Rackspace Managed Hosting, the leading provider of managed hosting services, today announced that March 2002 marked two major milestones for the company: one year of profitability -- a major achievement in the hosting industry -- and a year of continuous network uptime for its customers. To celebrate this achievement, the company today also announced a month-long anniversary promotion.

While the hosting industry experienced tremendous upheaval in 2001, Rackspace was able to remain profitable while more than doubling its revenue in 2001. These results, combined with 100 percent network uptime for Rackspace customers during the past year, have put the company in position to continue to aggressively grow market share.

As part of the month-long celebration for its 12 months of sustained profitability and 12 months of continued network uptime, Rackspace will be offering $12 setups and 12 percent discounts on 12 month contracts for new hosting platforms through April.

The three-year-old company attributes its success and profitability to one thing -- its focus on unparalleled customer service, dubbed Fanatical Support(TM). "There is no reason for customers to wait weeks to get a server online or to spend hours on hold, trying to get technical support to ensure that their platform is running smoothly," said Graham Weston, Rackspace's co-chairman and chief executive officer. "The industry has been built on a utility mindset from its telecom roots. The resulting offerings have included poor service experiences. Rackspace made the commitment from the very beginning to make an amazing customer experience the cornerstone of this company."

In addition to profitability and unrivaled customer service, Rackspace's 100 percent network uptime for its customers also sets the company apart. Rackspace's state-of-the-art data centers, in Texas and London, are designed to support some of the world's most complex Web sites and server configurations. They are equipped with the very latest in routing technology and monitored and maintained to the highest standards by certified network engineers. Additionally, Rackspace has agreements with eight major bandwidth providers to ensure that its robust, high-availability network is always up and running -- as it has been for over a year now.

Weston explained, "Downtime can be very costly -- even disastrous -- for an e-business. Every second that a business can't accept transactions, or its customers can't access its Web site, can mean millions of dollars in lost business. We have exceeded our customer guarantee of 99.999 percent uptime by delivering 100 percent network reliability in the past year. We will continue to deliver this kind of service to our customers."