Red Hat Announces Red Hat Linux 6.1, Latest Version of Leading Open Source Server Operating System

DURHAM, N.C.--October 4, 1999--Red Hat ®, Inc. (NASDAQ: RHAT), a leading provider of open source solutions, today announced the release of a suite of Official Red Hat Linux 6.1 products. The latest release of the award-winning Red Hat Linux operating system incorporates easy installation, software update information and access, and improved system management capabilities. These new features enable users to harness the power of open source software in the demanding enterprise and Internet applications that run the day-to-day business of companies worldwide.

Red Hat Linux 6.1 extends Red Hat's commitment to customer service and the strength of [true] open source development by incorporating improvements that make it easier to install, maintain and manage Linux-based computing environments. Users can move quickly through installation with graphic-based directions, choosing from GNOME, KDE, server or custom interface settings, with seamless integration of software RAID configurations to safeguard critical data and application availability. Additionally, the PXE 2.0 technology (part of the Wired for Management Baseline 2.0) enables Red Hat Linux 6.1 installations to be done across the network, with no need for local media.

Red Hat Linux 6.1 also provides customers with fast access to the latest software technology from Red Hat through the Red Hat Update Agent, an online customer service application for retrieval and management of software updates. Red Hat has combined the RPM package management technology with the Internet capabilities of Red Hat Linux to seamlessly enable customers to take advantage of the continuous technology improvements offered from the open software development community.

"We expect that the improvements in installation, service, support and performance built into Red Hat Linux 6.1 make it an asset to enterprise networks," said Bob Young, CEO of Red Hat. "Red Hat Linux 6.1 combines the power, stability and flexibility of Linux-based open source operating systems with tools and services to handle critical business applications that ensure the peace of mind for corporate users."

Red Hat Linux 6.1 applies many advances in the 2.2.12 Linux kernel and the collaboration of the open source community, including improvements for high availability Internet server clustering and new Web or email-based configuration support for the Apache Web server.

"Open source continues to make great advances and delivers innovation to enterprise users worldwide. We see rapid advances in Linux-based operating systems as a result of the open source development model," said Young.

"Red Hat Linux 6.1 will be an attractive option to the businesses, Internet service providers, government agencies and universities that make up nearly three-fourths of our customer base." said Michael Lambert, senior vice president, Dell Enterprise Systems Group. "We plan to offer this OS on selected products throughout our entire product line, from notebooks to servers, in the months ahead."

Additional features of Red Hat Linux 6.1 Include:

• The first distributed English version of Sun Microsystems' office suite Star Office 5.1a, a complete office platform featuring word processing, spreadsheets, e-mail, graphics, web publishing, scheduling, database and management applications.


• Full LDAP (Lightweight Directory Access Protocol) integration, enabling administrators of large networks to manage distributed computing by authenticating and maintaining information about users and network services.


• 128-bit secure signature technology, Red Hat public key verification of the source of Red Hat Linux 6.1 updates. Available in the US and Canada only.

Through collaboration with Intel Corporation, Red Hat has also included PXE server support and remote management enhancements through support for the Wired for Management Baseline 2.0 specification as part of Red Hat Linux 6.1.

"Intel continues to work closely with Red Hat and the open source community to make Linux run best on Intel Architecture," said Michael Fister, Vice President and General Manager of Intel's Enterprise Server Group. "Red Hat's new release of the Linux operating system has been optimized for the Pentium III Xeon processor and this combination offers customers the performance that is required in today's Internet economy."

Pricing and Availability
The Official Red Hat Linux 6.1 is available in a variety of packages to enable different users to take advantage of open source technology. All boxed packages include an Installation Manual and Reference Guide. Red Hat Linux 6.1 can also be downloaded from ftp://ftp.redhat.com. Available in the U.S. and at international sites, the boxed versions can be purchased in select retail outlets starting October 18 and can be ordered directly from http://www.redhat.com.

• Standard, a package including two operating system CDs, one StarOffice 5.1a CD, 90 days of email support and 30 days of priority online access--for $29.95.


• Deluxe, the best way to try Red Hat Linux with two operating system CDs, one StarOffice 5.1a CD, two workstation application CDs, 30 days of phone support, 90 days of email support and 180 days of priority online access--for $79.95.


• Professional, the package for serious business users with two operating system CDs, two workstation application CDs, DB2, three server application CDs, one secure server CD, 30 days of phone support, 90 days of email support, 30 days of Apache configuration support and 180 days of priority online access--for $149.95. Available in the US and Canada only.

Corporations and ISPs can purchase additional support packages from Red Hat's Service Center. Several packages are tailored for specific customer needs, ranging from per-incident packages to full-blown, 24x7 unlimited support. Red Hat services and training are available worldwide.

Open source momentum
International Data Corp. (IDC) research states that Linux-based operating systems were 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 environment market.

Red Hat's numerous alliances with industry leaders and the demand for Linux-based applications have 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®. Red Hat Linux runs on Intel, Alpha and Sun SPARC platforms.

About Red Hat, Inc.
Founded in 1994, Red Hat (NASDAQ: RHAT) is a market leader in open source operating system (OS) software and services. 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 and complete 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 http://www.redhat.com. For investor inquiries, please contact Lippert/Heilshorn at (212) 838-3777.

LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. UNIX is a registered trademark of The Open Group. 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, 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.