Red Hat Announces New, Expanded Operations In Japan

Durham

United States, September 7, 1999

Open Source Leader Further Expands Sales, Marketing and Technical Support for Linux in Japan; Seasoned Industry Executive Masanobu Hirano to Head Red Hat Japan

Red Hat ®, Inc. (NASDAQ: RHAT), a leading developer and provider of Linux-based operating system solutions, today announced Red Hat Japan. The new Japanese operation will deliver the company's award-winning Red Hat Linux software and services directly to the Japanese marketplace. Red Hat Japan will feature a new, expanded headquarters and staff, and a new leader for Red Hat's operations in Japan.

Red Hat has named software industry veteran Masanobu Hirano as president of Red Hat Japan. Prior to Red Hat, Mr. Hirano was president of Hyperion Japan, a subsidiary of Hyperion Solutions, one of the country's most successful online analytical processing (OLAP) solution vendors. He also served as vice president and was a board member of ASCII Corporation, one of Japan's pioneering computer software companies.

"Japan has always been an important market for Red Hat Linux and open source software. With the opening of Red Hat Japan, we can better serve our Pacific Rim customers and the rest of the fast-growing Japanese open source software market," said Bob Young, CEO of Red Hat, Inc. "As we further strengthen our ability to sell and support Red Hat Linux in Japan and the Pacific Rim, we are very excited to have a seasoned industry executive like Masanobu Hirano leading our Japanese operations."

"The demand for complete open source solutions such as Linux is on the rise in Japan, and now Red Hat Linux is there to meet this demand," said Masanobu Hirano, president, Red Hat Japan. "Red Hat offers the most comprehensive solution available on the market today, and I am excited to join a recognized leader dedicated to Linux and the open source movement."

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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