Red Hat global preferences

Press release

Red Hat Escalates Reseller Channel Efforts With Expanded Distribution Partnerships and New Easy Access Reseller Kits

Comprehensive Channel Solutions to Help Resellers Easily Jump into Fast-growing Open Source Opportunities

Research Triangle Park

"KeyLink Systems is focused on offering value-added services to its partners," said Bob Bailey, senior vice president of Pioneer's Computer Systems Division. "Red Hat's new Reseller Starter Kits enable us to offer our resellers a high-quality reseller program at a reasonable price."

"Red Hat fills a critical role in the value-added distribution space," said Ray Fischer, Executive Vice President and General Manager of Hall-Mark Global Solutions Services division.

"By providing Linux software to our North America customer base of leading value-added resellers, we are helping to improve our customer's business opportunities."

"In addition to an aggressive margin structure, today's resellers are looking for excellent support and on-going training and solutions designed specifically for their unique needs," said Teresa Spangler, Business Unit Leader Sales, Red Hat, Inc. "We have designed a program to deliver these services to Red Hat resellers and their customers."

Program details

The Red Hat Reseller Starter Kit enables the reseller to join the first level of the company's channel program and includes the necessary products to get the reseller up and running. Red Hat Reseller Starter Kits have pricing options available from $500 to $5,000.

For resellers who prefer a more significant partnership with Red Hat, there are three starter kits tailored to their businesses; System Builder Starter Kit, System Integrator Starter Kit and Application Provider Starter Kit. Resellers who purchase one of these kits join the second level of the program and are named a Red Hat Certified Reseller.

"Red Hat's reseller program offers its resellers and their customers a wide variety of choices that allow them to take full advantage of the momentum of the open source movement," said Curt Tueffert, VP Sales, Team Red Hat, Jones Business Systems, Inc. "Red Hat's Starter Kits provide the pricing, product and support that enable us to tailor open source solutions to meet our customers' individual needs."

"More and more resellers and integrators are looking for a quick, competitive entry into the growing Linux market," said Maria Johnston, vice president of software product marketing, Tech Data. "By providing a turnkey package, Red Hat's Starter Kits will assist resellers in accelerating their open source efforts."

Red Hat Reseller Starter Kits are currently available from Red Hat distributors in the U.S. and Canada. More information on Red Hat's Reseller Programs can be found at www.redhat.com/resellers.

Open source momentum

International Data Corp. (IDC) research states that Linux was the fastest-growing server operating environment in 1998, growing more than 190 percent in that year alone and capturing more than 15.8 percent of the 4.4 million revenue shipment server operating systems market. Additionally, IDC states that Red Hat Linux is by far the most popular Linux-based operating system, preferred by 68.7 percent of U.S. Linux users.

Red Hat's numerous alliances with industry leaders and the demand for Linux-based applications has created open source support from many of the industry's leading software and hardware manufacturers, including Compaq®, Computer Associates, Corel, Dell, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle® and SAP®. Red Hat Linux runs on Intel, Alpha and Sun SPARC platforms.

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

Forward-Looking Statements

Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, 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, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.

LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.

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.