RESEARCH TRIANGLE PARK, N.C.—April 16, 2001—Red Hat, Inc. (Nasdaq: RHAT), the leader in developing, deploying and managing open source solutions, announced today the availability of Red Hat Linux 7.1, the latest version of the world's most popular open source server operating environment. Red Hat Linux 7.1 includes the new 2.4 kernel with improved SMP support for superior performance on Intel multi-processor platforms. Red Hat Linux 7.1 also delivers new configuration tools that enable users to effortlessly set up and administer DNS, Web and print servers. This release features Red Hat Network connectivity, including software manager.

``Red Hat Linux is firmly embedded in today's computing infrastructure. The release of Red Hat Linux 7.1 and the first in a series of Red Hat Network subscription services makes it easy for organizations to quickly realize the benefits of open source computing," said Matthew Szulik, CEO of Red Hat, Inc. ``The elements of Red Hat Linux 7.1 work together to deliver the most powerful, automated open source operating system for fast-growing enterprise and Internet infrastructure users.''

According to IDC Research, Linux is the second fastest growing server operating system (from 1999-2000).

• 2.4 Kernel positions Red Hat Linux as an enterprise class operating system. Provides significantly improved multiprocessor support and support for 4GB userland process, eliminates PCI bus limit, makes virtual memory effectively limitless, supports 64 GB of physical RAM, supports greater number of users and groups, includes revised scheduler to handle more processes, carries increased and improved device support, as well as an improved multi-threaded network stack.

• Red Hat Network Software Manager delivers errata alerts so users are automatically notified of new errata and RPM updates that provide notification of new RPM packages.

• Heightened Security delivers secure default settings that keeps ports closed and Internet utilities inactive until needed. A new firewall screen enables user to turn on or off as many features as desired for totally customized security.

• Configuration tools make system administration easier than ever with BIND (DNS), Apache and Print tool.

• Installer enhancements improve the user experience by providing a graphical Kickstart configuration tool for unattended installation and a new install class for laptop users.

• Increased internationalization supports global user communities with a fully translated GNOME interface in Japanese, Spanish, French, German and Italian.

• Desktop Functionality includes updated GNOME & KDE, popular graphical environments where users can choose their preferred desktop, and Mozilla, a Web browser, email client and news reader that provides a complete open source web and messaging client.

• XFree86 4.0.3 interface supports 2D and 3D graphics.

• USB support for "hot pluggable" devices

• New 200-page Customization Guide

• TUX - world's fastest web server¹

For a complete list of new features, visit http://www.redhat.com/products/software/linux/rhl_new_features.html.

Widespread Industry Adoption
Red Hat has partnered with industry leaders to provide its customers with the best solutions for Internet computing. Dell and IBM, leaders in the hardware space, continue to embrace Red Hat Linux.

"Dell continues to see growing demand for powerful servers, workstations and notebook computers running Red Hat Linux backed with Red Hat's industry-leading support," said Rick Hoffman, director and general manager of Linux Development, Dell Enterprise Systems Group. "Red Hat Linux 7.1 offers our enterprise customers with the scalability, performance and power they have been waiting for in their Linux-based infrastructures. Our direct model and global factory install process will allow us to be one of the first major systems manufacturers to ship Red Hat Linux 7.1 directly to customers -- with no middleman required."

"With the scalability enhancements in the new 2.4 kernel, Red Hat is delivering the most robust version of Linux to date," said Dick Sullivan, vice president, Solutions and Integration Marketing, IBM Software. "When coupled with the proven enterprise capability of IBM's server and software products, including DB2 Universal Database, WebSphere Application Server, Lotus Domino, and the xSeries eServer running Red Hat Linux 7.1 today, customers and solution providers should see an increase in overall performance to complement Linux's cost and reliability advantages."

• Standard: 30 days web-based support and 30 days Red Hat Network Software Manager for 1 system. Pricing: $39.95.

• Deluxe: 60 days of Red Hat Network Software Manager for up to 5 systems and 60 days of telephone and web support. Pricing: $79.95.

• Professional: 90 days of Red Hat Network Software Manager for up to 10 systems and 90 days of telephone and Web support. Red Hat Linux 7.1 Professional also includes support for Software RAID Configuration and Apache and BIND configuration. Pricing: $179.95.

All versions are available for order immediately from redhat.com and through retail outlets worldwide beginning April 24.

Red Hat's comprehensive services and support organization round out an enterprise solution that delivers the tools and performance necessary to translate the promise of open source into high-value, scalable Internet infrastructure implementations.

About Red Hat, Inc.
Red Hat is the leader in developing, deploying and managing solutions built on the benefits of an open source platform. These solutions include an open source product platform for devices to mainframes, a complete end to end set of Professional Services, and the Red Hat Network as the Internet-based backbone for deployment and management of the products and services. Red Hat's open source platform includes the award-winning Red Hat Linux operating system platform, the Interchange e-Commerce platform, Stronghold Secure Web Server, Credit Card Verification software, High Availability Server, GNU-based developer toolkit for embedded development, and embedded run-time Linux, eCOS, and RedBoot solutions.

Red Hat backs up their open source offerings with end-to-end services that include Red Hat Professional Consulting focused on multiplatfom infrastructure and engineering services, Red Hat Engineering services for software development and porting of the operating system and for embedded platforms and devices, Red Hat Enterprise support services for installation services and web and telephone support, and Red Hat Learning services for Linux certification (RHCE) and courses for Apache, Embedded systems, Advanced Developer, and e-Commerce. Red Hat Network provides Red Hat's unique managed services capability to deploy and manage open source products, services, support and management information on-line in real-time to more cost effectively and reliably maintain open source based solutions.

Red Hat is headquartered in Research Triangle Park, N.C. and has offices worldwide. Please visit Red Hat on the Web at www.redhat.com. For investor inquiries, contact Gabriel Szulik at Red Hat, 919-547-0012.

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, Red Hat's dependence on the continued development of the Linux kernel and the contributions of key individuals within the Linux community who are not associated with Red Hat; 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.