Red Hat, Inc. Establishes Red Hat Center For Open Source

Industry Luminaries Join Center's Board of Directors to ``Advance the Social Principles of Open Source for the Greater Good''

DURHAM, N.C. - November 1, 1999 - Red Hat, Inc. (NASDAQ:RHAT) announced today the formation of a new non-profit organization, the Red Hat Center for Open Source (RHCOS), that will sponsor, support, promote and engage in a wide range of scientific and educational projects intended to advance the social principles of open source for the greater good of the general public. Led by an impressive group of influential leaders with backgrounds in technology, law, business and research, RHCOS will foster projects that advance the philosophy of open source, through which collaborative intellectual pursuits produce results to be freely shared and enhanced throughout society. Red Hat, Inc. co-founder and Chief Technology Officer Marc Ewing will devote considerable time and effort to the new organization as a Founding Director.

"The open source software movement has been successful because it has provided unprecedented control and quality to users, and at the same time enabled a model for cooperative development of technology that leveraged the expertise of the global community," said Ewing. "The implications of this model when applied outside of software development are enormous, and the benefits to society will be huge. Advancing this global cooperative model for the development of technologies and ideas is what RHCOS is all about."

``We have formed RHCOS because we believe that the philosophy and practice of open development can benefit many other parts of society,'' said Bob Young, co-founder, CEO and Chairman of Red Hat, Inc. and also a Founding Director of the RHCOS. ``Today, much advanced research and intellectual pursuit is funded by private industry for proprietary purposes. The time is right to introduce an approach that will seed new advances and foster innovation for everyone's benefit.'' In addition to Ewing and Young, the Board of Directors for RHCOS includes well-known innovators and thought leaders. Board members include:

RHCOS will initially be funded with $8 million in a combination of cash and Red Hat common stock donated by Red Hat, Inc. and three founding investors of Red Hat: Young; Ewing; and Frank Batten, Chief Executive Officer of Landmark Communications. Details regarding grant criteria and the application process are currently being determined by the Board of Directors and will be released at a later date.

About Red Hat, Inc.
Founded in 1994, Red Hat (Nasdaq: RHAT) is a market leader in open source operating system (OS) software, services and information. 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 shares all of its software innovations freely with the open source community under the GNU General Public License (GPL). 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 industry praise. Recent accolades include: Red Herring's Top 100 Companies of the Electronic Economy, Upside's Hot 100 Companies, Network World's 10 Companies to Watch, Federal Computer Week's Government Best Buy, Software Development's Jolt Award and InfoWorld's Product of the Year for three years in a row. Red Hat was also voted a ``LinuxWorld Favorite'' by the attendees of the two most recent LinuxWorld Expos, winning Best Server Distribution at the August show.

Red Hat is based in Durham, N.C. and has offices worldwide. Visit Red Hat on the Web at For investor inquiries, please contact Lippert/Heilshorn at (212) 838-3777.

About the Red Hat Center for Open Source
The Red Hat Center for Open Source is an independent, non-profit organization that works to advance the social principles of open source for the greater good. RHCOS serves as a funding source and incubator for projects developed under the open source philosophy - freely sharing intellectual value for the good of society. Headquartered in Durham, N.C. , RHCOS provides society with a counterbalance to restricted, proprietary practices in technology, research, law, health and sciences. For more information, see or email

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 the Company and its strategic partners, constitute forward-looking statements. These forward-looking statements are not guarantees of the Company's future performance and are subject to a number of risks and uncertainties that could cause the Company's actual results in the future materially to differ from the forward-looking statements. These risks and uncertainties include, without limitation, risks associated with the Company's ability to successfully shift its business model to a model built upon subscription-based product offerings, the Company's ability to attract new enterprise customers and to meet their needs by expanding and enhancing its service offerings, the need to continually enhance the Company's Web site and the ability to generate significant revenues from it, challenges associated with the Company's domestic and international expansion, the Company's ability to enter into new and retain existing strategic alliances with technology leaders, the continuing need for an increasing number of Linux-based enterprise applications, the Company's dependence upon an open source business model, reliance upon independent third-party Linux developers, management of growth, expansion of the Company's business focus, the possibility of undetected software errors, the enforceability of the GNU General Public License and other licenses under which the Company's products are developed and licensed, the risks of economic downturns generally, and in the Company's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, year 2000 compliance efforts of the Company and of third parties on which the Company depends, and other risks detailed in the Company's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at

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.