MOUNTAIN VIEW, Calif. and RESEARCH TRIANGLE PARK, NC—Jan. 29, 2001—Eazel Inc., the developer of software and services to make computers easier to use, and Red Hat (Nasdaq:RHAT), the leader in developing, deploying and managing open source solutions for Internet infrastructure, today announced plans to deliver a superior desktop experience for Red Hat Linux users. The companies have agreed to partner to deliver an integrated solution combining Red Hat Network with Eazel's suite of Internet services for individual users.

As part of their agreement, Red Hat has agreed to integrate Eazel's Nautilus software into forthcoming versions of Red Hat Linux. Desktop users will benefit from the superior user experience provided by Eazel's Nautilus interface and Internet Services while maintaining the security and scalability benefits provided by Red Hat Network. Through the integration of these two technologies, large enterprises can provide end users with a Network User Environment that integrates access to files, applications, media, Internet-based services and the Web while maintaining the security, control and scalability demanded by the IT staff.

A sneak preview of Nautilus can be downloaded on Linux systems today at http://www.eazel.com/download.

As part of the deal, Eazel will feature the Official Red Hat Linux RPM packages within its Software Catalog service. These packages are depended on by many people to maintain the reliability, performance and security of their workstations. Users will be able to access these packages from Eazel's Nautilus interface.

"The alliance we are forming with Red Hat is an exciting step forward for Linux on the desktop," said Stan Christensen, vice president and general manager, online services at Eazel. "Combining Eazel's Internet Services with the Red Hat Network creates a rock solid offering that is scalable for the enterprise, and invaluable to individual desktop users. Our joint offering will accelerate the adoption of Linux on the desktop."

"Our goal is to enable a ubiquitous Internet ranging from handhelds to servers by providing reliable, secure solutions at the lowest total cost," said Howard Jacobson, vice president of corporate development, Red Hat. "We recognize that proliferation of these solutions requires not only reliability and scalability, but it also requires an excellent user experience. We are happy to work with Eazel as a partner because we believe their strong heritage in developing superior user interfaces will further enhance the ubiquitous Internet."

About Nautilus
Nautilus is the window to a network user environment that integrates access to files, applications, media, Internet-based services and the Web to deliver a dynamic and rich user experience. Nautilus is an open source project being developed under the GPL (GNU Public License) and is a core component of the GNOME desktop project. Eazel is a member of the GNOME Foundation. A sneak preview of Nautilus can be downloaded on Linux systems today at http://www.eazel.com/download.

About Eazel
Eazel (http://www.eazel.com) develops software and services to make computers easier to use. Eazel's Nautilus software provides a superior user experience that embraces and leverages the possibilities of the Internet. Eazel is a private company headquartered in Mountain View, California, and is backed by Silicon Valley venture investors Accel Partners. In May of 2000 Eazel was listed as one of Red Herring Magazine's "Ten Companies To Watch."

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. And 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 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, Embedded Red Hat, 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. Please visit Red Hat on the Web at www.redhat.com. For investor inquiries, contact Gabriel Szulik at Red Hat, 919-547-0012.

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