Red Hat and HP Announce World-Wide Sales Initiative

Research Triangle Park

United States, December 15, 1999

E-Commerce Sales and Channel Alliance to Boost Availability of HP's Leading OpenMail System and Red Hat's Open Source Solutions to Enterprise Environments

  • HP's OpenMail(1), the industry's leading business messaging and collaboration system for Linux-based operating systems, will be made available for direct purchase through Red Hat's portal, located at www.redhat.com/store. In doing so, the multitudes of visitors to Red Hat's portal site each month will be offered the opportunity to easily empower their enterprise networks with the leading Linux-based business messaging and collaboration system.
  • Red Hat has included a fully functional copy of OpenMail in boxes of Red Hat 6.1 Professional. This version of OpenMail is unrestricted for a limited number of users. This will allow customers purchasing the Official Red Hat Linux distribution to take advantage of OpenMail's proven, robust, e-services(2) technology.
  • In addition to today's agreement, Red Hat plans to recruit and enroll several of HP's key North American OpenMail value-added resellers (VARs) into its recently enhanced Channels Program, providing them with the training and support needed to deliver open source solutions to enterprises and vertical markets.

"Messaging, collaboration and e-mail systems are a fast-growing, vital part of today's Internet-enabled business," said Teresa Spangler, business unit manager, Sales, Red Hat, Inc. "We expect our alliance with HP to boost sales of HP's OpenMail via our portal, while delivering HP's channel the expertise and solutions needed to expand their businesses and capitalize on both the Internet and open source market opportunities."

"OpenMail on Red Hat Linux has been a dream come true for us," said Jeff Mays, network manager at First American Network, Inc. "In my opinion, the administration, flexibility, speed and stability of this product is unmatched. I can go home every night and sleep easy, knowing that Red Hat Linux and OpenMail will be running smoothly with no problems at all."

"We're simply thrilled by the customer feedback on OpenMail for Linux," said Eric Buatois, general manager of HP's Communications Industry Business Unit. "We've seen tens of thousands of downloads, and a surprising number of those companies already made purchasing decisions, even before the final Linux version was available."

Rolling out Red Hat's channel program
This agreement with HP is the first alliance under Red Hat's newly redesigned reseller program and channel initiative, which tailors Red Hat's powerful, industry-leading open source expertise and solutions for today's VARs, system integrators, system builders and custom application providers. The Red Hat Reseller Program includes Red Hat Reseller Starter Kits --- the only comprehensive channel solution designed to give resellers the pricing, product, training and support needed to easily jump into fast-growing Linux and open source opportunities.

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 unit revenue shipment server operating systems market segment. Additionally, IDC states that Red Hat Linux is by far the most popular distribution, 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, HP, IBM, Intel, Netscape, Novell, Oracle® and SAP®.

About HP
Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP plans to launch Agilent Technologies as an independent company by mid-calendar 2000. Agilent consists of HP's test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses, and has leading positions in multiple market segments.

HP has 83,200 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP, its products and the company's Year 2000 program can be found on the World Wide Web at http://www.hp.com.


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

Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.

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