Red Hat Expands Linux Kernel Development Group

RESEARCH TRIANGLE PARK, N.C.—February 1, 2000—Red Hat®, Inc. (NASDAQ: RHAT), the leading provider of open source solutions, announced today that it has expanded its Kernel Development Group -- continuing to fuel the rapid advancement of the Linux OS for solutions ranging from powerful Internet servers to the next-generation Internet appliances and devices.

"Red Hat is the leading source of Linux and open source expertise and is entirely dedicated to the worldwide, community development of the Linux operating system," said Michael Tiemann, CTO of Red Hat, Inc. "Our Kernel Development Group works with thousands of users, application developers and enthusiasts worldwide every day to enhance the Linux operating system and meet changing end user needs."

The work done by the Red Hat Kernel Development Group is submitted to Linus Torvalds, the creator of Linux and head of Linux kernel development, for inclusion in the Linux kernel. An enhanced Linux kernel, the basis for the Linux operating system, is distributed freely over the Internet under the GNU General Public License (GPL). Red Hat builds and packages the Red Hat Linux operating system, which includes top applications and services to enterprise users worldwide.

"Red Hat has always had a strong kernel group, and I'm happy that they continue to make it stronger," said Torvalds.

The Red Hat Kernel Development Group

The expanded kernel development group is just one of Red Hat's many contributions to the open source community and development cycle. Red Hat is also engaged in the Trillian Project, a server and workstation industry open source collaboration that is porting Intel's forthcoming Itanium processor to Linux. As part of the Trillian Project, Red Hat is porting the GNUPro Toolkit (gcc, g++, gdb) and GNOME to IA-64, and including the IA-64 port in forthcoming editions of Red Hat Linux. In addition, Red Hat recently held a clustering technology summit, is a longtime contributor to the Mozilla project and created the Red Hat Center for Open Source, a non-profit organization that is a catalyst for the advancement of the social principles of open source.

Open Source Momentum
International Data Corp. (IDC) research states that Linux-based operating systems were the fastest-growing server operating environment in 1998, growing more than 190 percent in that year alone and capturing more than 15.8 percent of the 4.4 million revenue shipment server operating environment market. 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 Compaq®, Computer Associates, Corel, Dell, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle® and SAP®. Red Hat Linux runs on Intel, Alpha and Sun SPARC platforms.

About Red Hat, Inc.
Founded in 1994, Red Hat (NASDAQ: RHAT) is the market leader in open source operating system (OS) software, services and information, spanning powerful enterprise and Internet servers to next-generation devices and pervasive computing platforms. Along with its award-winning open source Red Hat Linux OS, Red Hat offers a full line of services, including telephone support, on-site consulting, developer training, certification programs and priority access updates, making Red Hat a leading resource for knowledgeable, innovative, mission-critical open source solutions.

Red Hat develops and shares all of its software innovations freely with the open source community under the GNU General Public License (GPL) and other public licenses. The Official Red Hat Linux OS and related services are available directly from the company and through its partner, distributor and reseller programs, which include top PC and server manufacturers such as Compaq, Dell, Gateway, IBM, Hewlett-Packard and Silicon Graphics.

Red Hat and the Official Red Hat Linux OS have received substantial industry praise. Recent accolades include: Red Herring's Top 100 Companies of the Electronic Economy, Network World's 10 Companies to Watch, Federal Computer Week's Government Best Buy, Software Development's Jolt Award, Information Week's Product of the Year, an Upside Hot 100 Company and E-biz Winner, and InfoWorld's Product of the Year four years in a row. Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. Visit Red Hat on the Web at http://www.redhat.com/. For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

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, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, and statements regarding the strategy and plans of Red Hat and its strategic partners, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, risks associated with Red Hat's dependence upon an open source business model, reliance upon independent third-party Linux developers, management of growth, reliance upon strategic relationships, 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, year 2000 compliance efforts of Red Hat and of third parties on which Red Hat depends, 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/.

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