Red Hat and Compaq Partner to Provide Worldwide Enterprise Support for Official Red Hat Linux Operating System

Durham

United States, June 8, 1999

Expanded Strategic Partnership and Full Support for Open Source Development Further Enhance Linux-based Operating Systems

Red Hat®, Inc. (NASDAQ: RHAT), the leading provider of open source Linux-based operating system (OS) solutions and Compaq Computer Corp. (NYSE: CPQ) today expanded their strategic partnership to provide call center support for enterprise users worldwide of the Official Red Hat Linux OS.

Under the agreement, Compaq's Customer Services organization, which serves hundreds of thousands of organizations in more than 100 countries worldwide, will escalate the most advanced support issues to Red Hat's services and support organization. As Compaq modifies and optimizes the Red Hat Linux OS during the support process, Red Hat will evaluate and test these changes, make them available in future revisions of the OS and deliver them freely to the entire open source community under the GNU General Public License (GPL).

"Compaq has one of the most powerful, worldwide call center support operations. This agreement combines Compaq's hardware and networking expertise and Red Hat's superior development expertise in open source software solutions," said Bob Young, chair and CEO of Red Hat, Inc. "At the same time, Compaq and its customers -- some of the most innovative users in the world -- will be contributing to the growth and development of Linux-based operating systems under the open source model. This is a perfect example of how commitments to open source by major software and hardware vendors like Compaq and Red Hat can further propel the benefits of Linux-based operating systems to enterprise organizations worldwide."

The agreement expands the relationship between Red Hat and Compaq, which included an equity investment earlier this year from Compaq and joint marketing, development and certification to maximize compatibility and interoperability with Compaq's Tru64 Unix OS and Alpha Server and Proliant server and workstations. More information on Red Hat's partnership with Compaq can be found on the Web at http://www.redhat.com/about/1999/press_compaq.html and http://www.redhat.com/about/1999/press_industryleaders.html.

"To support our customers ever-increasing deployment of Red Hat Linux into business critical environments, Compaq will introduce its suite of services for Red Hat Linux," said Peter Mercury, Vice President of Compaq Customer Services. "With this agreement, a key building block is in place for Compaq to support customers deploying Red Hat Linux in Internet, high performance technical computing and other applications where non stop availability is required. Additionally, joint support from Compaq and Red Hat Linux will eliminate many of the finger-pointing problems customers typically face between hardware and software vendors."

The financial terms of the agreement are not being disclosed by either company.

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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