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Press release

Red Hat Announces Enterprise Software Products and Support

Research Triangle Park

New Software Products

Red Hat is adding to its award-winning line of software products with two new enterprise products: The Official Red Hat Linux 5.2 System Builder Edition and the Official Red Hat Linux 5.2 Commercial Server Edition.

The System Builder Edition product is designed for resellers who are pre-installing Red Hat Linux operating system on server-class computers for enterprise accounts. It includes Red Hat Linux 5.2 software and documentation.

The Commercial Server Edition product, also designed to be delivered pre-installed, includes all of the features of the System Builder Edition, plus a 90 day support package that gives the enterprise user 24 x 7 support out of the box for Red Hat Linux.

New Support Products

In response to unprecedented demand for commercial-strength, technical support for Linux, Red Hat is introducing new corporate support products that, among other benefits, integrate with the new software products to provide "24 x 7" support for enterprise-wide, mission-critical Red Hat Linux systems.

The new support products include: Red Hat Technical Support Incident Packages and Red Hat Technical Support Annual Subscriptions. Red Hat Technical Support Incident Packages are available in 10 and 25 incident packs. Technical Support Annual Subscriptions are available in two levels, Platinum being the highest, featuring unlimited incidents and 24 x 7 availability. (Call center support goes live early January 1999.)

The System Builder Edition and the Commercial Server Edition will be available for purchase in late December 1998. The support products will be available for purchase in early January 1999. All products will be available for Red Hat Authorized Resellers through Red Hat's distribution partners.

New Reseller Programs

As part of the new enterprise software and support strategy, Red Hat also announces new Red Hat Authorized Reseller Programs. These programs are designed to enable channel partners to build successful enterprise accounts and business lines around systems and solutions based on Red Hat's enterprise software and support products.

The new Red Hat Authorized Reseller Programs will include a specific program for system builders who focus primarily on building servers and systems for enterprises, bundled with support; and a tiered program for value added resellers who focus primarily on consulting and delivery of custom solutions and configurations to enterprises, with or without system sales.

These channel programs will feature various levels of co-marketing and co-branding; access to Red Hat's new Red Hat Certified Installer and Red Hat Certified Engineer training and certification classes (regularly scheduled classes for reseller partners and customers start in February 1999); as well as other co-marketing and incentive programs.

"These new products and channel programs offer enterprise customers the support they've asked for through the channels they know. With the addition of our new training and certification offerings, as well as our new professional services, we are also giving our authorized resellers the programs, services and products they need to build a thriving business around Red Hat Linux," according to Paul McNamara, Red Hat's Vice President of Enterprise Computing.

About Linux

Linux is the cooperatively developed POSIX-oriented, multi-user, multi-tasking operating system used world wide. Linux is used as an exceptional value, fully functional UNIX workstation for Internet servers and other applications. Red Hat Linux is maintained as "freely distributable" software available from many sites on the Internet.

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.