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Square D Chooses Red Hat to Help Create Internet-Based Power Management Solution Running Embedded Linux

POWERLOGIC with Embedded Linux at the Forefront of Next-generation Power Monitoring and Metering Solutions

RALEIGH, N.C

Red Hat (NASDAQ: RHAT), a leader in developing, deploying and managing open source Internet infrastructure, today announced that it is working with Square D Company to design next generation, Internet-based power management solutions built on Red Hat Embedded Linux.

Much like the Internet experience empowers individual investors to quickly make informed decisions, Internet-based power management arms corporations with the tools and information necessary to deal with deregulation in the electrical power industry. In addition to the standard metering required of plant engineers, the new Square D POWERLOGIC system using Red Hat Embedded Linux can collect and deliver critical information to accounting, purchasing and resource management systems. The POWERLOGIC system also features an intuitive graphical user interface that lets users quickly collect, analyze and respond to power management conditions.

"Reliability was a key factor in our decision to use embedded Linux in our POWERLOGIC thin server devices -- electricity is a critical factor of production that cannot be taken for granted," said Andy Foerster, product marketing manager of Square D, which is based in LaVergne, TN. "Teaming with Red Hat, the industry leader, delivers us the open source expertise necessary to deploy new technology rapidly and efficiently to our customers."

Working with key semiconductor providers, original equipment manufacturers (OEM's) and operators, Red Hat is focused on bringing to market embedded platforms that are deployed and managed with customizable and scalable Internet-based services that improve the reliability, security and performance of Internet-connected appliances.

"Our partnership with Square D demonstrates the growth, power and ubiquity of Red Hat Linux solutions." said Paul McNamara, VP, Products and Platforms for Red Hat. "Today, Red Hat Linux is capable of providing a complete end-to-end solution required in uniting remote devices with centralized computers."

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About Square D

Located in LaVergne, Tenn., the Power Management Organization was created within Square D in 1989 to develop, design and market power monitoring and control systems and analytical services. The Power Management Organization offers a full range of products and services, including power monitoring hardware and software, lighting control hardware and software and a variety of engineering services.

Square D is a leading manufacturer and supplier of electrical distribution, automation and industrial control products, systems and services and is a key business of Schneider North America -- one of four geographic entities of Schneider Electric, headquartered in Paris, France. The company's four master brands -- Square D, Telemecanique, Merlin Gerin and Modicon -- are available from distributors around the world.

The full line of electrical distribution equipment includes circuit breakers, load centers, panelboards, switchboards, low and medium voltage switchgear, unit substations, transformers, safety switches, busway and wire management and power monitoring equipment. Services include equipment maintenance and repair as well as maintenance contracts and power management services.

For more information on POWERLOGIC products call 800-392-8781. Or visit the Square D POWERLOGIC web site at www.powerlogic.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

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