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Red Hat First Open Source Total Solution Provider for Internet Appliances with the Combination of Red Hat Network Services and the Ability to Design and Deploy Complete Embedded Linux Platforms

Operating System, Tools and Management Expertise on Common Code Base Makes Red Hat the First Open Source Provider of End-to-End Solutions

RALEIGH, N.C

Red Hat®, Inc. (NASDAQ: RHAT), the leader in developing, deploying and managing open source Internet infrastructure solutions, announced today at the Embedded Systems Conference 2000 that the launch of Red Hat Network earlier this week will bring users of Internet appliances and embedded systems running Red Hat Linux a reliable, fast source for new services and device maintenance in the field. Red Hat Network (see related releaseSept. 25) is a powerful Internet-based service for deploying and managing open source platforms. With developers, operators and OEM's looking to deploy complete Internet ready and Internet managed devices that can be maintained and upgraded with certified applications via the Internet, Red Hat is the only open source provider with the ability to meet this demand.

Working with key semiconductor providers, original equipment manufactures (OEM's) and operators, Red Hat is focused on bringing to market embedded platforms that are deployed and managed with customizable and scalable Internet-based services that improve the reliability, security and performance of Internet-connected appliances.

"Red Hat is the only open source provider with the ability to connect the entire spectrum of the Internet--from handheld to devices to secure web servers--and we can deliver and manage this via Red Hat Network with a consistent set of API's and common code base to create seamless connectivity throughout our end-to-end solution," said Matthew Szulik, president and CEO, Red Hat. "We believe that we are redefining relationships for developers of Internet-connected devices by helping them manage and deploy the rapid innovation of open source from the smallest to the largest of devices."

With this complete capability, Internet appliance manufacturers can offer the service providers a total solution. Through Red Hat Network, Internet appliances are easy to maintain and provide ongoing, increasing value to consumers through remote system configuration and upgradeability, delivery of new services and content, and certification of applications and content.

Red Hat continues to work on open source technologies, such as the latest embedded Red Hat GNU development tools, that are made freely available to developers through redhat.com. Red Hat will continue to define the key platforms that customers require, including GNU development tools, software applications, network protocols, and standards together with support for the lead semiconductor architectures that will be used. Additionally, Red Hat will focus on providing key segment areas such as cable modems, xDSL modems, gateway devices, web-pads and terminals, set-top-boxes, interactive TV's, automotive smart terminals with value-added services through the Red Hat Network. These devices and platforms will be built from a common Red Hat Linux code base.

Red Hat has over 10 years of solid experience in testing, releasing, and maintaining leading edge open source products and platforms based on a single source base for Linux and GNU. No other company has this depth and breadth of experience in the open source market.

Additionally, Red Hat recently announced Engineering Services activity including Ericsson, Hitachi, iObjects, NetSilicon, Samsung, and Scenix.

Red Hat will be featuring embedded Linux, EL/IX, and RedBoot demonstrations in its booth at Embedded Systems Conference 2000. In addition, there will be demonstrations and displays of customer and partner successes with Red Hat's embedded solutions. These include products by ANT, Birdstep, Brother, Ericsson, iObjects, Indrema, Jabber, NetSilicon, and Sony.

For more information on Red Hat's embedded activities, please see http://www.redhat.com/embedded.

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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

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Forward-Looking Statements

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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.