Red Hat Announces First Enterprise-Class Linux Operating System

Red Hat Accelerates UNIX-to-LINUX Migration by Announcing the First Enterprise-Class Linux Operating System

Red Hat Linux Advanced Server Receives Unprecedented Enterprise Application Support; Oracle, VERITAS Software, and 20 other Top Independent Software Vendors Commit Application Availability

RALEIGH, NC, AND NEW YORK CITY—March 26, 2002—Red Hat, Inc. (Nasdaq: RHAT) today announced Red Hat Linux Advanced Server, the first enterprise-class Linux operating system. In addition, Red Hat will unveil unprecedented enterprise application support for Red Hat Linux Advanced Server at a partner and customer launch event today in New York City. Joining Red Hat at the launch are technology leaders Intel® Corporation, Oracle (Nasdaq: ORCL), VERITAS Software (Nasdaq: VRTS), as well as selected other customers from New York City's financial district.

Red Hat Linux Advanced Server products will enable large companies to accelerate their migration from costly, proprietary UNIX to far more cost-effective Linux running on Intel-based server systems. A recent total cost of ownership (TCO) analysis by IDC research showed that Linux reduces per-user costs by almost half in internet/intranet/extranet environments when compared to RISC/UNIX solutions. In collaborative computing these savings can exceed 75 percent. Red Hat Linux Advanced Server now brings this breakthrough TCO to database and application workloads that are common in large enterprises.

"The global enterprise IT market is looking for choice and hard -dollar savings. The low-cost / high value proposition of Red Hat Linux Advanced Server on Intel architecture delivers IT buyers the choice to receive performance without the lock-in and inflated costs of proprietary operating systems," said Paul Cormier, executive vice president of Engineering, Red Hat. " We've designed the new Red Hat Linux Advanced Server to provide software vendors with all the tools and capabilities they need so they can rapidly migrate their applications to an enterprise-class Linux environment. With enterprise application leaders such as Oracle, VERITAS, and many others involved, Red Hat Linux Advanced Server is the obvious choice for enterprises that want to break out of the stranglehold of proprietary operating systems and high-cost hardware."

"The combination of Intel-based servers with Red Hat Linux Advanced Server offers a compelling and robust platform option for enterprise computing," said Lisa Hambrick, director of enterprise processor marketing for Intel's Enterprise Platform Group. "Red Hat's effort exemplifies the broad choice, cost effectiveness and standards-based computing approach Intel-based solutions offer all-sized companies."

Red Hat Linux Advanced Server is the industry's first platform to deliver the full benefits of open source computing to the enterprise. Advanced Server and other future Enterprise Platform solutions from Red Hat combine software and value-added services to deliver the systems management, applications and security that enterprises need to efficiently migrate and manage thousands of servers.

Red Hat Linux Advanced Server Features and Support
Each copy of Red Hat Advanced Server will include a one-year subscription to Red Hat Network, for managed services, secure configuration, asset management and ongoing, centralized maintenance though a single, intuitive Web interface. In addition, the new Red Hat Linux Advanced Server offers:

Reliability with Red Hat's commitment to software quality, global, 24x7 support, long-term API consistency, and 12-18 month release cycles.
Availability with top performance, clustering, high-availability fail-over configurations and data integrity provisions through Red Hat Cluster Manager.
Scalability with asynchronous I/O, improved process scheduler and, support for up to eight-way SMPs.
Manageability with a Java-based Web console for cluster node management, automated security and performance updates from the Red Hat Network and Red Hat's full-scale life cycle services.

Additional technical details on Red Hat Linux Advanced Server and value-added services are available on Red Hat's Web site http://www.redhat.com/index.html.

Pricing and Availability
Red Hat Linux Advanced Server and integrated services are will be available in April from Red Hat, Inc. Pricing starts at $800 per server and up, based on the level of value-added services provided.

About Red Hat, Inc.
Red Hat is the world's premier open source and Linux provider. Red Hat is headquartered in Raleigh, N.C. and has offices worldwide. Please visit Red Hat on the Web at http://www.redhat.com/index.html. For investor inquiries, contact Gabriel Szulik at Red Hat, (919) 753-3700.

To obtain a copy of the IDC Total Cost of Ownership study, go to: http://www.redhat.com/whitepapers/.

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/.

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.

