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Press release

Red Hat Completes Acquisition of JBoss

Open source leader enables a low-cost path to service-oriented architectures

RALEIGH, N.C

Red Hat (NASDAQ: RHAT), the world's leading provider of open source solutions to the enterprise, today announced the completion of its acquisition of JBoss, Inc. By acquiring JBoss, the global leader in open source middleware, Red Hat is now positioned to accelerate the shift to service-oriented architectures (SOA) and enable the next generation of web-enabled applications running on a low-cost, secure open source platform.

"Red Hat's acquisition of JBoss reflects a desire by our global customers to accelerate and expand the use of open source in the enterprise," said Matthew Szulik, Chairman and CEO, Red Hat. "The innovation and value of the open source platform continues to transform the performance of the twenty-first century enterprise."

With today's announcement, JBoss will become a division of Red Hat with a common business model of delivering and providing production support of open source software. Customers will now have access to a single, proven global production support organization that can service both Red Hat and JBoss customers, in addition to procuring JBoss offerings through the established global channels of Red Hat. With this acquisition, Red Hat continues to lead the widespread adoption of open source solutions for the enterprise, demonstrating the power of its development model to create innovative, high quality software, while simultaneously providing flexible and cost-effective solutions for customers.

Marc Fleury, founder and former CEO of JBoss and now Senior Vice President and General Manager of the JBoss division of Red Hat, noted: "Joining forces with Red Hat makes absolute sense for JBoss employees, customers, partners and the community as a whole. We share a common passion for innovation, technology and open source. Red Hat will give JBoss a platform to grow, so we can both continue to deliver exceptional open source products, services and customer value. I am personally very excited to help further drive the adoption of our market-leading solutions."

"As one of the largest and most experienced global benefits providers servicing more than 10 million plan participants across all markets, CitiStreet depends on Red Hat Enterprise Linux and JBoss for our operations every day," said Barry Strasnick, Chief Information Officer, CitiStreet. "We have realized the value of open source for the enterprise, especially in the areas of cost-savings, performance and security. The acquisition of JBoss by Red Hat will only benefit our future management, development and deployment."

"At Orbitz, we currently use both JBoss Application Server and Red Hat Enterprise Linux. We believe the acquisition of JBoss and its integration with Red Hat will support our efforts to be more cost effective as we develop and deploy applications," said Chuck Clark, Director of Platform Technology, Orbitz. "We look forward to a more seamless integration of JBoss middleware components with Red Hat enterprise solutions."

Red Hat Outlines Enterprise Strategy

The combination of Red Hat's proven portfolio of enterprise infrastructure solutions and JBoss' standards-based middleware technologies will help accelerate the shift to SOA by making innovative, powerful solutions available to developers and customers seeking to lower development and deployment costs.

"The JBoss product portfolio is an excellent technology fit with Red Hat's current enterprise solutions," said Al Gillen, Research Vice President, System Software, IDC. "The combination of Red Hat and JBoss will drive further innovations for the open source ecosystem -- yet by maintaining JBoss as a division, JBoss customers aboard other platforms should see continuity with the JBoss products they use."

For more information on the acquisition of JBoss, please visit http://www.redhat.com/promo/jboss. To read Red Hat's partner support, please visit http://www.redhat.com/promo/jboss/partner.html. Red Hat will also discuss its enterprise strategy at JBoss World. For information on JBoss World and to learn how to attend, please visit http://www.jbossworld.com.

About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. The most trusted name in open source, CIOs and other senior-level IT executives have ranked Red Hat as the industry's most valued vendor for two consecutive years in the CIO Insight Magazine Vendor Value study. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com

Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the factors discussed in our most recent Quarterly Report on Form 10-Q filed with the SEC (a copy of which may be accessed through the SEC's website at http://www.sec.gov), 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 and the viability of the Internet. In addition, 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 the 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.