X0304 4 2012-02-27 0 0001107694 RACKSPACE HOSTING, INC. RAX 0001441652 Napier A Lanham C/O RACKSPACE HOSTING, INC. 5000 WALZEM ROAD SAN ANTONIO TX 78218 1 1 0 0 CEO Common Stock 2012-02-27 4 A 0 24768 0 A 455803 D Common Stock 2012-02-27 4 A 0 750000 0 A 1205803 D Common Stock 2012-02-27 4 S 0 39400 53.2550 D 1166403 D Common Stock 2012-02-28 4 S 0 236630 52.9527 D 929773 D Common Stock 3687830 I Shares held by HBSA, LP. Common Stock 37492 I Held in trust for the benefit of Mr. Napier's children. These shares were issued in the form of a performance-based Restricted Stock Award(PSA). The shares under the PSA are subject to a cliff vest that is based on the Company's total shareholder return performance in relation to an index, which will be measured three years from the grant date. These shares were issued pursuant to the vesting of shares under a performance-based Restricted Stock Unit Award (PSU). The performance criteria achieved was the favorable comparison of the Company's total shareholder return (TSR) performance in relation to companies that make up the Russell 2000 index (the Company ranked in the 98th percentile during the performance period). The TSR performance was measured three years from the PSU grant date of February 24, 2009. These shares were sold to cover the tax obligation from the vesting of 750,000 shares pursuant to the performance-based Restricted Stock Unit Award (PSU) granted to Mr. Napier on February 24, 2009. The prices for these sales of shares ranged from $52.43 to $53.84 per share. The prices for these sales of shares ranged from $52.60 to $53.60 per share. The registrant undertakes to provide, upon request by the SEC staff, the issuer, or a security holder of the issuer, full information regarding the number of shares purchased or sold at each separate price. Mr. Napier is the managing general partner and a limited partner of HBSA, LP, a limited partnership. Mr. Napier disclaims any beneficial ownership of shares held by HBSA, LP except to the extent of any pecuniary interest therein. /s/ William Alberts by Power of Attorney 2012-02-29