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Date: Mon, 25 Sep 2000 13:00:22 -0400
From: Greg Smith <gsmith@schwartz-pr.com>
To: <lwn@lwn.net>
Subject: Red Hat Launches Red Hat Network


FOR IMMEDIATE RELEASE:

For more information:
Melissa London					Dave Close or Bryan Scanlon
Red Hat, Inc.					   Schwartz Communications for Red Hat
(919) 547-0012					 (781) 684-0770
melissa@redhat.com			     redhat@schwartz-pr.com


RED HAT LAUNCHES RED HAT NETWORK TO EXTEND THE REACH OF
OPEN SOURCE TECHNOLOGY BY DRAMATICALLY REDUCING THE
COSTS OF DEPLOYMENT AND MANAGEMENT

New Internet-based Service Addresses Global IT Labor Shortage with
Customizable, Scalable Services that Improve the Reliability, Security and
Performance of Internet Platforms

RESEARCH TRIANGLE PARK, N.C.--September 25, 2000--Red Hat®, Inc.  (NASDAQ:
RHAT), the leader in developing, deploying and managing open source
Internet infrastructure solutions, today announced Red Hat Network, a
powerful Internet-based service for deploying and managing open source
platforms. Customizable preferences for security alerts, update management,
and technical support improve system administrator productivity and enhance
the security, reliability and performance of networked systems. The service
reduces total costs and speeds time to value for customers.

Red Hat is announcing a 60-day free trial of Red Hat Network for all Red
Hat Linux 7 users. In addition, basic functionality will be available at no
charge for all Red Hat Linux users. For further details and registration
information, please visit www.redhat.com/network.

"Red Hat Network is the future of software--an integrated set of technology
and services that speed the deployment and reduce the costs of management
for Internet infrastructure," said Paul McNamara, vice president of
products and platforms at Red Hat. "Red Hat Network simplifies deployment
and delivers proactive services to keep systems secure and reliable. By
managing the constant stream of open source innovations through redhat.com,
customers get maximum value from the open source development model."

"The high costs of skilled IT professionals can limit the promise of the
Internet," said Billy Marshall, director of Red Hat Network. "I anticipate
that Red Hat Network will double the productivity of system administration
staff by providing a scalable, flexible solution for deploying and managing
open source platforms. Enterprises, service providers, small businesses,
and Internet appliance developers can now take maximum advantage of open
source technology because Red Hat Network dramatically reduces the ongoing
management costs of the rapid innovation model."

Red Hat is working with several significant key technology providers to
maximize the value of Red Hat Network.

"eDirectory was designed with exactly this sort of deployment in mind -
delivering large- scale customized services over the Internet," commented
Eric Schmidt, chairman and CEO, Novell. "Providing the management
infrastructure for Red Hat Network is an excellent example of our stated
goal - to provide Net services software that secures and powers all types
of networks across all leading operating systems."

"AT&T is proud that Red Hat chose AT&T for our high-performing,
highly reliable hosting services and our fast, dependable IP connectivity
services," said Sandy Brown, hosting vice president of AT&T Data and
Internet Services. "Red Hat Network clients will benefit from the best of
two premier Internet companies for open source network and service
support."

Red Hat Network Capabilities

Red Hat Network technology will be a part of all of Red Hat’s service
offerings beginning in December, 2000. The features of Red Hat Network to
be included with these offerings are:

--customizable update management services to keep systems secured and
  functioning during rapid open source development cycles

--security evaluation, notification and analysis services to help system
  administrators maintain the security of their networks

--Web-based management interface for portability and remote management

--tight integration with RPM to assure system software compatibility by
  automatically managing dependencies

--support services from experts in the open source community and from Red
  Hat for maximum productivity and speed of problem resolution

Red Hat Network brings benefits to a wide range of users. Enterprise IT
organizations will be more productive because they have a connection to Red
Hat for technology, expertise and services. They can update functions,
assure quality and security and automate mundane system management
tasks. Service providers can offer enhanced services and functionality to
their customers through a managed deployment of Red Hat Linux that is
secure, consistent and easily managed.

