RED HAT SUPPORTS THE COMPLETE IBM eSERVER LINE FOR THE NEXT PHASE OF E-BUSINESS

Raleigh

United States, October 9, 2000

Red Hat is the First Linux Developer to Offer Complete Package of IBM Software, and eServer Line, Along With Services, for Linux.

Red Hat Europe (NASDAQ: RHAT), the leader in
developing, deploying and managing open source Internet infrastructure,
today announced its support of IBM's new eServer*, the next generation
of servers created to handle the unparalleled demands of e-business.


IBM's newly introduced eServer line is built around open standards and
features mainframe-class reliability and scalability while providing
capacity on demand to meet the intense requirements of today's
high-speed networks.


With this announcement, Red Hat Linux will run on the entire IBM eServer
line and all of IBM's Linux-enabled software, providing customers
application flexibility across a variety of platforms from large
enterprises to small businesses.


Red Hat and IBM entered an agreement in August 2000 (``IBM and Red Hat
Collaborate to Deliver e-business Software Solutions for Linux'') to
jointly market, distribute and support bundled IBM, Lotus, Tivoli and
Red Hat software offerings. For more information and availability of
these offerings, please see
www.europe.redhat.com/products/software.php3.


``With the eServer launch just last week, it's exciting to see the
entire line embraced by Red Hat - the industry-leading Linux
developer,'' said Erich Clementi, Vice President, Enterprise Systems
Group, IBM EMEA. ``Red Hat clearly understands the demands placed on
companies implementing e-business on Linux and can now offer customers
support across highly scaleable server and middleware lines delivering
an integrated solution for the smallest business to the largest
enterprise.''


The IBM eServer family is designed for serious e-business -- where
customers need 24x7 reliability and security. The new line combines
IBM's best server assets, including years of expertise in developing
servers and the software that works best on them, with an
industry-leading commitment to deliver what customers need to make their
e-infrastructure work for the next phase of e-business.


``IBM and Red Hat have a strong relationship that dates back to the
early days of our company and has expanded several times, and we see
this announcement as reinforcing IBM's commitment to Linux and to Red
Hat," said Colin Tenwick, vice president, Red Hat EMEA ``The fact that
Red Hat Linux supports the entire eServer line demonstrates the
scalability, reliability and power of our offering. With Red Hat Linux
and the IBM eServer line, IBM customers will have the best possible
foundation on which to build their Internet infrastructure.''


Red Hat Linux will be supported on the complete IBM eServer Line, which
includes:
- IBM eServer zSeries: most reliable, mission-critical data and
transaction server on earth.
- IBM eServer pSeries: most powerful, technologically advanced UNIX
server.
- IBM eServer iSeries: high performance, integrated business server for
mid-market companies.
-IBM eServer xSeries: affordable, Linux-ready, Intel-based servers with
mainframe-inspired reliability technologies.
In addition, Red Hat is making available today, via their Web site
(www.europe.redhat.com/products/software.php3), the following IBM
middleware:
- Red Hat Linux and IBM DB2 Universal Database
- Red Hat Linux and IBM WebSphere Application Server
- Red Hat Linux and Lotus Domino
- Red Hat Linux and IBM Small Business Pack for Linux
Open Source Momentum
International Data Corp. (IDC) research states that paid Linux shipments
grew faster than any other server operating system over the past two
years, and their preliminary figures for 1999 show Linux shipments hold
24.6 percent of the server operating system market, up from 15.8 in
1998. IDC also states that Red Hat holds 50.2 percent of Linux vendor
market share and that Red Hat Linux is by far the most popular
distribution, preferred by 68.7 percent of U.S. Linux users.


Research firm Netcraft, Inc. (www.netcraft.com), states that as of May 2000, 30 percent of all public Web sites run on Linux-based operating
systems, making Linux the most popular choice for deploying public Web
sites. IDC research shows 40 percent of all spending on Linux servers is
for Internet related applications, firmly entrenching Linux servers in
the Internet infrastructure.


Finally, IDC predicts that by 2002, there will be more than 55 million
handheld and notebook-style information appliance devices and that by
2005, shipments of these appliances will exceed shipments of PCs.


Red Hat's numerous alliances with industry leaders and the demand for
Linux-based applications has created open source support from many of
the industry's leading software and hardware manufacturers, including
Dell, Compaq, Computer Associates, Hewlett-Packard, IBM, Intel,
Netscape, Novell, Oracle and SAP.


# # #


*The IBM eServer brand consists of the established IBM e-business logo
with the following descriptive term "server" following it. The IBM
e-business logo, xSeries, iSeries and zSeries are all trademarks of IBM
Corporation.

 


Red Hat, Inc.


Founded in 1994, Red Hat (Nasdaq:RHAT), is the leader in development,
deployment and management of Linux and open source solutions for
Internet infrastructure ranging from small embedded devices to high
availability clusters and secure web servers. In addition to the
award-winning Red Hat Linux server operating system, Red Hat is the
principle provider of GNU-based developer tools and support solutions
for a wide variety of embedded processors. Red Hat provides run-time
solutions, developer tools, Linux kernel expertise and offers support
and engineering services to organizations in all embedded and Linux
markets.


Red Hat applies its technological leadership to create open source
solutions for all points on the Internet and in pervasive computing
environments, offers services backed by the best understanding of open
widely trusted open source leader and corporate partner. Red Hat offers
users one single, trusted point of contact and a common platform for
developing, deploying and managing open source across the Internet and
devices that connect to the Internet.


Red Hat Europe was established in July 1999 with its European
headquarters based in Surrey, United Kingdom and offices throughout
Europe. Red Hat Linux is sold and supported through a number of major
distribution and industry partners throughout Europe and from
www.europe.redhat.com/shop


Red Hat Linux was named InfoWorld's Product of the Year for four years
in a row, was given a productivity accolade in Software
Development's Jolt Awards, was named an environment/desktop finalist in
the Ziff-Davis European Excellence Awards, won the editor's
choice awards from the Linux Journal and Australian Personal Computing
magazines, and won the `Just Plain Cool' award from Australian
Personal Computing magazine. At March's LinuxWorld Expo, more than 8,000
members of the Linux community voted Red Hat a
`LinuxWorld Favourite'. Red Hat Linux recently won a Product Excellence
award from Software Development Magazine.


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.

 


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, product plans and
performance, the ability to continue to develop the Linux kernel and
other software, reliance upon strategic relationships, Red Hat's
dependence upon an open source business model, reliance upon independent
third-party Linux developers, management of growth, expansion of Red
Hat's business focus and operations, the possibility of undetected
software errors, the enforceability of the GNU General Public License
and other licenses under which Red Hat's products are developed and
licensed, the scarcity of Linux-based applications, 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 www.sec.gov

 

* Indicates trademark or registered trademark of Linus Torvalds.


** Indicates trademark or registered trademark of Red Hat, Inc.


*** Indicates trademark or registered trademark of IBM Corporation
and/or its subsidiaries.