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Press release

JBoss Positioned in Leaders Quadrant in Prestigious Enterprise Application Servers Magic Quadrant

RALEIGH, N.C

JBoss, a division of Red Hat (NASDAQ: RHAT), today announced that Gartner, Inc. has positioned JBoss in the Leaders Quadrant in the 2Q06 Enterprise Application Servers Magic Quadrant⊃1;. According to Gartner, vendors listed in the Leaders Quadrant are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.

"We believe our position in the Leaders Quadrant confirms our model of building great software, distributing it under an open source license, and backing it up with high-value subscription services," said Marc Fleury, senior vice president and general manager of the JBoss Division, Red Hat. "It's a simple formula that is disrupting the software business and ultimately delivers greater value to our enterprise customers. This vision, backed by our proven ability to execute, is driving mass adoption of JBoss as a foundation for service-oriented architecture and Web 2.0 applications."

Gartner noted, "Vendors that are strong in the record of their execution and their ability to follow and influence the market are labeled 'market leaders'." Vendors were evaluated on their ability to execute, which reflects the staying power and record of execution of vendors in the market, and the completeness of vision, which reflects the vendors' ability to understand the market trends, influence them, and follow them with agility and consistency.

With over eight million downloads, the JBoss Application Server is the centerpiece of the JBoss Enterprise Middleware Suite (JEMS), the leading open source platform for service-oriented architecture (SOA). JEMS offers a pluggable architecture that allows enterprises to use as much or as little of the platform with room to expand as their business needs grow. For more information about JEMS, visit /products/jbossenterprisemiddleware/

About the Magic Quadrant

The Magic Quadrant is copyrighted August 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leader" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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.

1 "Magic Quadrant for Enterprise Application Servers, 2Q06"; Yefim V. Natis, Massimo Pezzini, Kimihiko Iijima and Michael Barnes; Gartner, Inc.; August 4, 2006.

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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.