Users of Internet appliances and embedded systems running Red Hat Linux
will have a reliable, fast source for new services and device maintenance
in the field. Small businesses will take advantage of the cost and
reliability benefits of Red Hat Linux without hiring expensive, full-time
system management experts.

Red Hat Network Free Trial Services

Red Hat Network capabilities available during the free trial period include:

--update management service to keep systems secure and functional during
  rapid Internet discovery and development cycles

--integrated registration program with Red Hat Linux 7

--customizable preferences for notification of security issues, bug fixes
  and functional enhancements from Red Hat

--Web-based management interface for ease-of-use and application portability

--summary on-line status reports of registered systems

--support forums from experts in the open source community and at Red Hat
  for maximum productivity and speed of problem resolution

Pricing and Availability of Red Hat Network

Red Hat Network is available to all Red Hat Linux 7 users beginning
September 26, with functionality to be added for Red Hat Linux 6.2 users
soon. Beginning in December 2000, Red Hat Network features will be
integrated with all of Red Hat’s service offerings. All Red Hat Linux
users will be able to access certain levels of Red Hat Network for free,
and greater levels of service will be available for customers of Red
Hat’s service offerings.

For the individual, proactive subscription services for information and
technology updates will be available for as little at $9.95 per
month. Small businesses will be able to receive Red Hat Network features as
part of an integrated technical support offering, with prices beginning in
the range of $400 per year per system. For large Red Hat Linux deployments
within Enterprises and Service Providers, Red Hat will offer service
packages that feature Red Hat Network and options for 24x7 technical
support, Technical Account Owners, and broad systems management capability
from $500 per system annually.

Open Source Momentum

International Data Corp. (IDC) research states that paid Linux shipments
grew faster than any other server operating system over the past two years,
and their preliminary figures for 1999 show Linux shipments hold 24.6
percent of the server operating system market, up from 15.8 in 1998. IDC
also states that Red Hat holds 50.2 percent of Linux vendor market share
and that Red Hat Linux is by far the most popular distribution, preferred
by 68.7 percent of U.S. Linux users.

Research firm Netcraft, Inc. (www.netcraft.com), states that as of May
2000, 30 percent of all public Web sites run on Linux-based operating
systems, making Linux the most popular choice for deploying public Web
sites. IDC research shows 40 percent of all spending on Linux servers is
for Internet related applications, firmly entrenching Linux servers in the
Internet infrastructure.

Finally, IDC predicts that by 2002, there will be more than 55 million
handheld and notebook-style information appliance devices and that by 2005,
shipments of these appliances will exceed shipments of PCs.

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 Dell,
Compaq, Computer Associates, Hewlett-Packard, IBM, Intel, Netscape, Novell,
Oracle and SAP.

About Red Hat, Inc.

Founded in 1994, Red Hat (Nasdaq:RHAT), is the leader in development,
deployment and management of Linux and open source solutions for Internet
infrastructure ranging from small embedded devices to high availability
clusters and secure Web servers. In addition to the award-winning Red Hat
Linux server operating system, Red Hat is the principle provider of
GNU-based developer tools and support solutions for a wide variety of
embedded processors. Red Hat provides run-time solutions, developer tools,
Linux kernel expertise and offers support and engineering services to
organizations in all embedded and Linux markets.

Red Hat applies its technological leadership to create open source
solutions for all points on the Internet and in pervasive computing
environments, offers services backed by the best understanding of open
source and the most comprehensive resources, and delivers the brand of a
widely trusted open source leader and corporate partner. Red Hat offers
users one single, trusted point of contact and a common platform for
developing, deploying and managing open source across the Internet and
devices that connect to the Internet.

Red Hat is based in Research Triangle Park, N.C. and has offices
worldwide. Please visit Red Hat on the Web at www.redhat.com.

# # #

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,
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, product plans and performance,
the ability to continue to develop the Linux kernel and other software,
reliance upon strategic relationships, Red Hat’s dependence upon an open
source business model, reliance upon independent third-party Linux
developers, management of growth, 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, 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.