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Press release

HP and Red Hat Expand Relationship To Offer Customers New Linux Options

Enterprise Customers Now Have HP as Single Source for Linux Hardware and Software Support

Palo Alto

Under the terms of the agreement, HP becomes a global services provider for the entire Red Hat Enterprise Linux line of certified solutions, which includes Red Hat Enterprise Linux AS, Enterprise Linux ES and Enterprise Linux WS. The new agreement also details further collaboration between the two companies across their respective global services organizations.

"The new agreement between Red Hat and HP marks an important step in helping to further Linux in the enterprise," said Al Gillen, senior analyst, IDC. "The combination of world-class support and industry-standard hardware with the price and performance advantages of Linux will appeal to enterprise customers."

The worldwide leader in Linux server shipments(1), HP will support the Red Hat Enterprise Linux family of solutions on both 32-bit Intel® architecture and Itanium® platforms. HP is working to integrate Linux solutions with services by offering customers greater flexibility and single-point-of-contact service-level agreements.

"HP is expanding its relationship with Red Hat to bring enterprise-class functionality and global support to Linux. Today's announcement builds on our $2 billion in Linux-based revenue in 2002 and our decade of commitment to the open source and Linux communities," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "HP is the single source for all Linux hardware and software support for customers."

Last week, Red Hat announced Red Hat Enterprise Linux ES, which is designed for edge-of-network and departmental server applications such as network, file, print, mail and Web serving. This new product complements the family of Enterprise Linux products, which consists of Red Hat Enterprise Linux AS, for high-end server deployments, and Red Hat Enterprise Linux WS, for workstation deployments.

"Red Hat is pleased to be working with HP on this integrated approach to delivering Red Hat Enterprise Linux solutions," said Mike Evans, vice president of channel sales and development, Red Hat. "Enterprise customers will benefit from increased flexibility and the price and performance advantage of the Red Hat Enterprise Linux platform on reliable and scalable HP hardware."

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at .

(1) IDC Worldwide Quarterly Server Tracker, Q4CY2002, February 2003. IDC uses price ranges to differentiate servers into entry-level (up to $100,000), midrange ($100,000-$1 million) and high-end ($1 million and above).

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

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.