnings call. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available for five days and can be accessed by dialing 719-457-0820 or 888-203-1112 and entering the confirmation code: 5980490.

About Rackable Systems

Rackable Systems, Inc. (NASDAQ:RACK) is a leading provider of Eco-Logical™ servers and storage for medium- to large-scale data center deployments. The company’s products, available for purchase or lease, feature leading designs in the areas of density, thermal efficiency, serviceability, power distribution, data center mobility and remote management. Rackable is a founding member of The Green Grid, and Think Eco-Logical, an initiative which blends corporate responsibility for increased sustainability with the need to manage expenses and increase performance. Rackable serves cluster computing and services, enterprise software, federal government, digital media, financial services, oil and gas exploration and HPC customers worldwide, and maintains headquarters in Fremont, California. For more information, please visit www.rackable.com.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding the proposed acquisition, anticipated product performance, general business outlook and projected results of operations. Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Actual results may differ materially from forward-looking statements due to a number of risks and uncertainties including: the risk that conditions to closing of the acquisition may fail; liabilities assumed by Rackable in the acquisition may be greater than anticipated; key personnel may not remain with Rackable following the closing; the anticipated synergies of the combined companies and the potential cost reductions may not be achieved; and the combined operations may not be successfully integrated in a timely manner, if at all. Detailed information about other potential factors that could affect Rackable Systems' business, financial condition and results of operations is included in Rackable Systems' annual report on Form 10-K under the caption "Risk Factors," in Part I, Item 1A of that report, filed with the Securities and Exchange Commission ("SEC") on March 19, 2009, as updated by Rackable Systems' subsequent filings with the SEC, all of which are available at the SEC's Web site at http://www.sec.gov. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. Rackable Systems undertakes no responsibility to update the information in this report.