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Red Hat Urges Supreme Court to Address Impediments to Innovation Posed By Patents On Software

Files Amicus Brief Giving Open Source Perspective in <i>Alice Corp. v. CLS Bank</i> Case and Supports the Exclusion on Patenting Abstract Ideas

RALEIGH, N.C.

RALEIGH, N.C. – February 26, 2014 – Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced it has filed an amicus brief with the United States Supreme Court. The brief, filed in the case of Alice Corp. v. CLS Bank, asks the Supreme Court to find that its existing cases prohibiting the patenting of abstract ideas apply to software patents. Such a decision would mean a major course correction in patent law and the invalidation of large numbers of software patents.

The case concerns the validity of a patent relating to financial intermediation (that is, escrow arrangements) using computers. At issue is whether the patent is invalid because it amounts to the type of abstract idea that is excluded from patent eligibility. Red Hat argues that software patents like the one in this case are unpatentable, because at one level they are similar to abstract business method patents, and at another level amount to unpatentable algorithms.

Prior to the mid-1990s, software was generally considered unpatentable, but appeals court cases changed this understanding. The result was an explosion of software patents. They now number in the hundreds of thousands, and they cover abstract technology in vague and difficult-to-interpret terms. Because software products may involve thousands of arguably patentable components, developers face the risk of having to defend weak-but-costly patent infringement lawsuits. A new class of business enterprise, sometimes called patent trolls, has developed to file lawsuits to exploit this system.

The scope of patentable subject matter is an issue of critical importance to the future development of all software, including open source. The Supreme Court's CLS Bank decision could clarify the law and lessen the risks that innovation will be hindered by patents. Oral argument is scheduled for March 31, 2014.

Red Hat has consistently supported patent reform to address problems posed to innovation, including for open source and other software developers. To read the full amicus brief, visit redhat.com.

Supporting Quote

Rob Tiller, vice president and assistant general counsel, Red Hat

"Red Hat is committed to the free and open source software community, and this leads us naturally to seek reform in the law relating to software patents that would promote creativity and innovation. Software patents can have a perverse effect on software technology—they can hinder innovation rather than encouraging it. The CLS Bank case presents a great opportunity for the Supreme Court to address this problem."

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About Red Hat, Inc.

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 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 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.

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Red Hat, Inc.

John Terrill

571-421-8132

jterrill@redhat.com

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.