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Press release

RED HAT AND JAPAN'S DAIEI INFORMATION SYSTEM FORGE COMPREHENSIVE OPENSOURCE ALLIANCE

End-to-End Strategic Agreement Includes 8,000-store Open Source Installation, Multi-Tiered Support and Future Development

RALEIGH, N.C

Red Hat, Inc. (Nasdaq:RHAT), a leader in

developing, deploying and managing open source Internet infrastructure,

today announced that Daiei Information System Co., Ltd. of Tokyo, Japan

has chosen Red Hat Japan to provide a comprehensive system of end-to-end

open source solutions for the company and its subsidiaries and

customers.



As previously announced, DIS plans to install a total of more than

fifteen thousand Red Hat Linux systems inside the (Daiei group) Lawson

convenience store chain, which includes approximately seven thousand six hundred stores nationwide. Red Hat Linux 7J, the Japanese-language version of Red Hat's most recent distribution, will replace Microsoft Windows,

enabling Lawson's in-store customers to download multimedia content such

as music and movies from terminals throughout the stores. Red Hat, which

maintains the largest open source market share in both the United States

and Japan, and its Japanese subsidiary, RHJ, supplier of Red Hat Linux

in Japan, will provide support and services for the Lawson installation.



As another key piece of the agreement, DIS has built its internal Linux

development environment around Red Hat Linux, and already uses more than

200 Red Hat systems internally. RHJ will provide engineering expertise

with the GNU development environment for DIS's future technology

development. Also, using the experience gained from the Lawson

installation, DIS will become a strategic integration partner for Red

Hat in Japan. The company plans to aggressively develop Red Hat-based

open source solutions for other Japanese businesses, with RHJ contracted

to provide full technical support.



"Daiei Information System chose Linux for its stability and superior

reliability, and a careful study of Linux suppliers revealed that Red

Hat leads the pack in technical ability, support services and

reliability," said Hidefumi Sano, Senior Vice President of DIS.

"Through this extensive strategic agreement, Red Hat has showcased its

ability to provide open source solutions that truly span across the

enterprise-- an ability that can now be extended to businesses

throughout Japan."



"Red Hat's strategy to provide complete open source solutions spanning

across the enterprise from Internet infrastructure to handheld devices

continues to be an enormous differentiator for partners like Daiei

Information systems," said Matthew Szulik, CEO of Red Hat. "Red Hat is

the unmistakable brand and market leader in the United States, and now

Japan has also embraced Red Hat as the de facto standard for Linux and

other open source solutions."

 



About Daiei Information System Co., Ltd.



Daiei Information System (part of the Daiei group), founded in 1985, is

a provider of distribution solutions, and supports network business,

which provides connections between manufacturers, retail stores and

consumers. DIS established its extensive and dynamic SCM (Supply Chain

Management) system-configuring technology by applying their original

advanced Web-EDI technology, based on extensive know-how gained from

experience in chain-store system development. SCM systems enable users

to enhance communications efficacy between companies, including business

meetings, master registration of commodities and inventory control, and

exchange of POS information. DIS positions this system- configuration

technology as its core business. It is establishing a perfect business

organisation including consulting and support in order to meet the

increased needs of Internet-based information systems configuration.



DIS is also a total-solution provider and has held exhibitions and

seminars aimed at system management engineers or potential users

considering adopting SCM systems for their organisations. DIS has earned

a high reputation from companies in a variety of fields. Detailed

information about DIS's organisation, products, and service can be found

on their web site: http://www.dis.daiei.co.jp



About Red Hat, Inc.



Red Hat (Nasdaq:RHAT) offers users one single, trusted point of contact and a common plaform 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/ecommerce 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 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 organisations 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,

+1 919-547-0012.



Red Hat Europe was established in July 1999 with its European

headquarters based in Surrey, United Kingdom and offices throughout

Europe. Red Hat Linux is sold and supported through a number of major

distribution and industry partners throughout Europe and from

http://www.europe.redhat.com/shop



Red Hat Linux was named InfoWorld's Product of the Year for four years

in a row, was given a productivity accolade in Software

Development's Jolt Awards, was named an environment/desktop finalist in

the Ziff-Davis European Excellence Awards, won the editor's

choice awards from the Linux Journal and Australian Personal Computing

magazines, and won the `Just Plain Cool' award from Australian

Personal Computing magazine. At March's LinuxWorld Expo, more than 8,000

members of the Linux community voted Red Hat a

`LinuxWorld Favourite'. Red Hat Linux recently won a Product Excellence

award from Software Development Magazine.

 



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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.

 



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, management's plans and objectives for future operations, and

management's assessment of market factors, constitute forward-looking

statements which involve risks and uncertainties. These risks and

uncertainties include, without limitation, product plans and

performance, the ability of Red Hat to attract users to redhat.com, the

lack of demonstrated widespread acceptance of e-learning as an effect

training tool, reliance upon strategic relationships, management of

growth, the possibility of undetected software errors, 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, 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

About Red Hat

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-looking statements

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.