Red Hat Named One of the Top 50 Public Companies in Red Herring 100

Research Triangle Park

United States, May 9, 2000

Award Further Validates Red Hat's Position as the Established Open Source Market Leader

Red Hat®, Inc. (NASDAQ:RHAT), the leading provider of open source solutions for Internet infrastructure, today announced its recognition as one of the Top 50 Public Companies in the Red Herring 100, an annual profile of leading public and private companies. Red Hat's position as the first Linux distributor and leader in Linux market share has earned it the recognition as a company "whose products, services and business models define the future of business."

Judges in the 4th Annual Red Herring 100 used six criteria in determining the top companies for recognition: strategy, execution, products and services, branding, finances, and competition. Red Herring cited the importance of a company's ability to overturn existing markets or create entirely new markets as a major factor in its final determination of the Red Herring 100. In its branding section, the Red Herring 100 labels Red Hat as having "the biggest brand-name among Linux operating system distributors," and states in its market section that "Red Hat was the first Linux distributor and remains the leader, with the most market share." To view the full Red Herring 100 profile of Red Hat, please visit the following Web site: http://www.redherring.com/mag/issue79/herring100/red.html.

"Once again, a leading publication in the field of business technology has validated Red Hat's business model and position as the leader in the open source solutions," said Matthew Szulik, CEO of Red Hat. "Recognition by Red Herring as a top public company indicates that business leaders acknowledge Red Hat's ability to define new business paradigms and perform in today's demanding marketplace.

Red Hat, Inc. continues to receive substantial industry praise, including: Red Herring's Top 100 Companies of the Electronic Economy; Network World's 10 Companies to Watch; Federal Computer Week's Government Best Buy; Software Development's Jolt Award; Information Week's Product of the Year; an Upside Magazine's Hot 100 Company and E-biz Winner; and InfoWorld's Product of the Year (four years in a row). A recent Harris Interactive Survey ranked Red Hat in the Top 20 "best regarded" companies and Top 10 companies demonstrating "vision and leadership."

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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