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Press release

Red Hat Enterprise Linux 5 Beta 2 Now Available

Latest beta of Red Hat's enterprise platform shows progress in areas of virtualization and performance.

RALEIGH, N.C

Red Hat (NASDAQ: RHAT), the world's leading provider of open source solutions, today announced the availability of Red Hat Enterprise Linux 5 Beta 2. Red Hat Enterprise Linux 5, to be released in early 2007, will provide the latest open source technologies for improved performance, security and flexibility. With a continued focus on technologies designed to drive costs out of deploying and managing infrastructure software, Red Hat Enterprise Linux 5 will deliver comprehensive integration that will significantly raise the bar for commercial-strength Linux virtualization in an x86 server environment.

Red Hat Enterprise Linux 5, now available in Beta 2, incorporates a new, fully integrated server and storage virtualization solution. This release enables an integrated virtualization solution by coupling server virtualization with Red Hat's clustering support. For enhanced availability, failover at either the application or virtual machine level is provided by Red Hat Cluster Suite. Red Hat Global File System and Cluster Logical Volume Manager technology allows application data to be securely accessed and shared by any guest from any system.

"The incorporation of virtualization technologies into operating system software is a major industry development that will have long term impact on how customers design their computer infrastructure, how they deploy, and how they plan for scalability, availability and continuity," said Al Gillen, Research VP, System Software at IDC. "Red Hat's approach of integrating virtualization software and clustering technology together with file system software gives Red Hat Enterprise Linux 5 the capability to go beyond basic server consolidation, and empowers users to address more sophisticated virtualization requirements."

Red Hat Enterprise Linux 5 represents the result of nearly two years of development spread across the entire core product, and Linux kernel enhancements accrued from version 2.6.9 to 2.6.18. Extensive enhancements to the kernel, network and I/O subsystems ensure optimal performance and scalability. Users will realize unmatched resistance to security exploits through the inclusion of comprehensive security profiles and improved compiler and runtime buffer management technologies.

Additionally, Red Hat Enterprise Linux 5 presents dramatically improved desktop capabilities and new application development tools that make working in a Red Hat Enterprise Linux environment better than ever.

"The release of Red Hat Enterprise Linux 5 Beta 2 is a great indicator for customers on what to expect in our next release. Integrating technologies such as virtualization is challenging and exciting, and the resulting product will enable customers to utilize their systems more effectively than ever before," said Tim Yeaton, Senior Vice President of Enterprise Solutions, Red Hat. "We continue to drive down costs by optimizing performance, manageability and availability. Other customer-driven innovations, such as security, are inherent to our development model."

Customers and partners can now download Red Hat Enterprise Linux Beta 2 to deploy pilots for production environments. To learn more, please 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

Any statements in this press release about future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the factors discussed in our most recent Quarterly Report on Form 10-Q filed with the SEC (a copy of which may be accessed through the SEC's website at http://www.sec.gov), 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 and the viability of the Internet. In addition, 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 the press release.

LINUX is a trademark of Linus Torvalds. RED HAT and JBOSS are registered trademarks of Red Hat, Inc. and its subsidiaries in the US and other countries.

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.