RED HAT NETWORK SOFTWARE MANAGER DELIVERS GREATER RELIABILITY AND PRODUCTIVITY FOR THE MANAGEMENT OF RED HAT LINUX SYSTEMS

Raleigh

United States, April 17, 2001

New Paid Subscription Service for Popular Red Hat Network Delivers Secure, Reliable Maintenance of Open Source Internet Infrastructure

Red Hat, Inc., (NASDAQ: RHAT)
the leader in developing, deploying and managing open source solutions, today unveiled
Software Manager, a Red Hat Network-based systems management solution. Available
immediately, Software Manager gives administrators of Red Hat Linux systems a customised connection for each system to receive real-time bug notification, security alerts, and software
updates, direct from the open source experts at Red Hat.


Customers can review software configuration data for any number of systems through one
convenient, secure web interface, making software updating across multiple systems fast and simple. Customers can also use Software Manager to select and install software updates
remotely.


"Every enterprise, regardless of size, is challenged to deliver better services to their customers using the Internet," said Billy Marshall, product manager for Red Hat Network. "Software
Manager increases IT productivity in meeting this challenge with this set of customisable
services that improve the reliability and security of the Red Hat Linux systems that power many enterprises' Internet infrastructure."


Software Manager is a Red Hat Network-based systems management solution. Red Hat Network provides secure, custom services tailored to the specific needs of each system on a customer's network to efficiently and effectively manage rapid open source development and keep systems secure and reliable. Red Hat Network provides real-time Errata Alerts (including Security Alerts, Bug Alerts and Enhancement Alerts) and RPM Updates specific to a customer's network of systems. Unique, dynamic system profiles let users customise a wide variety of updates based on their individual needs, including remote queueing and installation of RPM Updates based on user preferences.


Pricing and Availability


Pricing for Software Manager is set at $19.95 per month for each system.
Red Hat is offering a special introductory rate of $9.95 per month through September 1.
To take advantage of this offer visit http://www.redhat.com/network/purchase


About Red Hat, Inc.


Red Hat is the leader in developing, deploying and managing solutions built on the benefits of an open source platform. These solutions include an open source product platform for devices to mainframes, a complete end-to-end set of Professional Services, and the Red Hat Network as the Internet-based backbone for deployment and management of the products and services. Red Hat's open source platform includes the award-winning Red Hat Linux operating system
platform, the Interchange e-Commerce platform, Stronghold Secure Web Server, Credit Card
Verification software, High Availability Server, GNU-based developer toolkit for embedded
development and embedded run-time Linux, eCOS and RedBoot solutions.


Red Hat backs up their open source offerings with end-to-end services that include: Red Hat
Professional Consulting focused on multiplatform infrastructure and engineering services; Red Hat Engineering services for software development and porting of the operating system and for
embedded platforms and devices; Red Hat Enterprise support services for installation services and Web and telephone support and Red Hat Learning services for Linux certification (RHCE) and courses for Apache, Embedded systems, Advanced Developer and e-Commerce. Red Hat Network provides Red Hat's unique managed services capability to deploy and manage open
source products, services, support and management information on-line in real-time to more cost effectively and reliably maintain open source-based solutions.


Red Hat is headquartered in Research Triangle Park, N.C. and has offices worldwide. For investor inquiries, contact Gabriel Szulik at Red Hat, 919-547-0012.


Red Hat Europe was established in July 1999 with its European headquarters based in Surrey, United Kingdom and offices throughout Europe. Red Hat is sold and supported through a number of major distribution and industry partners throughout Europe and from http://www.europe.redhat.com



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


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, Red Hat's dependence on the continued development of the Linux kernel, and the contribution of key individuals within the Linux community who are not associated with Red Hat, 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