Interactive Objects and Red Hat Align to Co-Develop New Digital Audio Playback Device Platform

Bellvue

United States, September 27, 2000

Interactive Objects, Inc., (OTC.BB:OBJX), and Red Hat, Inc. (Nasdaq:RHAT) today announced a strategic alliance designed to enable the development of a family of new digital audio playback devices based on the Dadio digital audio OS and platform. The Dadio platform, which is built on Red Hat's eCos kernel OS, is a leading solution for OEMs seeking entry into the rapidly growing market for digital audio playback devices. As part of the alliance, the companies announced plans to co-develop a new system development kit (SDK) for OEMs that simplifies the design, integration and testing processes and accelerates time-to-market.

"Our OEM customers are asking us for a common platform to extend their product line, and need tools and services that simplify their development process," said Dennis Tevlin, president of iObjects. "The Dadio SDK will set a new standard in development efficiency and quality."

Dadio, which is already used in the digital audio player designs of Iomega's HipZip® and I-Jam's WinJam, was released in June of 2000. The new Dadio SDK is expected to be available by the end of this year.

"This alliance is an important part of our strategy to extend Red Hat's systems and engineering services into new vertical markets," said Michael Tiemann, CTO of Red Hat. "Digital audio is one of the fastest growing markets for embedded systems. This partnership will bring together the best of both companies' capabilities."

In addition to co-developing the Dadio SDK, iObjects and Red Hat will offer OEMs an expanded set of integration, testing and support services. The increased level of collaboration will allow the companies to accelerate new product development activities while also increasing their collective capacity to service new OEM partners.

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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