Red Hat Expands European Presence

Research Triangle Park

United States, February 10, 2000

New Offices in France and Italy to Strengthen Red Hat's Solutions Offerings to European Customers

Red Hat, Inc. (NASDAQ: RHAT), the market leader in open source solutions, today announced the opening of Red Hat Italy and a definitive agreement to open Red Hat France. Red Hat's new offices in Milan, Italy and Cagnes sur Mer, South of France will deliver the company's award winning Red Hat Linux software, support and training services to its European enterprise customers.

The opening of the Italian office follows Red Hat's recent acquisition of Sistemi Research Laboratories, the party responsible for the production and the support of the Offical Red Hat Linux Italian version since the release 5.0. The new office in Cagnes sur Mer, South of France, will deliver the company's award winning Red Hat Linux software and support to enterprise users in France and all French-speaking countries, including Northern Africa. Red Hat has named Federico Musto to head Red Hat Italy and Joel Bernier is expected to hold the same post in the Cagnes office. Musto was formerly head of Sistemi Research Laboratories. Bernier was a pioneer in distributing Linux to the French-speaking market in 1995. Bernier also headed Red Hat French distributor Logiciels du Soleil.

The new Italian and French offices, which will function as wholly-owned subsidiaries of Red Hat, Inc., will expand Red Hat's current distribution, service and engineering partnerships in Europe. Red Hat's UK office and European headquarters are based in Guildford, Surrey.

Red Hat is the largest company in the world dedicated to providing open source technology, information and services, offering the full spectrum of open source software and support from enterprise deployments to embedded and handheld platforms. End users worldwide benefit from the company's unmatched technical expertise and a wide-array of industry partnerships with major computing vendors like Compaq, Dell, IBM, Intel and Hewlett-Packard to support their rapidly-growing adoption of open source solutions.

Open source and Internet 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 segment. IDC also states that Red Hat Linux is by far the most popular distribution, preferred by 68.7 percent of U.S. Linux users.

According to research firm NetCraft, Inc. (http://www.netcraft.com), 29 percent of all public Web servers run on Linux, making Linux the most popular operating system for public Web sites. Finally, IDC predicts that by 2002, there will be more than 55 million handheld and notebook-style information appliance devices and that by 2005, shipments of these appliances will exceed shipments of PCs.

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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