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Red Hat Completes Cygnus and HKS Acquisitions To Create Global Open Source Powerhouse

Combines Internet, Server, and Post-PC Technology Leaders for a Complete Solution Spanning Powerful Servers, Internet Software and Handheld Devices

Raleigh, NC

Red Hat®, Inc. (Nasdaq: RHAT), the market leader in open source solutions, announced the completion of the acquisitions of privately-held Cygnus Solutions and Hell's Kitchen Systems, Inc. (HKS). The Cygnus transaction, to be accounted for as a pooling of interest, was completed in a stock-for-stock merger in which Red Hat issued up to 6,624,344 shares for all outstanding securities of Cygnus. Red Hat will issue up to 398,335 shares for all the outstanding shares of HKS in a transaction to be accounted for under the purchase method of accounting. Matthew Szulik, the president and CEO of Red Hat, leads the combined companies.

"The addition of Cygnus and HKS to the Red Hat family creates a next-generation software company for the 21st century, spanning powerful servers, Internet infrastructure and pervasive, post-PC-centric computing platforms," said Matthew Szulik, president and CEO of Red Hat, Inc. "Red Hat is now positioned as a complete worldwide source for companies rapidly creating and deploying Linux and open source applications for servers and small devices."

The acquisitions make Red Hat, Inc. the largest company in the world dedicated to providing open source technology, information and services, offering the full spectrum of open source software and support âeuro” from enterprise server and e-commerce deployments to embedded and handheld platforms. End users worldwide benefit from the companies' combined, unmatched technical expertise and a wide-array of industry partnerships with major computing vendors like Compaq, Dell, IBM, Intel and Hewlett-Packard to support their rapidly-growing adoption of open source solutions. The combined entity remains committed to serving the customers of each company.

For more information on Cygnus and HKS, visit www.redhat.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. 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.