Red Hat Ready Certification Program Ensures Linux Compatibility for Top Enterprise Users Worldwide

Durham, N.C.—November 16, 1999—Red Hat, Inc. (NASDAQ:RHAT), the leading developer and provider of open source software solutions, today announced the Red Hat Ready Program, the most comprehensive hardware certification program for ensuring hardware compatibility with the popular Red Hat Linux operating systems (OS).

The Red Hat Ready certification program uses a rigorous, thorough testing methodology from a trusted authority in open source solutions that assures enterprise users that their hardware choices are compatible with the Red Hat Linux OS.

"Enterprise users cannot settle for poor performance or reliability in mission critical applications and Internet initiatives and often won't purchase equipment that isn't certified by the OS vendor," said Paul McNamara, enterprise business unit leader, at Red Hat, Inc. "The Red Hat Ready program delivers enterprise users the assurance they need to confidently deploy the powerful Red Hat Linux OS and top hardware solutions throughout the enterprise. American Power Conversion (APC) has become the first computer peripheral vendor to receive Red Hat Ready certification. APC's Back-UPS®, Back-UPS Pro® and Smart-UPS® uninterruptible power supplies (UPS) have passed Red Hat Ready certification ensuring proper operation with the Red Hat Linux operating system."

"Availability is paramount in today's enterprise environment and Red Hat's ongoing commitment to availability and quality led us to seek 'Red Hat Ready' certification," said Ted Ives, Senior Software Product Manager at APC. "The stringent nature of this certification ensures smooth operation with Red Hat Linux operating systems as more Linux customers look to Red Hat's certification program to ensure easy setup and reliable operation."

Red Hat ensures the compatibility of Red Hat Ready certified products by subjecting submissions to a series of tests that not only determine the functionality of the system or peripheral, but also test its stability when operating with Red Hat Linux. The Red Hat certification process entails the repetition of an installation test, an automated stress test and a stability test that ensure the easy implementation and operation of Red Hat Ready products.

For a complete list of certified hardware devices and their ratings, visit www.redhat.com/hardware.

Certified vendors all gain access to pre-release versions of the Red Hat Linux OS, ensuring continued support for even the most recent software releases. They can also leverage the Red Hat Ready seal of approval on their packaging and collateral. Vendors interested in participating in the Red Hat Ready program should email RedHatReady@redhat.com.

Open source momentum
International Data Corp. (IDC) research states that Linux was the fastest-growing server operating environment in 1998, growing more than 190 percent in that year alone and capturing more than 15.8 percent of the 4.4 million revenue shipment server operating systems market segment. Additionally, IDC states that Red Hat Linux is by far the most popular distribution, preferred by 68.7 percent of U.S. Linux users.

Red Hat's numerous alliances with industry leaders and the demand for Linux-based applications has created open source support from many of the industry's leading software and hardware manufacturers, including Compaq, Computer Associates, Corel, Dell, Gateway, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle, and SAP.

About Red Hat, Inc.
Founded in 1994, Red Hat (NASDAQ:RHAT) is a market leader in open source operating system (OS) software, services and information. Along with its award-winning open source Red Hat Linux OS, Red Hat offers a full line of services, including telephone support, on-site consulting, developer training, certification programs and priority access updates, making Red Hat a leading resource for knowledgeable, innovative, mission-critical open source solutions.

Red Hat shares all of its software innovations freely with the open source community under the GNU General Public License (GPL). The Official Red Hat Linux OS and related services are available directly from the company and through its partner, distributor and reseller programs, which include top PC and server manufacturers such as Compaq, Dell, Gateway, IBM, Hewlett-Packard and Silicon Graphics.

Red Hat and the Official Red Hat Linux OS have received industry praise. Recent accolades include: Red Herring's Top 100 Companies of the Electronic Economy, Upside's Hot 100 Companies, Network World's 10 Companies to Watch, Federal Computer Week's Government Best Buy, Software Development's Jolt Award and InfoWorld's Product of the Year for three years in a row. Red Hat was also voted a "LinuxWorld Favorite" by the attendees of the two most recent LinuxWorld Expos, winning Best Server Distribution at the August show.

Red Hat is based in Durham, N.C. and has offices worldwide. Visit Red Hat on the Web at www.redhat.com. For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

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, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, and statements regarding the strategy and plans of Red Hat and its strategic partners, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, risks associated with Red Hat's dependence upon an open source business model, reliance upon independent third-party Linux developers, management of growth, reliance upon strategic relationships, expansion of Red Hat's business focus and operations, the possibility of undetected software errors, the enforceability of the GNU General Public License and other licenses under which Red Hat's products are developed and licensed, the scarcity of Linux-based applications, 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, year 2000 compliance efforts of Red Hat and of third parties on which Red Hat depends, 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.

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.