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Press release

German Manufacturing Firm Modernizes IT Systems with Red Hat Enterprise Virtualization

Ferrotec Increases Scalability, Flexibility and Performance While Reducing TCO with the Combination of Red Hat Enterprise Virtualization and Red Hat Enterprise Linux

RALEIGH, N.C

RALEIGH, NC –July 26, 2012 – Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced that Ferrotec, a global market leader in technologies based on the magnetic liquid Ferrofluid that is used in multi-phase motors, dampers for shaft ends and transformer cooling, has deployed Red Hat Enterprise Linux and Red Hat Enterprise Virtualization at the core of its infrastructure. Through this Red Hat technology combination, Ferrotec is increasing scalability, flexibility and performance while lowering operating costs.



Headquartered in Japan, the Ferrotec Group also has a large presence throughout Europe. In line with the company’s growth and additional business requirements, its IT infrastructure expanded with the purchase of new servers and an increase in memory capacity. As the company's IT systems peaked, performance began to decrease, creating the need for a modern technology infrastructure to meet Ferrotec’s business demands.



In mid 2011, Ferrotec’s legacy systems and IT infrastructure could only be administrated with major effort. Therefore, Ferrotec’s IT team, together with its core management team, embarked on a fundamental modernization and transition to a virtualized infrastructure.



Ferrotec assessed possible alternative solutions together with GONICUS, an IT service provider out of Arnsberg, Germany, that has been working for Ferrotec for many years. GONICUS, a Red Hat Advanced Partner, specializes in infrastructure and virtualization strategy, and is one of the largest independent service providers for open source software in Germany. As Ferrotec began planning its migration strategy, one of the critical requirements for the new infrastructure was to continue the existing installation based on Linux. Ferrotec found what it was looking for from OpenV3 from Magirus, one of Europe’s leading providers of IT solutions and a value-added distributor of Red Hat, based in Stuttgart. OpenV3 includes solutions from Cisco, EMC and Red Hat in a best-of-breed strategy that combines into an infrastructure package that can be implemented rapidly.



Ferrotec’s new IT infrastructure has reaped several important benefits in areas such as administration, maintenance and service, especially when compared to its former, heterogeneous infrastructure. By consolidating its server landscape, Ferrotec is anticipating lower operating costs as the same number of staff can supervise a larger number of systems and applications.



“We analyzed other virtualization alternatives in the market, but the high-performance enterprise management feature set and low TCO Red Hat Enterprise Virtualization provides was an ideal combination for what we needed for our systems,” said Joachim Schwender, head of IT at Ferrotec. “We now have a fully functional datacenter with Red Hat Enterprise Virtualization at its core. Our new virtualized infrastructure allows us to balance performance, flexibility and administration requirements. The revitalization of our IT operations with Red Hat has made us better prepared for the future of our business.”



The company’s new IT infrastructure also has enabled Ferrotec to map its critical business processes in a highly reliable and flexible manner.



Additional Resources

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About Red Hat, Inc.

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; uncertainty and adverse results in litigation and related settlements; the integration of acquisitions and the ability to market successfully acquired technologies and products; 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.



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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.