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| One of
the keys to our success in the past year is Red Hat Enterprise Linux. Introduced
in May 2002, Red Hat Enterprise Linux has become the centerpiece of a stable,
sustainable business. Half of all revenues are now generated by subscription
-- representing double-digit growth from the previous year. Our enterprise customers have made it clear: They need standards, not more features. They need technology they can trust. Red Hat Enterprise Linux is the corporate Linux standard. It runs on seven computing architectures, is supported by all leading Intel hardware suppliers, and is certified by top software vendors like Oracle, BEA, and VERITAS. Red Hat Enterprise Linux allows hardware and software vendors to certify their products on a single platform. This creates a Linux revenue model for our partners, and a very important one for us: Since its introduction, 41,500 annual subscriptions have been sold. Red Hat Enterprise Linux is already at work running mission-critical datacenters, websites, retail point-of-sale terminals, and performance-intensive workstations in some of the world's largest organizations. This year Red Hat also introduced two enterprise open source
applications: Red Hat Enterprise Content Management System and
Red Hat Enterprise Portal Server. Together they represent a new facet
of our growing range of enterprise solutions.
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