Rackspace First European Red Hat Advanced Hosting Partner

Munich

United States, November 19, 2004

Red Hat and Rackspace extend relationship to over 6000 servers

Red Hat, Inc. (Nasdaq:RHAT), the world's leading provider of open source solutions to the enterprise, today announced that Rackspace has become the first Red Hat Advanced Hosting Partner in Europe. An existing Red Hat customer, the extended relationship has seen Rackspace deploy Red Hat Enterprise Linux on more than 6,000 servers, making it one of Red Hat's largest customers worldwide.


"Since the outset, Rackspace has seen significant demand for Linux as an operating system platform," explains Dominic Monkhouse, Managing Director at Rackspace Managed Hosting. "Red Hat delivers the support we need in order to provide our customers with the service they expect from us. The extension of our relationship with Red Hat allows us to guarantee failure free availability of our Linux servers. This, coupled with the fact that no other provider can offer such a wide range of certified applications, means we have decided to standardise our Linux platforms on Red Hat ."


For Rackspace, the need to efficiently manage an infrastructure of 6,000 servers is critical to providing secure 24x7 availability of services to its customers. For this reason, Rackspace especially benefits from the Red Hat Network functionality of the operating system platform. In order to keep its Red Hat infrastructure updated, managed, and provisioned, Rackspace uses all Red Hat Network modules. By using the kick-start function of the Red Hat Network provisioning module, the hosting provider is able to install specially configured servers for its customers at short notice.


Rackspace is the first European Advanced Partner within the recently announced Red Hat Hosting Partner Program. This program supports hosting providers with a customised pricing model and additional services, which help them to guarantee their clients 24x7 operations. With complete confidence in Red Hat, Rackspace has committed itself to building extensive internal Linux expertise. No other company outside of the USA, aside from Red Hat itself, employs more Red Hat Certified Engineers than Rackspace. Globally, only the US government employs more Red Hat Certified Engineers than Rackspace.


"Our partnership with Rackspace has evolved over the years - both companies have grown rapidly together," comments Werner Knoblich, Director EMEA at Red Hat. "Rackspace's early adoption and support of Linux has been conducive in making open source software an attractive platform for enterprises. Together we have successfully shaped the past. For the future we expect similarly great achievements."


About Rackspace Managed Hosting Europe


Founded in 1998 with locations in Europe and the USA, Rackspace Managed Hosting provides its award winning managed hosting services and unique brand of customer service, Fanatical Support(TM), to a broad range of enterprises. Focusing exclusively on managed hosting, Rackspace supplies the necessary infrastructure - servers, software, bandwidth and management - needed to run almost any hosted solution.
The company's philosophy of Fanatical Support(TM) has made Rackspace one of the fastest growing companies in the world. The last twelve months was Rackspace Managed Hosting Europe's best yet, with a turnover growth of 140% and the average revenue per customer going up by 33%, it now has more than 1,200 customers.
Rackspace has received numerous industry awards for its Fanatical Support(TM) including most recently the prestigious Small Business Award from the Unisys Customer Service Excellence Awards. For more information, visit www.rackspace.co.uk.


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


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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