Penguin Computing to Ship Systems with Red Hat Linux 7, Latest Version of Industry-Leading Distribution of Linux

Company Also Introduces Dual-Processor 1U Server With Two Hot-Swap Hard Drives

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 25, 2000--Penguin Computing Inc., leading provider of reliable Linux systems for Internet serving, announced today that it will begin offering Red Hat(R) (Nasdaq:RHAT) Linux 7 on its systems.

The latest version of the industry-leading distribution of Linux offers users greater security and manageability, enhancing Linux as a platform for the enterprise.

Red Hat Linux 7, to be released tomorrow, includes OpenSSL, the Open Source SSL protocol for sending secure information over the Internet, MySQL, the widely used Open Source database, and also includes enhanced 3D support. In addition, the new version of Red Hat Linux is preset for the arrival of the 2.4 kernel.

"These significant improvements further strengthen Linux, for the network serving and desktop computing," said Sam Ockman, Penguin Computing's chairman and chief executive officer. "These enhancements to Red Hat Linux, along with our highly reliable enterprise-class computing systems and top-notch service and support, make now a better time than ever to select Penguin Computing's systems -- all of which are optimized for Red Hat Linux -- to power your Internet and enterprise computing network."

The release of Red Hat Linux 7 coincides with the availability of Penguin Computing's latest systems, the Relion(TM) 120 series of dual-processor 1U rackmount servers. The new servers, designed for uses where space is at a premium, pack power into a small format.

Relion 120 servers come with up to two Intel Corp. Pentium III FCPGA Coppermine processors running at 733-933 MHz with 256 KB of integrated L2 cache and 133 MHz FSB. They also have up to 2 GB of memory, two hot-swappable hard drives with optional RAID, integrated Ultra 160 SCSI controller, slim CD-ROM and 3.5-inch floppy drive.

Pricing and Availability

Penguin Computing systems with Red Hat Linux 7 (standard version) are currently available to select customers and will be generally available in mid-October 2000. The Relion 120 series is generally available. Relion 120 pricing is dependent on configuration options selected; customers should check the Penguin Computing Web site (www.penguincomputing.com) for pricing.

About Penguin Computing

Penguin Computing Inc.(http://www.penguincomputing.com) is the leading provider of reliable Linux systems for Internet serving. Founded in 1998 by Open Source advocate and active Linux community member Sam Ockman, Penguin Computing is based in San Francisco, Calif., (USA) and is privately held.

Linux, an Open Source version of UNIX, is increasingly popular as an operating system for server computers. Industry research analysts have predicted that the market for Linux servers will reach $5.7 billion by 2003.

(c)Penguin Computing Inc. 2000. All rights reserved. Penguin Computing is a registered trademark of Penguin Computing Inc. Linux is a registered trademark of Linus Torvalds. All other trademarks are the property of their respective holders.

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