Red Hat global preferences

Press release

Red Hat Leads Global Linux Use in New Surveys

Market Share Reaches Over 70 Percent Worldwide According to Netcraft Web Server Survey; Preferred by Over 55 Percent in China According to Sky Events Survey

RALEIGH, N.C

Red Hat, Inc. (Nasdaq:RHAT), the leader in open source Internet infrastructure solutions, today announced the results of two surveys which show Red Hat's increasing lead in the global Linux market. These results confirm Red Hat's position as the most widely used and recognized provider of open source and Linux-based solutions.

"The Netcraft and Sky Events survey results highlight the synergy and benefits Red Hat's commitment to open source brings to the international community's growing IT sector," said Mark White, Vice President and General Manager, Red Hat Asia-Pacific. "Red Hat has worldwide brand recognition. The immense popularity of the Red Hat Linux solution in China shows tremendous momentum for Red Hat solutions and services in the Asia-Pacific market."

Netcraft survey shows 72 percent global market share for Red Hat

Netcraft's May 2000 Web Server Survey located almost 850,000 Web sites worldwide that run Linux and provide a personalized server header. Out of these sites, 72 percent run on Red Hat Linux, compared with 10 percent for the second largest distribution. Despite rapid growth in the Linux market and many new entrants, this survey shows that Red Hat has maintained its strong lead as the market's preferred brand. In addition, Netcraft's May survey shows the continued growth of Linux, which currently powers 36 percent of the Web sites polled, versus 33 percent in April. Netcraft's Web Server Survey can be found at http://www.netcraft.com/survey/.

"Red Hat is the Linux provider that has put the most effort into branding, product differentiation, and partnerships with Internet infrastructure companies," said Mike Prettejohn, Director, Netcraft. "In most countries of the world Red Hat Linux has become the leading version, while leading dedicated hosting companies such as rackspace.com and dn.net [Digital Nation] have Red Hat Linux as their standard install."

Red Hat leads Chinese Linux mind share, ranks first in stability and ease of use

According to a recent poll of Chinese IT professionals commissioned by Sky Events, Red Hat Linux is considered the best overall version of Linux by 56.3 percent of the respondents, more than three times the mind share of the second most popular distribution. In addition, Linux users in China name Red Hat as the most stable and the easiest to use version of Linux -- 55.8 percent and 43.9 percent, respectively. These results are particularly significant because of the large and fast-growing opportunity the Chinese market represents.

"As the commercial Linux market consolidates around Red Hat, it enables Red Hat to bring Linux to new markets that smaller companies simply cannot address," said Michael Tiemann, Red Hat CTO. "These new surveys should provide vital information to global companies looking to take advantage of the benefits that Red Hat Linux has to offer."

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

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.