Item 8.01 Other Events

Jim Lewandowski, Senior Vice President, Worldwide Sales of Rackspace Hosting, Inc. ("Rackspace") and Brian Thomson, Managing Director of Rackspace's UK operating entity, have entered into written stock selling plans ("Plans") for asset diversification purposes in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended and Rackspace's insider trading policy.

Pursuant to the Plans, the two executives will gradually liquidate a portion of their holdings in Rackspace. Selling according to the Plans may commence in November 2009. Rule 10b5-1 permits the implementation of written, prearranged stock trading plans by insiders when the insiders are not in possession of material non-public information, and allows the insiders to trade on a regular basis, regardless of any subsequent material non-public information they receive. These trading plans allow insiders to diversify their holdings and to minimize the stock market impact of sales by spreading the sales out over time.

The executive officers will report transactions made pursuant to their respective Plans to the Securities and Exchange Commission pursuant to Rule 16(b) of the Exchange Act. Except as required by law, Rackspace does not undertake to report Rule 10b5-1 trading plans by other Rackspace officers or directors or to report modifications, transactions or other activities under Rule 10b5-1 trading plans or the similar plans of any other officer or director.

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