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Date: Tue, 10 Oct 2000 10:02:09 -0400
From: Maribel Lopez <mlopez@schwartz-pr.com>
To: <lwn@lwn.net>
Subject: Red Hat Supports the Complete IBM eServer Line for the Next Phase of e-Business


FOR IMMEDIATE RELEASE

For more information:
Melissa London
Red Hat, Inc.
(919) 547-0012
melissa@redhat.com


RED HAT SUPPORTS THE COMPLETE IBM ESERVER LINE FOR THE
NEXT PHASE OF E-BUSINESS

Red Hat is the First Linux Developer to Offer Complete Package of IBM Software,and
eServer Line, Along With Services, for Linux

RESEARCH TRIANGLE PARK, N.C.--OCTOBER 9, 2000--Red Hat, Inc.,
(Nasdaq:RHAT), the leader in developing, deploying and managing open source Internet
infrastructure, today announced its support of IBMís new eServer(a), the next generation
of servers created to handle the unparalleled demands of e-business.

IBMís newly introduced eServer line is built around open standards and features
mainframe-class reliability and scalability while providing capacity on demand to meet
the intense requirements of todayís high-speed networks.

With this announcement, Red Hat Linux(tm) will run on the entire IBM eServer line and all
of IBMís Linux-enabled software, providing customers application flexibility across a
variety of platforms from large enterprises to small businesses.

Red Hat and IBM entered an agreement in August 2000 ("IBM and Red Hat Collaborate
to Deliver e-business Software Solutions for Linux") to jointly market, distribute and
support bundled IBM, Lotus, Tivoli and Red Hat software offerings. For more
information and availability of these offerings, please see
www.redhat.com/products/software.

"With the eServer launch just last week, itís exciting to see the entire line embraced by
Red Hat - the industry-leading Linux developer," said Dick Sullivan, vice president,
Solutions and Integration Marketing, IBM Software. "Red Hat clearly understands the
demands placed on companies implementing e-business on Linux and can now offer
customers support across highly scaleable server and middleware lines delivering an
integrated solution for the smallest business to the largest enterprise."

The IBM eServer family is designed for serious e-business -- where customers need 24x7
reliability and security. The new line combines IBMís best server assets, including years
of expertise in developing servers and the software that works best on them, with an
industry-leading commitment to deliver what customers need to make their e-
infrastructure work for the next phase of e-business.

"IBM and Red Hat have a strong relationship that dates back to the early days of our
company and has expanded several times, and we see this announcement as reinforcing
IBMís commitment to Linux and to Red Hat," said Matthew Szulik, president and CEO,
Red Hat, Inc. "The fact that Red Hat Linux supports the entire eServer line demonstrates
the scalability, reliability and power of our offering. With Red Hat Linux and the IBM
eServer line, IBM customers will have the best possible foundation on which to build
their Internet infrastructure."

Red Hat Linux will be supported on the complete IBM eServer Line, which includes:

- IBM eServer zSeries: most reliable, mission-critical data and transaction server on
earth. - IBM eServer pSeries: most powerful, technologically advanced UNIX server. -
IBM eServer iSeries: high performance, integrated business server for mid-market
companies. - IBM eServer xSeries: affordable, Linux-ready, Intel-based servers with
mainframe-inspired reliability technologies.

In addition, Red Hat is making available today, via their Web site
(www.redhat.com/products/software), the following IBM middleware:

- Red Hat Linux and IBM DB2(R) Universal Database - Red Hat Linux and IBM
WebSphere(R) Application Server - Red Hat Linux and Lotus Domino(R) - Red Hat
Linux and IBM Small Business Pack for Linux

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 Hatís numerous alliances with industry leaders and the demand for Linux-based
applications has created open source support from many of the industryís leading
software and hardware manufacturers, including Dell, Compaq, Computer Associates,
Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle and SAP.

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. 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, managementís plans and objectives for future operations
and managementís 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 Hatís dependence
upon an open source business model, reliance upon independent third-party Linux
developers, management of growth, expansion of Red Hatís business focus and
operations, the possibility of undetected software errors, the enforceability of the GNU
General Public License and other licenses under which Red Hatís products are developed
and licensed, the scarcity of Linux-based applications, the risks of economic downturns
generally, and in Red Hatís industry specifically, the risks associated with competition
and competitive pricing pressures, the viability of the Internet, and other risks detailed in
Red Hatís filings with the Securities and Exchange Commission, copies of which may be
accessed through the SECís Web site at http://www.sec.gov.

(a) The IBM eServer brand consists of the established IBM e-business logo with the
following descriptive term "server" following it. The IBM e-business logo, xSeries,
iSeries and zSeries are all trademarks of IBM Corporation.