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Press release

IBM and Red Hat Announce Alliance for Linux

IBM and Red Hat Announce Alliance for Enterprise Solutions on Linux

Research Triangle Park

Red Hat® Software, Inc. announced today that it has entered an alliance with IBM to deliver, via IBM Business Partners, high-performance IBM systems running Official Red Hat Linux.

IBM and Red Hat will work collaboratively to optimize IBM personal system hardware for running Red Hat Linux, providing customers with powerful and reliable enterprise and e-business solutions on the Red Hat Linux platform. Both companies will work together to provide enterprise-level technical support and will conduct joint marketing to enterprise customers. As a first demonstration of high performing e-business solutions based on Red Hat Linux and IBM hardware, several high traffic Red Hat web sites will be powered by the award winning Netfinity line of servers.

Under the agreement, a development lab will be established to maximize performance, reliability, and security for Red Hat Linux on IBM server and client systems, including Netfinity servers, PC 300 Commercial Desktops, IntelliStations, and ThinkPads. In addition to contributing developer expertise, Red Hat will also perform hardware certification testing and provide dedicated customer training.

"IBM has long been the leader in powerful, reliable computing solutions," said Bob Young, CEO, Red Hat Software. "This is an important milestone in the rapidly growing acceptance of Linux."

More than 10 million users currently run the Linux operating system. According to IDC Research, Linux was the fastest-growing server operating environment in 1998, capturing more than 17 percent of all server operating system shipments. A new survey in Linuxworld showed that 74 percent of those polled cite Red Hat as the most recognized Linux vendor.

"Our customers are asking for Linux solutions," said Bill McCracken, general manager of marketing and strategy, IBM Personal Systems Group. "The Red Hat alliance demonstrates IBM's commitment to the open-source movement and to provide our customers with an unmatched range of platforms, operating systems, solutions and services."

"The Linux community has faced a number of real and imagined barriers to its acceptance within the enterprise; IBM is helping Red Hat to break some of those barriers down," said Bill Peterson, Research Manager at IDC. "One of the barriers to Linux in the enterprise is the availability of technical support. IBM's support organization is legendary within the industry and IDC believes that with this announcement the technical support argument against Linux in the enterprise becomes moot. Red Hat is already the leader in commercial Linux shipments and through its numerous recently announced partnerships further solidifies itself as one the top choices for enterprise Linux computing."

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About Linux

Linux is the freely distributable, cooperatively-developed POSIX-based, multi-user, multi-tasking operating system used worldwide. Linux is used as a high value, fully-functional UNIX workstation for applications ranging from Internet Servers to reliable workgroup computing.

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

Common with UNIX footnote

LINUX is a trademark of Linus Torvalds. Red Hat is a registered trademark of Red Hat, Inc. UNIX is a registered trademark of The Open Group. 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.