Daiwa Next Bank Deploys Red Hat Enterprise Linux as its Core Banking Platform

Raleigh

NC, Global, December 20, 2011

Leading bank reduces IT costs by 50 percent with Red Hat

Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced Daiwa Next Bank, the Internet bank of Daiwa Securities Group, headquartered in Tokyo, Japan, selected Red Hat Enterprise Linux as its enterprise operating system for its core banking system, realizing tremendous gains in the scalability and performance of its mission-critical system. In addition, the financial institution has reduced its technology costs by 50 percent by migrating from UNIX to Red Hat Enterprise Linux.

As one of the global leading, comprehensive financial service firms, Daiwa Securities Group operates core businesses such as retail and wholesale securities, asset management, investment, as well as system support and research services. Under its unity within the group approach, the banking institution provides a broad range of services to various clients. Daiwa Next Bank was established as a new type of Internet bank that acts as an agent of Daiwa Securities Group to provide customers with one-stop services for a full range of investments services.

“When Daiwa Securities Group’s system renovation started in 2002, we realized that open source software is necessary for IT standardization to reduce cost, depart from vendor lock-in, and achieve reliable and stable operations,” said Mr. Koichi Suzuki, senior executive managing director, Daiwa Institute of Research Ltd., a core information-generating institution within the Daiwa Securities Group.

Daiwa Securities Group began using Red Hat Enterprise Linux gradually in 2004. It has also constructed its internal cloud called “Daiwa Cloud,” a common platform across the group, using Red Hat Enterprise Linux. Based on this experience, Daiwa Next Bank developed one of the first highly-reliable core banking system built with Red Hat Enterprise Linux in Japan.

“Red Hat has a proven adoption track record with leading organizations, including our group companies. Since Red Hat Enterprise Linux is highly versatile, we can continuously utilize knowledge cultivated from others who have similar deployments and then apply these best practices to our systems. This is a major benefit offered by open source software,” said Mr. Suzuki.

Daiwa Next Bank has completed the migration of UNIX-based package system to Red Hat Enterprise Linux in only nine months. Migrating to Red Hat Enterprise Linux provided the banking institution with several cost-cutting advantages. “The cost to build our core banking system with Red Hat Enterprise Linux was cut in half compared to deploying UNIX,” said Mr. Masami Mizushima, managing director, head of information technology department, Daiwa Next Bank. “In addition, when hardware is procured in the future, we expect that the cost-effectiveness will be lower due to the high-availability of versatile servers. In the end, this will lead us to be able to provide valuable, long-term services to our customers.”

While maximizing Red Hat technology and synergy inside Daiwa Securities Group, the company will be able to provide optimized products and services that align with its customers’ needs all from using open source technology as an enabler to achieve these goals. “I think open source is the future and is most definitely the mainstream in cloud computing,” said Mr. Suzuki. “We believe that Red Hat, as a leading open source technology company, will continue to provide our firm with robust support and services enabling users to fully enjoy the benefits of open source.

For more information about Red Hat, visit www.redhat.com. For more news, more often, visit www.press.redhat.com.

About Red Hat, Inc.
Red Hat, the world's leading provider of open source solutions and an S&P 500 company, is headquartered in Raleigh, NC with more than 70 offices spanning the globe. Red Hat provides high-quality, affordable technology with its operating system platform, Red Hat Enterprise Linux, together with cloud, virtualization, applications, management, storage and service-oriented architecture (SOA) solutions, including Red Hat Enterprise Virtualization and JBoss Enterprise Middleware. Red Hat also offers support, training and consulting services to its customers worldwide. Learn more: http://www.redhat.com.

Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; uncertainty and adverse results in litigation and related settlements; the integration of acquisitions and the ability to market successfully acquired technologies and products; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company's growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission's website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods, including events in Japan. 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.


###

Red Hat, Inc. Red Hat, the Shadowman logo and JBoss are registered trademarks of Red Hat, Inc. in the U.S. and other countries. Linux is a registered trademark of Linus Torvalds.