United States, May 24, 2000

erver-Based Pricing Delivers Flexible, Scalable Support Options for Fast-growing Enterprise and Internet Infrastructure Providers

Red Hat, the market leader in open source Internet infrastructure solutions, announced today a new per-server support programme that provides scalable, 24x7 annual services for desktops and servers.

Whether a customer is managing a single system or a full IT infrastructure with thousands of systems, Red Hat's annual per server offering scales to meet their requirements. Regardless of infrastructure size, these offerings give customers deploying Red Hat Linux and other open source solutions the level of service beyond that required by the quickly advancing technological environments of today. In addition, the new offering provides the flexibility to easily add systems at an increasingly lower cost per system as the number desktops or servers grow.

Red Hat is the first Linux-based software and services provider to allow customers to define their own service programme based on their IT environment size. This system-based subscription programme includes advanced configuration and systems administration support through Internet or telephone with standard hours, as well as 24x7 premium support based on the number of enterprise servers or workstations. Additionally, support for other open source applications such as Apache and Sendmail are included.

"As Linux continues to expand and become more mainstream, Red Hat continues to lead with its superior level of Linux-based services and support," said Bill Claybrook, research director, Aberdeen Group. "Red Hat's expansion of its enterprise support programmes gives its small or large customers the ability to tailor their programmes to serve their specific needs. They can stay within their budgets, but still receive the highest level of support available."

These offerings add another critical element to Red Hat's significant service capabilities, which include international training and certification, 24x7 telephone and Internet support, and on-site services. Red Hat recently announced an agreement with IBM to deliver Red Hat's hands-on, real-world Red Hat Certified Engineer (RHCE) Linux training and certification programme at IBM training centres around the world.

"Red Hat's services and support are unmatched in their dependability and flexibility,'' said Billy Austin, vice president of marketing & sales for (NASDAQ: ODSI). "Red Hat gives us the ability to modify and scale our service program to satisfy our specific support needs and gives us the most reliable and secure Linux-based solution."

Red Hat also offers developers direct developer-to-developer engineering support, which lets programmers talk to Red Hat's expert Linux developers to resolve development challenges. In addition, the company offers a developer curriculum that is available in 16 cities and includes programming for the GNOME graphical user interface included in Red Hat Linux.

"We're putting the control back in the customers hands by giving them enterprise-class service regardless of the size of their business," said Carolyn Sparano, director of services for Red Hat. "Customers looking at Linux to build new infrastructures now have the flexibility to add as many systems as they need. As their requirements increase, so does the value."

This new enterprise support programme combines with Red Hat's other Linux training and support programmes to provide customers with the industry's widest array of service and support choices. In an InternetWeek comparative review, reviewers found that "what truly sets Red Hat apart from the pack is still technical support. No other distributor offers the support options of Red Hat."

About Red Hat, Inc.

Founded in 1994, Red Hat is a leader in the development of Linux-based operating system software (OS) and services. Based in Durham, N.C., Red Hat builds the most accessible and advanced server OS available anywhere with technical innovations such as RPM and the disk druid installation tool. Red Hat Linux is available for Intel, Compaq Alpha and Sun SPARC platforms. Red Hat Linux available directly from the company and through Red Hat's partner, distributor and reseller programs, which include top PC and server manufacturers like Dell, IBM and Hewlett-Packard.

Red Hat Europe was established in July 1999 with its European headquarters based in Surrey, United Kingdom and offices throughout Europe. Red Hat Linux is sold and supported through a number of major distribution and industry partners throughout Europe.

Red Hat Linux was named InfoWorld's Product of the Year for four years in a row, was given a productivity accolade in Software Development's Jolt Awards, was named an environment/desktop finalist in the Ziff-Davis European Excellence Awards, won the editor's choice awards from the Linux Journal and Australian Personal Computing magazines, and won the "Just Plain Cool" award from Australian Personal Computing magazine.

At March's LinuxWorld Expo, more than 8,000 members of the Linux community voted Red Hat a "LinuxWorld Favorite". Red Hat Linux recently won a Product Excellence award from Software Development Magazine.

LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. UNIX is a registered trademark of The Open Group. All other names and trademarks are the property of their respective owners.