Red Hat Unveils Program to Accelerate Adoption of Open Source

Durham, N.C. - November 3, 1999 -- Red Hat®, Inc. (NASDAQ:RHAT), the leading developer and provider of open source software solutions, today announced an expansion of its services program that will provide the consulting and support enterprise organizations need for nearly all of the popular, powerful, open source software applications used by enterprises worldwide.

As the first step in the program, Red Hat's worldwide services group will immediately offer expanded Service Programs for popular open source software solutions, including top Internet software like the Apache Web Server, Sendmail and Postfix. Apache is the number one Web server and runs more than 55 percent of the Internet's Web sites. Sendmail is a messaging solution that powers 80 percent of Internet Service Providers (ISPs).

The sweeping initiative will expand in the coming months, embracing more open source solutions. This broad support program delivers enterprise users a single, trusted source for their open source computing needs.

``Some of the world's largest organizations leverage Red Hat's superior Linux support, training and consulting programs to deliver open source solutions for Internet, point-of-sale and high-availability applications, including Burlington Coat Factory, Compaq and IBM,'' said Bob Young, Chairman and CEO of Red Hat, Inc. ``The move to deliver Red Hat's trusted expertise to support virtually all things open source helps accelerate the adoption of powerful open source technology throughout the enterprise.''

"Red Hat's decision to support additional open source applications is a true win for our clients," said Ken Farber, senior vice president World Wide Alliances, Computer Associates International Inc. (CA). "By providing support to other open source applications, we have the opportunity to extend the partnership to yet another level. CA and Red Hat will continue to work closely together to incorporate new technologies, offering our clients best of breed solutions, as we have with Red Hat Linux and Unicenter TNG®."

This expansion of open source support continues Red Hat's long-standing support of the open source community and open source development. With the release of Red Hat Linux 6.1, the company began offering configuration support for the Apache Web Server. Most recently, Red Hat announced the formation of a new, non-profit organization, the Red Hat Center for Open Source, that will fund a wide range of projects and initiatives intended to advance the social principles of open source for the greater good of society. Led by an impressive group of influential leaders from technology, law, business and research, the organization will foster projects that advance the philosophy of open source.

Pricing and Availability
A variety of support packs are available, ranging from installation and per-call, per-incident packages to full 24x7 enterprise support and onsite consulting and training programs. For a complete overview of the available support programs, visit Red Hat's Web site at http://www.redhat.com/products/support_solutions.html.

Open Source Momentum
International Data Corp. (IDC) research states that Linux was 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 systems market segment. Additionally, IDC states that Red Hat Linux is by far the most popular distribution, preferred by 68.7 percent of U.S. Linux users. 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®.

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. 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 http://www.redhat.com/. For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

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.

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/.