Technology Industry Leaders Commit Enterprise Support for Red Hat Linux Advanced Server

Widespread Industry Support for Red Hat Linux Advanced Server and Red Hat Enterprise Technology

NEW YORK CITY, NY—March 26, 2002—At a product launch and customer event today in New York City, Red Hat, Inc. (Nasdaq: RHAT), the world's premier open source and Linux provider, welcomed industry-wide support from key software leaders Oracle and VERITAS Software, along with top solution and hardware server platform providers Compaq Computer Corp. (NYSE: CPQ), Dell and IBM. Executives from Oracle and VERITAS Software participated in the New York City launch of Red Hat Linux Advanced Server. All of these technology leaders have agreed to ensure enterprise application availability, performance optimization and integrated technical support for Red Hat Linux Advanced Server.

"Our enterprise customers require the best-of-breed in technology solutions, and the support of these software and hardware leaders takes the Red Hat Linux platform to a higher level," said Mike Evans, vice president of business development with Red Hat. "The combination of technical leadership, hardware support and application availability for Red Hat Linux Advanced Server gives enterprises the stable, secure, comprehensive high-value solution that it needs to be competitive in the changing global economy."

"We are excited to be working closely with Red Hat and believe that this collaboration will set the foundation for providing a better and more efficient solution to our customers," said Doug Kennedy, vice president, Global Platform Partnerships at Oracle. The work we're doing together will help us to successfully meet the increasing customer demand for Oracle technology offerings running on the Red Hat Advanced Server platform."

"Today's announcement builds on VERITAS Software's offering of VERITAS Foundation Suite(tm), the proven industry-leading storage virtualization software product, on Red Hat Linux," said Kevin Reinis, vice president of strategic and platform alliances, VERITAS Software. "VERITAS Software joins Red Hat and other key technology leaders to deliver the first enterprise-class storage solutions to an eager marketplace."

Red Hat Linux Advanced Server is the industry's first ISV-supported platform to deliver the full benefits of open source to the enterprise. Advanced Server and other future enterprise platform solutions combine the software and value-added managed services that deliver the management, application and security offerings enterprises need to efficiently migrate and manage thousands of servers across the enterprise. Red Hat Linux Advanced Server will be supported by the world's top enterprise software and hardware vendors, offering enterprise customers a new series of infrastructure solutions with tremendous price, performance and total-cost-ownership benefits for organizations migrating from expensive, proprietary UNIX platforms to Red Hat Linux on Intel hardware.

Red Hat Linux Advanced Server Supported by Key Partnerships
The new Red Hat Linux Advanced Server (see related release, March 26, 2002) has been met with strong support from the leading hardware and software vendors.

Compaq
"Customers want to deploy their enterprise applications on industry-standard platforms that offer superior performance and manageability, while reducing the total cost of ownership," said Judy Chavis, director of the Compaq Corporate Linux Program Office. "The combination of optimized Compaq ProLiant servers-- the world's leading server in Linux shipments*-- and Red Hat Linux Advanced Server delivers on these customer demands with the powerful hardware and software customers require for critical server deployments. Combined with our proven leadership and commitment to providing world-class Linux support and services, Compaq and Red Hat offer customers a winning solution for running Linux in the enterprise." (*International Data Corporation, Quarterly Server Tracker, Published 3/8/2002).

Dell
"Dell was one of the early supporters of Red Hat's efforts in the enterprise, and we've led the market in meeting customer's demands for Linux-based file/print, general-purpose and Web-serving applications," said Russ Holt, vice president and general manager of Dell's Enterprise Systems Group. "Our enterprise customers are now turning to Red Hat Linux on Dell PowerEdge servers to meet their mission-critical business computing needs, including high-performance computing and database applications. We are committed to working with Red Hat to deliver the performance, value and reliability that comes with providing Red Hat Linux Advanced Server software on our Intel architecture-based servers."

IBM
"IBM and Red Hat are recognized leaders in the rapid enterprise adoption of Linux," said Richard Michos, vice president and business line executive, IBM eServer xSeries Linux. "IBM has worked closely with Red Hat to ensure that Red Hat's new Linux Advanced Server exploits IBM's Enterprise X-Architecture features, delivered in our latest generation of industry-leading Intel servers, the x360 and x440. The combination of Red Hat Linux, IBM eServer and our broad portfolio of Linux-enabled software, will satisfy the most demanding needs for mission critical solutions for enterprise customers. Red Hat's new offering includes Java technology from IBM, which provides a foundation for Web Services applications running on Linux."

Pricing and Availability
Red Hat Linux Advanced Server and integrated services are available in April from Red Hat, Inc. Pricing starts at $800 per server and up, based on the level of value-added services provided.

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