Red Hat Leads Global Linux Use in New Surveys

Research Triangle Park

United States, July 25, 2000

Market Share Reaches Over 70 Percent Worldwide According to Netcraft Web Server Survey; Preferred by Over 55 Percent in China According to Sky Events Survey

Red Hat, Inc. (Nasdaq:RHAT), the leader in open source Internet infrastructure solutions, today announced the results of two surveys which show Red Hat's increasing lead in the global Linux market. These results confirm Red Hat's position as the most widely used and recognized provider of open source and Linux-based solutions.

"The Netcraft and Sky Events survey results highlight the synergy and benefits Red Hat's commitment to open source brings to the international community's growing IT sector," said Mark White, Vice President and General Manager, Red Hat Asia-Pacific. "Red Hat has worldwide brand recognition. The immense popularity of the Red Hat Linux solution in China shows tremendous momentum for Red Hat solutions and services in the Asia-Pacific market."

Netcraft survey shows 72 percent global market share for Red Hat
Netcraft's May 2000 Web Server Survey located almost 850,000 Web sites worldwide that run Linux and provide a personalized server header. Out of these sites, 72 percent run on Red Hat Linux, compared with 10 percent for the second largest distribution. Despite rapid growth in the Linux market and many new entrants, this survey shows that Red Hat has maintained its strong lead as the market's preferred brand. In addition, Netcraft's May survey shows the continued growth of Linux, which currently powers 36 percent of the Web sites polled, versus 33 percent in April. Netcraft's Web Server Survey can be found at http://www.netcraft.com/survey/.

"Red Hat is the Linux provider that has put the most effort into branding, product differentiation, and partnerships with Internet infrastructure companies," said Mike Prettejohn, Director, Netcraft. "In most countries of the world Red Hat Linux has become the leading version, while leading dedicated hosting companies such as rackspace.com and dn.net [Digital Nation] have Red Hat Linux as their standard install."

Red Hat leads Chinese Linux mind share, ranks first in stability and ease of use
According to a recent poll of Chinese IT professionals commissioned by Sky Events, Red Hat Linux is considered the best overall version of Linux by 56.3 percent of the respondents, more than three times the mind share of the second most popular distribution. In addition, Linux users in China name Red Hat as the most stable and the easiest to use version of Linux -- 55.8 percent and 43.9 percent, respectively. These results are particularly significant because of the large and fast-growing opportunity the Chinese market represents.

"As the commercial Linux market consolidates around Red Hat, it enables Red Hat to bring Linux to new markets that smaller companies simply cannot address," said Michael Tiemann, Red Hat CTO. "These new surveys should provide vital information to global companies looking to take advantage of the benefits that Red Hat Linux has to offer."

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

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Forward-Looking Statements

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