Gateway Joins Red Hat Reseller Program

Durham

United States, September 7, 1999

Responds to Growing Customer Demand for Linux-based Operating Systems by Installing Red Hat Linux 6.0 Operating System on Gateway Business Servers

Red Hat ®, Inc., a leading developer and provider of Linux-based operating system (OS) solutions, today announced that Gateway (NYSE: GTW) has joined its authorized reseller program. When requested by its customers, Gateway will install Red Hat's powerful, open source Linux-based OS on its ALR servers for network business environments.

Gateway's built-to-order servers will be certified as "Red Hat Ready" and tested for optimal performance. Gateway's ALR servers incorporate up to four Pentium III Xeon processors, leveraging Red Hat Linux's support of symmetrical multi-processor (SMP) for up to four processors. This and many other features of Red Hat Linux 6.0 deliver stability and reliability for demanding business environments.

"Gateway customers are asking for Linux solutions and the freedom of open source environments," said Ron Smith, vice president, marketing, Gateway Business. "We believe that Red Hat has the leading Linux offering and support, delivering our customers the best possible open source solution for their business needs."

Gateway will offer the Red Hat Linux operating system as one of the operating systems available to customers on the Gateway server platforms, and installed through Gateway's Custom Integration Services group. As a Red Hat reseller, Gateway can supply clients with Red Hat's fee-based technical support offerings at point of sale, or they can be sourced directly from Red Hat. This allows customers to access the knowledge and talent of a company that is a leader in Linux-based operating systems and understands its full potential for an IT environment. In addition, Gateway professionals will receive training and certification as Red Hat Certified Engineers and will be supported by Red Hat's open source expertise delivering Gateway customers powerful solutions and top support for Linux deployments.

"The stability, reliability and the freedom to change open source systems offer users of Gateway's Red Hat Linux-based servers a powerful, well-supported solution that can handle intense and important business applications in today's companies," said Teresa Spangler, business unit leader, sales, at Red Hat, Inc.

About Gateway
Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer PC revenue in the second quarter of 1999. Our employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems. For more information, visit our Web site at www.gateway.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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