Red Hat and Bell Microproducts Announce Distribution Agreement

Munich Germany

United States, March 1, 2005

Distributor to add Red Hat Solutions to portfolio of products

Red Hat, Inc. (Nasdaq:RHAT), the world's leading provider of open source solutions to the enterprise, today announced that it has signed a UK Master Distribution agreement with distributor, Bell Microproducts. Under the terms of the agreement, Bell Microproducts will sell Red Hat’s entire portfolio of solutions and services within their Open Source Architecture based portfolio to UK channel partners.


Bell Microproducts is one of the world's leading distributors specialising in server and storage solutions for both industrial and commercial distribution. The company adds value through a broad range of services including the testing assembly and integration of distributed server and mass storage system deployments. These infrastructure solutions are underpinned by their technical support facilities, which are ISO 9002 accredited. According to Mark Johnson, General Manager Software Europe at Bell Microproducts, the agreement with Red Hat will enable Bell Microproducts channel partners to take advantage of the growing momentum that Open Source solutions are gaining in the market place.


"We see Linux and Open Source as increasingly important to our customers," said Mark Johnson. "As the market leader, Red Hat will enable us to provide open source solutions that offer value, performance and importantly choice. We are pleased to forge this partnership and look forward to helping our customers deliver best-of-breed open source solutions to the marketplace."


"Enterprise-class partners such as Bell Microproducts play an extremely important role in Red Hat’s long term business strategy," said Hitesh Patel, UK Business Partner Manager. “Their expertise in delivering high quality hardware, software and storage technologies coupled with the Red Hat Enterprise solutions portfolio represents an excellent opportunity for partnership. Apart from the obvious mutual benefit that will be derived, the real winner will be the customers of Bell Microproducts whose delivery of Open Source solutions will be greatly enhanced through the partnership."


About Bell Microproducts

Bell Microproducts Inc a NASDAQ listed company headquartered in San Jose CA, is one of the world's largest storage focused IT companies. Bell currently operates out of more than 40 locations, across the US, Canada, Latin America, Continental Europe, and the UK, in the UK Bell Microproducts is the parent company of both Ideal Hardware Ltd and OpenPSL.


Bell Microproducts is an international, value-added provider of a wide range of high-technology products, solutions, and services to the industrial and commercial markets. The Company's offering includes semiconductors, computer platforms, peripherals, and storage products of various types including desktop, high-end computer and storage subsystems, fibre channel connectivity products, RAID, NAS and SAN storage systems and back-up products. Bell Microproducts is an industry-recognized specialist in storage
products and is one of the world's largest storage-centric value-added distributors. The Company's products are available at any level of integration, from components to subsystem assemblies and fully-integrated, tested and certified system solutions. The Company adds value with a broad range of services including testing, software loading, kitting, mass storage system integration, and computer system integration. Trained and certified technical personnel complete each of these processes at Bell Microproducts' ISO 9002 accredited facilities.


Bell Microproducts markets and distributes more than 140 brand name product lines, as well as its own Rorke Data storage and Trademark(R) computer brands, to original equipment manufacturers (OEMs), contract electronic manufacturing services (CEMS) customers, value-added resellers (VARs) and system integrators in the Americas and Europe. More information can be found in the Company's SEC filings, or by visiting the Bell Microproducts Web site at http://www.bellmicro.com.


Safe Harbor Statement


This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which reflect the Company's current views of our expected growth rates, profitability and other future events and financial performance, involve known and unknown risks and uncertainties
which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but not limited to: changing industry and economic conditions; changes in product supply, pricing, and customer demand; competition; other vagaries in the computer and electronic components markets; effects of recent restructuring initiatives; changes in relationships with key suppliers; availability of financing; foreign currency fluctuations and the other risks described from time to time in the Company's reports to the Securities and Exchange Commission (including the Company's Annual Report on Form 10-K). Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update publicly or revise any forward-looking statements. For more information please visit http://www.bellmicro.com


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:


Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the factors discussed in our most recent Quarterly Report on Form 10-Q filed with the SEC (a copy of which may be accessed through the SEC's website at ), 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 and the viability of the Internet. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.
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