Red Hat Completes Repurchase of Convertible Debentures

Raleigh

United States, January 15, 2009

Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced that it has completed the repurchase of $285.0 million aggregate principal amount of its 0.50% Convertible Senior Debentures due 2024 (the "Debentures"). Pursuant to the terms of the Indenture, dated as of January 12, 2004, between Red Hat and U.S. Bank Trust N.A. as trustee (the "Indenture"), Red Hat paid from its existing cash balances a purchase price in cash equal to 100% of the principal amount of the Debentures plus accrued and unpaid interest to January 15, 2009. Following this repurchase, which was made at the demand of the holders pursuant to the terms of the Indenture, Debentures with an aggregate face amount of only $0.5 million remain outstanding. This transaction reduces the fully diluted share count by approximately 11 million shares.

About Red Hat, Inc.

Red Hat, the world's leading open source solutions provider, is headquartered in Raleigh, NC with over 65 offices spanning the globe. CIOs ranked Red Hat first for value in Enterprise Software for four consecutive years in the CIO Insight Magazine Vendor Value survey. Red Hat provides high-quality, affordable technology with its operating system platform, Red Hat Enterprise Linux, together with applications, management and Services Oriented Architecture (SOA) solutions, including JBoss Enterprise Middleware. Red Hat also offers support, training and consulting services to its customers worldwide. Learn more: 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 the integration of acquisitions; the ability of the Company to effectively compete; 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; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company's growth and international operations; adverse results in litigation; 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 conditions, and governmental and public policy changes. 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.