From:	 Maribel Lopez <jlewis@schwartz-pr.com>
To:	 <lwn@lwn.net>
Subject: Red Hat Reports Fiscal Third Quarter Results
Date:	 Wed, 19 Dec 2001 11:44:26 -0500

RED HAT REPORTS FISCAL THIRD QUARTER RESULTS

-Profitability and positive cash flows from operations, adjusted for non-cash
items, highlight the quarter -

RESEARCH TRIANGLE PARK, North Carolina, -- December 18, 2001 -- Red Hat, Inc.
(Nasdaq:RHAT), the global leader in Linux and open source solutions, today
reported an adjusted net income of $1,300,000, or $0.01 per share, excluding
amortization of goodwill and stock based compensation and restructuring
charges, for the third quarter of fiscal 2002, compared to an adjusted net
loss of $100,000, or break even per share, for the second quarter of fiscal
2002.

The company reported revenue of $21.5 million for the third quarter ended
November 30, 2001, an increase of 2% over the second quarter of fiscal 2002.

On a GAAP basis, the company reported a net loss of $15 million, or $0.09 per
share, compared with a net loss of $55.3 million, or $0.33 per share in the
second quarter fiscal 2002.

For the last nine months ended on November 30, 2001, the company reported
revenues of $68.2 million, a decrease of 10% over the same period in year
2000. In terms of earnings, for the last nine months ended on November 30,
2001, the company reported an adjusted net income of $1,800,000, or $0.01 per
share, compared to an adjusted net loss of $10,000,000, or $0.06 per share,
for the last nine months of last year. On a GAAP basis, the company reported
a net loss of $97.9 million - or $0.58 per share - for the last nine months
ended on November 30, 2001, compared to a net loss of $62.5 million - or
$0.38 per share - for the last nine months of last year.

"Significant growth of Enterprise Subscription and Open Source Services
revenues are validating the acceptance of Red Hat Linux as an Enterprise
Computing Platform and Red Hat's ability to monetize the adoption of Red Hat
Linux by the Large Enterprise", stated Kevin Thompson, Executive Vice
President and Chief Financial Officer.

About Red Hat, Inc.

Red Hat is the global leader in Linux and open source solutions. Red Hat is
headquartered in Research Triangle Park, N.C. and has offices worldwide. For
investor inquiries, contact Gabriel Szulik at Red Hat, (919) 547-0012, x439.
More information about Red Hat is available at www.redhat.com.

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,
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.