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Intel, Netscape, Greylock and Benchmark Partners Take Equity Positions in Red Hat Software

Red Hat Establishes Enterprise Computing Division for Its Linux OS

Research Triangle Park

Today at ISPCON Fall '98, Red Hat, Inc. , a leading distributor of the Linux operating system, announced that Intel, Netscape Communications Corporation and venture capital firms Greylock and Benchmark Partners have taken minority equity positions in the company. Red Hat builds, maintains and provides technical support for the Red Hat Linux operating system. Linux runs on Intel, Alpha and Sun SPARC platforms. Financial terms of the agreement were not disclosed.

Additionally, the firm announced it is establishing an Enterprise Computing Division, according to Red Hat president, Robert F. Young. The new division will offer enterprise grade products and services to support global, mission-critical applications. "As the growing number of users demonstrates, the Linux operating system is ready for enterprise-wide applications," Young said. "Red Hat intends to further extend its Linux leadership into the enterprise."

"Today's announcement reaffirms Netscape's commitment to Linux as a strategic enterprise-ready platform," said John Paul, senior vice president and general manager of the Server Products Division at Netscape. "Netscape's customers are demanding a manageable, scalable and reliable Internet operating system for deploying the applications required in the net economy. Customers are finding that Linux provides the manageability, scalability and reliability they require."

"Our investment in Red Hat demonstrates the technological value of the open source development model for technologies such as operating systems," stated William S. Kaiser, general partner at Greylock. "They have done a great job of supporting the open source development model and delivering the benefits of that model to a growing number of Linux users."

"Since July, the five leading providers of database software Oracle, Informix, Computer Associates, Sybase and IBM have all announced plans to support Red Hat Linux OS," stated Red Hat's Young. "We believe that their OS strategies, combined with today's announced investments, continue to fuel the adoption of Linux as a robust and secure operating system."

Red Hat, Inc. , based in Research Triangle Park, N.C., is a software development company that sells products and provides services related to Linux. Red Hat's mission is to provide professional tools to computing professionals. The company manufactures shrinkwrapped software versions of the Linux operating system, making it accessible to the broadest possible range of computer users. The company works with development groups around the world via the Internet to review, package and develop Linux-based tools, making them useful for computing professionals. The company builds tools that are released as freely reusable software available for unrestricted use. Red Hat additionally publishes books and software applications and provides technical support. Visit Red Hat on the web at http://www.redhat.com/.

About Linux

Linux is the freely distributable, cooperatively-developed POSIX-based, multi-user, multi-tasking operating system used worldwide. Linux is used as a high value, fully-functional UNIX workstation for applications ranging from Internet Servers to reliable workgroup computing.

Common with UNIX footnote

LINUX is a trademark of Linus Torvalds. Red Hat is a registered trademark of Red Hat, Inc. UNIX is a registered trademark of The Open Group. All other names and trademarks are the property of their respective owners.

Acerca de 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.

Declaraciones prospectivas

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.