Date: Wed, 14 Jun 2000 09:28:40 -0400
From: Brian Willinsky <bwillinsky@schwartz-pr.com>
To: <lwn@lwn.net>
Subject: Red Hat, Inc. to Acquire Embedded Linux Developer Wirespeed


FOR IMMEDIATE RELEASE

For More Information:
Media:						Investors:
Melissa London					Hal Covert, Red Hat, Inc.
Red Hat, Inc.					Chief Financial Officer
(919) 547-0012					(919) 547-0012
melissa@redhat.com                              hcovert@redhat.com


Peter Gorman or Bryan Scanlon  	                John Heilshorn or Jody Burfening
Schwartz Communications for Red Hat             Lippert/Heilshorn & Associates
(781) 684-0770                                  (212) 838-3777
redhat@schwartz-pr.com                          john@lhai.com/jody@lhai.com


RED HAT, INC. TO ACQUIRE EMBEDDED LINUX DEVELOPER WIRESPEED

Expands Red Hat’s Unmatched Custom Development and Consulting Expertise

Research Triangle Park, N.C.--June 14, 2000--Red Hat, Inc. (NASDAQ:RHAT),
the leader in open source Internet infrastructure solutions, announced today that it has
signed a definitive agreement to purchase privately-held WireSpeed Communications
Corporation.  Under the terms of the agreement, Red Hat will issue 1,531,232 shares
of Red Hat common stock in exchange for all of the outstanding securities of
Huntsville, Alabama-based WireSpeed.  Red Hat may issue additional shares based
upon the future performance of WireSpeed.  The transaction will be valued based on
an average closing price of Red Hat’s common shares for the five-day period ended
June 15, 2000.  The acquisition will be accounted for as a purchase and is expected to
be completed by July 31, 2000, subject to customary closing conditions.

International Data Corp. (IDC) research 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.  Connecting these
devices to the Internet and private networks will be essential.  WireSpeed is a leading
developer of network and telecommunications components for embedded systems
software.  WireSpeed's clients include semiconductor, Internet device and industrial
control leaders, including companies like Hewlett-Packard, Interphase, NETsilicon,
STMicroelectronics and Time Domain Corporation. WireSpeed will become part of
Red Hat's Client Services Group---the industry's largest source of custom Open Source
development expertise in embedded, networked and post-PC devices. Matthew Szulik
remains president and CEO of Red Hat.

"The addition of WireSpeed's embedded development expertise helps Red Hat
continue to meet the tremendous demand for embedded development," said Matthew
Szulik, president and CEO of Red Hat, Inc. "Wirespeed's expertise in
telecommunications and networking for embedded systems also strengthens Red Hat's
position as the technology and market leader for Open Source Internet Infrastructure
solutions ranging from powerful servers to the smallest embedded devices."

In January, 2000, Red Hat acquired Cygnus Solutions, Inc., a top provider of Open
Source software, development tools, engineering services and developer support for a
variety of desktops, client/server systems, real-time operating systems (RTOS) and
embedded, post-PC platforms. Red Hat's Client Services Group provides custom
engineering services to top companies worldwide, helping them quickly create and
deploy next-generation Internet infrastructure solutions, including appliances,
handhelds and other post-PC and deeply embedded devices. With the addition of
Cygnus and WireSpeed, Red Hat's Client Services Group now delivers more than 100
next-generation software developers.

"Red Hat has a tremendous vision, expertise and market lead in creating a whole new
generation of powerful, reliable devices running Open Source solutions," said Andrew
Bailey, President of WireSpeed. "The combination of WireSpeed and Red Hat will
help companies bring a new paradigm of post-PC, Open Source computing to market
more quickly."

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 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, 36
percent of all public Web sites run on Linux-based operating systems, making Linux
the most popular choice for deploying public Web sites.

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

About WireSpeed

WireSpeed is a leading developer of communications software for embedded systems.
Harnessing the power of Linux, WireSpeed's customized solutions act as a catalyst for
expediting the growth and innovation of next-generation Linux-based networked
products. WireSpeed's expertise complements existing in-house resources and allows
companies to focus on core competencies, accelerating time-to-market and reducing
development costs. WireSpeed ports Linux to various architectures (traditional
microprocessor and DSP) and crafts network drivers to get customer devices
connected to ATM, xDSL, Ethernet, or analog networks. WireSpeed provides
solutions for many industry leaders in the semiconductor, Internet device and
industrial control markets.

About Red Hat, Inc.

Founded in 1994, Red Hat (Nasdaq:RHAT), is the leading provider of open source
Internet infrastructure solutions, ranging from small embedded devices to high
availability clusters and Web serving.  Red Hat applies its technological leadership to
create open source solutions

for Internet infrastructure and post-PC environments, offers services backed by the
best understanding of open source and the most comprehensive resources, delivers the
brand of a widely trusted open source leader and corporate partner, and persists in an
indelible commitment to the virtues of open source to lead a revolution in the
computing industry.

Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. Visit Red
Hat on the Web at 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, 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.