Date: Tue, 1 Aug 2000 10:09:42 -0400
From: Greg Smith <gsmith@schwartz-pr.com>
To: <lwn@lwn.net>
Subject: Ericsson and Red Hat Form Strategic Initiative in Home Communications





FOR FURTHER INFORMATION, PLEASE CONTACT (U.S.)

Melissa London					Bryan Scanlon
Red Hat, Inc.					  Schwartz Communications, Inc.
919-547-0012					 781-684-0770
melissa@redhat.com			    redhat@schwartz-pr.com


ERICSSON AND RED HAT FORM STRATEGIC INITIATIVE IN HOME
COMMUNICATIONS

RESEARCH TRIANGLE PARK, N.C.--AUGUST 1, 2000--Ericsson
(Nasdaq:ERICY) and Red Hat, Inc. (Nasdaq:RHAT) the leading provider of open
source Internet infrastructure solutions, today announced a strategic initiative to
jointly develop a new range of consumer products and services for home
communications.

International Data Corporation (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. To
capitalize on this opportunity, Ericsson and Red Hat will jointly develop consumer
products combining existing industry standards such as Java and the latest open
source technologies such as Embedded Red Hat Linux. The products will also
support existing and evolving standards such as broadband networking and
Bluetooth, where Ericsson is a world leader.

The first product from this partnership is the Ericsson Cordless Screen Phone
unveiled at CeBIT 2000, that will be commercially available at the end of this year.
Additional Internet services are being jointly designed by both companies,
specifically targeting operators (telecommunications, Internet and Application
Service Providers) that are increasingly looking to offer consumers new, easy-to-use
and innovative levels of service. An example is the upgrading of Ericsson’s installed
base of products which will enable consumers to use the latest applications and
content without having to worry about technical complexities.

"This strategic initiative will bring to life the exciting new market for mobile Internet
devices in the home and is a natural extension of our vision of anywhere, anytime
communication," said Björn Krylander, vice president and general manager, Ericsson
Home Communications. "Red Hat delivers unique software and expertise in all the
areas critical to launch this initiative: the embedded Linux software powering
affordable and reliable devices for home communications, the Internet servers
powering the back end infrastructure, and the networking and communications that
ties together thousands of loosely connected mobile devices. We are also excited
about the development with Red Hat of new services for these operators. These
services will support Ericsson’s Vizion program, that will link many wireless and
wired devices in an integrated home network."

"Pairing Ericsson’s world leadership in communications and Red Hat’s unmatched
open source expertise can accelerate the adoption of open source solutions in the
growing home communications marketspace," said Matthew Szulik, president and
CEO of Red Hat, Inc. "The agreement between Ericsson and Red Hat is one of the
first of this kind in the industry to provide a comprehensive range of post-PC
products and services designed specifically for home communications. Ericsson sees
the value in bringing to market innovative products and services that are increasingly
based on open platforms and open standards."

As part of this initiative Ericsson will also work with Red Hat to establish open
technologies, such as the latest Embedded Red Hat GNU development tools, that will
be made freely available to developers through redhat.com. Both companies believe
there is a huge market of open source and third party developers that are waiting to
design, port and develop new applications, for innovative Linux-based products such
as those being developed by Ericsson Home Communications. Ericsson and Red Hat
are also jointly establishing new mechanisms, for the creation of Web content and
certification of applications for these Internet appliances. For operators, this will
mean new Linux-based infrastructure technologies and services, that will provide
easy to manage upgrades across the Internet. For consumers, this will mean a range
of easy-to-use and fun Home Communications appliances, such as the Cordless
Screen Phone designed by Ericsson.

About Ericsson

Ericsson is the leading communications supplier, combining innovation in mobility
and Internet in creating the new era of mobile Internet. Ericsson provides total
solutions covering everything from systems and applications to mobile phones and
other communications tools. With more than 100,000 employees in 140 countries,
Ericsson simplifies communications for customers all over the world.

Read more at: www.ericsson.com/pressroom

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, Inc. 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.

Red Hat Europe was established in July 1999 with its European headquarters based
in Surrey, United Kingdom and offices throughout Europe.

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.


FOR FURTHER INFORMATION, PLEASE CONTACT (Europe):

Jan Ahrenbring, Vice President Marketing and Communications
Ericsson Mobile Communications AB
Phone: +46 70 590 9900

Bo Albertson, Marketing Manager, Information and Events
Ericsson Mobile Communications AB
Phone: +46 70 510 0992

Clea Herrmann/Nick Rappolt
Firefly Communications
Phone: +44 207 381 4505
Email: clea.herrmann@firefly.co.uk

Fiona Phelps
Red Hat Europe
Phone: +44 (0)1483 734905
Email: fphelps@redhat.com