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Press release

Red Hat Enterprise Momentum Continues to Accelerate

Since debut of Red Hat Linux Advanced Server in May, Red Hat's enterprise appeal has flourished with the support of key partners.

Linuxworld

"Red Hat's Advanced Server operating system was an important milestone in providing customers with a mature and stable enterprise Linux platform that they can use as a replacement for propriety Unix platforms," said Linda Hargrove, vice president of worldwide marketing at Dell. "The Dell and Red Hat One Source alliance has been critical in developing platforms that use open standards-based technologies to be highly-available, high-performing and significantly less expensive than RISC-based architectures. We expect this momentum to continue in 2003."

"IBM has been able to extend its position as the world's leading server vendor with the strong adoption of Linux on our Intel based servers," said Rich Michos, vice president of Linux servers, IBM. "We are seeing more and more customers choose Red Hat Linux Advanced Server on IBM xSeries systems to help with real e-business solutions."

"Intel processor-based systems running Red Hat Linux Advanced Server provide compelling price/performance and industry standard benefits for enterprises," said Deborah S. Conrad, vice president & general manager, Solutions Market Development Group, Intel Corporation "The momentum away from proprietary hardware platforms is strong as evidenced by the number of Unix developers that are porting their applications to the Intel Itanium 2 processor on Linux platform."

In September, 2002, Red Hat announced the availability of Red Hat Linux Advanced Workstation exclusively on Intel® Itanium® 2 processor-based HP workstations -- the HP Workstation zx2000 and HP Workstation zx6000. The solution delivers fast compute performance for scientists, engineers and others running high-floating point applications that require a large memory bandwidth and memory latency.

"HP's partnering with Red Hat supports our commitment to bring cost effective, high-performance Linux-based solutions to the enterprise," said Judy Chavis, Worldwide Linux Director, HP Industry Standard Servers. "The momentum we have experienced with Red Hat Linux Advanced Workstation on HP's Itanium 2 based workstations and our recent TPC-C benchmark on Oracle 9i applications on industry-standard HP ProLiant servers running Red Hat Linux Advanced Server demonstrate the range of proven applications available today for Linux."

As Advanced Server momentum has flourished, key industry applications vendor have made software available on the Red Hat enterprise platform. BEA, Computer Associates, IBM, Legato, Oracle and VERITAS have all recently migrated applications to Linux.

"BEA is working closely with Red Hat to enable customers to deploy enterprise-class Java applications on Linux with the BEA WebLogic Enterprise Platform and BEA WebLogic JRockit," said Bob Griswold, vice president and general manager, Java Runtime Products Group, BEA Systems, Inc. "With Red Hat Linux Advanced Server and BEA WebLogic, customers can now deploy Java solutions on a broad range of Intel servers."

"Over the last year, Oracle and Red Hat have collaborated on numerous technology enhancements and published several leading performance benchmarks to bring Linux to the next level, said Doug Kennedy, vice president Platform Alliances, System Platforms Division, Oracle Corp. Oracle provides an unmatched breadth of enterprise-class offerings on Red Hat Linux Advanced Server, including infrastructure and enterprise applications software, seamless technical support and consulting services. We anticipate Linux adoption will continue to grow, and Oracle and Red Hat will continue to lead in meeting customer requirements."

At LinuxWorld, NY Red Hat will present about the future of their enterprise platform and showcase enterprise-class solutions with customers and partners. For more information visit http://www.redhat.com.

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.

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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.