Red Hat Escalates Reseller Channel Efforts With Expanded Distribution Partnerships and New Easy Access Reseller Kits

Research Triangle Park

United States, December 14, 1999

Comprehensive Channel Solutions to Help Resellers Easily Jump into Fast-growing Open Source Opportunities

"KeyLink Systems is focused on offering value-added services to its partners," said Bob Bailey, senior vice president of Pioneer's Computer Systems Division. "Red Hat's new Reseller Starter Kits enable us to offer our resellers a high-quality reseller program at a reasonable price."

"Red Hat fills a critical role in the value-added distribution space," said Ray Fischer, Executive Vice President and General Manager of Hall-Mark Global Solutions Services division.

"By providing Linux software to our North America customer base of leading value-added resellers, we are helping to improve our customer's business opportunities."

"In addition to an aggressive margin structure, today's resellers are looking for excellent support and on-going training and solutions designed specifically for their unique needs," said Teresa Spangler, Business Unit Leader Sales, Red Hat, Inc. "We have designed a program to deliver these services to Red Hat resellers and their customers."

Program details
The Red Hat Reseller Starter Kit enables the reseller to join the first level of the company's channel program and includes the necessary products to get the reseller up and running. Red Hat Reseller Starter Kits have pricing options available from $500 to $5,000.

For resellers who prefer a more significant partnership with Red Hat, there are three starter kits tailored to their businesses; System Builder Starter Kit, System Integrator Starter Kit and Application Provider Starter Kit. Resellers who purchase one of these kits join the second level of the program and are named a Red Hat Certified Reseller.

"Red Hat's reseller program offers its resellers and their customers a wide variety of choices that allow them to take full advantage of the momentum of the open source movement," said Curt Tueffert, VP Sales, Team Red Hat, Jones Business Systems, Inc. "Red Hat's Starter Kits provide the pricing, product and support that enable us to tailor open source solutions to meet our customers' individual needs."

"More and more resellers and integrators are looking for a quick, competitive entry into the growing Linux market," said Maria Johnston, vice president of software product marketing, Tech Data. "By providing a turnkey package, Red Hat's Starter Kits will assist resellers in accelerating their open source efforts."

Red Hat Reseller Starter Kits are currently available from Red Hat distributors in the U.S. and Canada. More information on Red Hat's Reseller Programs can be found at www.redhat.com/resellers.

Open source momentum
International Data Corp. (IDC) research states that Linux was the fastest-growing server operating environment in 1998, growing more than 190 percent in that year alone and capturing more than 15.8 percent of the 4.4 million revenue shipment server operating systems market. Additionally, IDC states that Red Hat Linux is by far the most popular Linux-based operating system, preferred by 68.7 percent of U.S. Linux users.

Red Hat's numerous alliances with industry leaders and the demand for Linux-based applications has created open source support from many of the industry's leading software and hardware manufacturers, including Compaq®, Computer Associates, Corel, Dell, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle® and SAP®. Red Hat Linux runs on Intel, Alpha and Sun SPARC platforms.

About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com

Forward-Looking Statements

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