Red Hat Unveils Expanded E-Commerce Offerings

LINUXWORLD NEW YORK—January 31, 2001—Red Hat, Inc. (Nasdaq:RHAT), the leader in developing, deploying and managing open source Internet infrastructure, announced today at LinuxWorld in New York City new e-commerce additions to its comprehensive line of open source Internet infrastructure solutions.

Red Hat will integrate Akopia's popular Interchange e-commerce platform into Red Hat's solutions portfolio that now includes Interchange, the Stronghold Secure Web Server and CCVS e-commerce payment system for a comprehensive e-commerce solution stack. With the addition of Interchange, customers and organizations looking to build an integrated e-commerce infrastructure with the flexibility and low cost advantages of open source can look to Red Hat for comprehensive open source technologies and global support.

The Red Hat e-commerce solution stack emphasizes the completeness of Red Hat's open source offerings for both the device and server markets. Red Hat's comprehensive solutions are tied together through Red Hat Network, a powerful Internet-based service for delivering open source innovations, upgrades, security features and user support quickly and cost-effectively.

"Customers recognize the flexibility and economic advantages of open source and are looking to Red Hat for an integrated line of open source Internet infrastructure solutions and a global support network," said Matthew Szulik, president and CEO of Red Hat. "This latest initiative continues Red Hat's mission to provide everything needed for an open source infrastructure spanning powerful servers, the software running them and the next-generation of devices tied together through the Internet. Customer demand for the high value of open source solutions continues to drive our acquisition strategy and our ability to offer an end-to-end product line that challenges less economical alternatives."

Red Hat Integrated E-commerce Solution Stack
Red Hat's complete line of e-commerce solutions dramatically reduce the cost and time to market and required to fuel a company's e-business initiatives. It includes:

• Red Hat Linux 7, the latest release of the world's most popular, award-winning Linux operating system.



• Interchange, the most mature and robust open source, e-commerce platform available today. Developed by Akopia, Inc., of Reston, VA, this enterprise-class e-business software application is capable of supporting hundreds of concurrent users, thousands of transactions, and seamless integration with existing legacy systems. In addition, Red Hat announced at LinuxWorld in New York today that it has acquired Akopia.



• Red Hat Stronghold Secure Web Server, the number one commercial, secure Web server. It is based on the most current, open source Apache technology, this Web server delivers the ideal price and performance standard for secure web server operations, through bulletproof design and enterprise scalability derived from ongoing open source collaboration by the world's leading developers.



• CCVS e-commerce payment processing software, a critical piece of infrastructure for any company conducting business on the Internet currently in use by more than 150 ISPs worldwide. CCVS automates credit card authorization processing.



• The Red Hat Network which dramatically reduces the cost of deploying and managing an open source operating system and e-commerce platform with automated, online updates that assure reliability, security and availability of systems 24x7. The Red Hat Network ties all of Red Hat's solutions together to deliver a consistent, reliable stream of open source innovation to customers while removing the time consuming maintenance normally associated with managing an Internet infrastructure.



• The Largest Single Point of Contact for a Variety of Support and Training Services that deliver unmatched open source expertise---and help foster that expertise in today's corporate computing environment.

For more information on Red Hat's comprehensive open source solutions, please see www.redhat.com.

About Red Hat, Inc.
Red Hat (Nasdaq:RHAT) offers users one single, trusted point of contact and a common platform for developing, deploying and managing open source across Internet infrastructure and devices that connect to the Internet, ranging from small embedded devices to high availability clusters and integrated Web server/e-commerce OSes. The Red Hat Network, Red Hat's unique management technology, helps companies worldwide easily manage it all by delivering open source products, service, support and information on-line in real-time. In addition to the award-winning Red Hat Linux server operating system, Red Hat offers Stronghold Secure Web Server, Interchange and Credit Card Verification Software for secure e-commerce and is the principal provider of GNU-based developer tools and support solutions for a wide variety of embedded processors. Red Hat also provides run-time solutions such as Linux, eCos, Red Hat embedded, the award-winning RedBoot, custom engineering services, support, and training to organizations in all embedded and Linux markets. 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.

Forward-Looking Statements
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