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Red Hat and Wind River Partner to Develop Linux Based Solution for Device Software Optimization

* Industry leaders partner to jointly develop a new Linux distribution * Alliance extends market opportunities * Red Hat Embedded Linux with Wind River will enable device software optimization

RALEIGH, N.C.

Red Hat is the leading commercial open source Linux company and supports the largest Linux distribution with Red Hat Enterprise Linux. Wind River is the market share leader in commercial device software optimization with its proprietary real-time operating system, VxWorksâ„¢, and VxWorks-based Wind River Platforms. By building Wind River Platforms based on jointly developed Wind River and Red Hat technology, customers will have access to the most widely deployed Linux technology that is fully embraced by the open source community. For the first time, developers will be able to standardize device software development across the enterprise with VxWorks, Linux or both.

"Wind River and Red Hat are creating an end-to-end software infrastructure, based on open source and commercial technology for carrier grade network equipment such as high-end routers and switches," said Ken Klein, chairman, chief executive officer and president of Wind River. "This partnership opens up new markets for Wind River, and by working with Red Hat, we can enable the same kind of standardization for the device software market that Red Hat has successfully established for enterprise Linux. It was important for us to enter into a relationship with Red Hat because of their global dominance in the Linux market."

Under the terms of the agreement, the new Linux distribution will be jointly developed by a team of engineers from both companies that will work out of Red HatÂâeuro™s engineering facilities in Westford, Massachusetts. Wind River will be the premier channel for Red Hat Embedded Linux which will initially be targeted at the commercial off-the-shelf (COTS) segment of the device software market, for carrier grade network equipment such as high-end routers and switches.

"Red Hat's alliance with Wind River will bring open standards to the embedded device market," said Matthew Szulik, Red Hat President and CEO. "Red Hat's Open Source Architecture strategy centers on a common Linux code base to enable better application compatibility, security and maintainability from embedded devices to enterprise servers. The combination of Red Hat and Wind River as leaders in our respective markets will advance the device software marketplace."

"Previous attempts at creating a commercial Linux distribution for device software have resulted in a fragmented marketplace that still lacks a standard set of tools and reliable products," said Bill Claybrook, vice president of Linux strategy at Harvard Research Group. "The Wind River and Red Hat partnership provides the complete package -- technology, support and expertise -- that will enable Linux to become firmly established as a viable and standardized option for device development."

If you are interested in learning more about the Wind River / Red Hat Embedded Linux platform, please visit http://www.windriver.com/announces/02232004d.html.

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.

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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.