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Press release

RED HAT SUPPORTS THE COMPLETE IBM eSERVER LINE FOR THE NEXT PHASE OF E-BUSINESS

Red Hat is the First Linux Developer to Offer Complete Package of IBM Software, and eServer Line, Along With Services, for Linux.

RALEIGH, N.C

Red Hat Europe (NASDAQ: RHAT), the leader in

developing, deploying and managing open source Internet infrastructure,

today announced its support of IBM's new eServer*, the next generation

of servers created to handle the unparalleled demands of e-business.



IBM's newly introduced eServer line is built around open standards and

features mainframe-class reliability and scalability while providing

capacity on demand to meet the intense requirements of today's

high-speed networks.



With this announcement, Red Hat Linux will run on the entire IBM eServer

line and all of IBM's Linux-enabled software, providing customers

application flexibility across a variety of platforms from large

enterprises to small businesses.



Red Hat and IBM entered an agreement in August 2000 (``IBM and Red Hat

Collaborate to Deliver e-business Software Solutions for Linux'') to

jointly market, distribute and support bundled IBM, Lotus, Tivoli and

Red Hat software offerings. For more information and availability of

these offerings, please see

www.europe.redhat.com/products/software.php3.



``With the eServer launch just last week, it's exciting to see the

entire line embraced by Red Hat - the industry-leading Linux

developer,'' said Erich Clementi, Vice President, Enterprise Systems

Group, IBM EMEA. ``Red Hat clearly understands the demands placed on

companies implementing e-business on Linux and can now offer customers

support across highly scaleable server and middleware lines delivering

an integrated solution for the smallest business to the largest

enterprise.''



The IBM eServer family is designed for serious e-business -- where

customers need 24x7 reliability and security. The new line combines

IBM's best server assets, including years of expertise in developing

servers and the software that works best on them, with an

industry-leading commitment to deliver what customers need to make their

e-infrastructure work for the next phase of e-business.



``IBM and Red Hat have a strong relationship that dates back to the

early days of our company and has expanded several times, and we see

this announcement as reinforcing IBM's commitment to Linux and to Red

Hat," said Colin Tenwick, vice president, Red Hat EMEA ``The fact that

Red Hat Linux supports the entire eServer line demonstrates the

scalability, reliability and power of our offering. With Red Hat Linux

and the IBM eServer line, IBM customers will have the best possible

foundation on which to build their Internet infrastructure.''



Red Hat Linux will be supported on the complete IBM eServer Line, which

includes:

- IBM eServer zSeries: most reliable, mission-critical data and

transaction server on earth.

- IBM eServer pSeries: most powerful, technologically advanced UNIX

server.

- IBM eServer iSeries: high performance, integrated business server for

mid-market companies.

-IBM eServer xSeries: affordable, Linux-ready, Intel-based servers with

mainframe-inspired reliability technologies.

In addition, Red Hat is making available today, via their Web site

(www.europe.redhat.com/products/software.php3), the following IBM

middleware:

- Red Hat Linux and IBM DB2 Universal Database

- Red Hat Linux and IBM WebSphere Application Server

- Red Hat Linux and Lotus Domino

- Red Hat Linux and IBM Small Business Pack for Linux

Open Source Momentum

International Data Corp. (IDC) research states that paid Linux shipments

grew faster than any other server operating system over the past two

years, and their preliminary figures for 1999 show Linux shipments hold

24.6 percent of the server operating system market, up from 15.8 in

1998. IDC also states that Red Hat holds 50.2 percent of Linux vendor

market share and that Red Hat Linux is by far the most popular

distribution, preferred by 68.7 percent of U.S. Linux users.



Research firm Netcraft, Inc. (www.netcraft.com), states that as of May 2000, 30 percent of all public Web sites run on Linux-based operating

systems, making Linux the most popular choice for deploying public Web

sites. IDC research shows 40 percent of all spending on Linux servers is

for Internet related applications, firmly entrenching Linux servers in

the Internet infrastructure.



Finally, IDC predicts that by 2002, there will be more than 55 million

handheld and notebook-style information appliance devices and that by

2005, shipments of these appliances will exceed shipments of PCs.



Red Hat's numerous alliances with industry leaders and the demand for

Linux-based applications has created open source support from many of

the industry's leading software and hardware manufacturers, including

Dell, Compaq, Computer Associates, Hewlett-Packard, IBM, Intel,

Netscape, Novell, Oracle and SAP.



# # #



*The IBM eServer brand consists of the established IBM e-business logo

with the following descriptive term "server" following it. The IBM

e-business logo, xSeries, iSeries and zSeries are all trademarks of IBM

Corporation.

 



Red Hat, Inc.



Founded in 1994, Red Hat (Nasdaq:RHAT), is the leader in development,

deployment and management of Linux and open source solutions for

Internet infrastructure ranging from small embedded devices to high

availability clusters and secure web servers. In addition to the

award-winning Red Hat Linux server operating system, Red Hat is the

principle provider of GNU-based developer tools and support solutions

for a wide variety of embedded processors. Red Hat provides run-time

solutions, developer tools, Linux kernel expertise and offers support

and engineering services to organizations in all embedded and Linux

markets.



Red Hat applies its technological leadership to create open source

solutions for all points on the Internet and in pervasive computing

environments, offers services backed by the best understanding of open

widely trusted open source leader and corporate partner. Red Hat offers

users one single, trusted point of contact and a common platform for

developing, deploying and managing open source across the Internet and

devices that connect to the Internet.



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

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.



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, 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 to continue to develop the Linux kernel and

other software, reliance upon strategic relationships, Red Hat's

dependence upon an open source business model, reliance upon independent

third-party Linux developers, management of growth, 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, 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 www.sec.gov

 

* Indicates trademark or registered trademark of Linus Torvalds.



** Indicates trademark or registered trademark of Red Hat, Inc.



*** Indicates trademark or registered trademark of IBM Corporation

and/or its subsidiaries.

 

 

 

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.