Date: Mon, 11 Dec 2000 11:21:19 -0500
From: Maribel Lopez <mlopez@schwartz-pr.com>
To: <lwn@lwn.net>
Subject: Red Hat Announces Major Embedded Design Win


FOR IMMEDIATE RELEASE:

For more information:
Melissa London				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 ANNOUNCES MAJOR EMBEDDED DESIGN WIN TO HELP
CRADLE CREATE NEW GENERATION OF STREAM PROCESSING CHIPS

Significant Cradle Deal Continues Red Hat’s Momentum in Fast-Growing Embedded
Systems Market

RESEARCH TRIANGLE PARK, N.C.--December 11, 2000--Red Hat, Inc.
(Nasdaq:RHAT), the leader in developing, deploying and managing open source
Internet infrastructure solutions, today announced that Cradle
Technologies, Inc., is leveraging a broad set of Red Hat’s embedded
technologies and services as part of its strategy to supply a revolutionary
silicon platform for stream processing applications.

The Cradle contract is a significant embedded win for Red Hat because it
includes consulting services and porting of Red Hat’s GNUPro embedded
development tools, eCos and embedded Linux operating systems, to
Cradle’s Universal Microsystem platform (UMS). Cradle’s UMS platform
will make it possible for new a generation of complex embedded systems to
be developed by OEMs simply by redesigning software?rather than by
constantly rebuilding the entire chip hardware.

"This win continues the tremendous momentum for Red Hat in the embedded arena as
device manufacturers and innovators like Cradle, Ericsson, Hitachi, iObjects, Motorola,
NetSilicon and Samsung turn to Red Hat to help create a new generation of computing,"
said Matthew Szulik, president and CEO of Red Hat, Inc. "Cradle’s revolutionary
processor architecture represents a breakthrough for critical hardware applications that is
key to the Internet’s expansion."

"The availability of world class tools and operating systems are a critical part of our
silicon platform strategy," said Satish Gupta, president and CEO of Cradle Technologies.
"The combination of Red Hat’s unique technical capabilities, as well as its complete
solution of tools, run-time and library technologies and brand leadership, with our UMS
allows OEMs to leverage a rich set of re-usable components based on a foundation of
Open Source. This is the blueprint for how stream processing systems will be built in the
future."

Cradle’s UMS was designed to join the classic microprocessor, microcontroller, and
digital signal processor chip families as the first single-chip computing platform
specifically designed to meet the stream processing requirements of an ever increasing
range of consumer, business and industrial products. The UMS’ architecture allows
highly complicated applications to be created predominantly in software?rather than
with custom chips or expensive combinations of conventional processors, therby
revolutionizing the way OEMs can develop products and bring them to market.

International Data Corp. (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. Working with key semiconductor
providers, original equipment manufacturers (OEMs) and operators, Red Hat is focused
on bringing to market embedded platforms that are deployed and managed with
customizable and scalable Internet-based services that improve the reliability, security
and performance of Internet-connected appliances.

Red Hat has more than 10 years of unmatched experience in testing, releasing and
maintaining leading edge open source products and platforms based on a single source
base for Linux and GNU. For more information on Red Hat Embedded Linux please visit
http://www.redhat.com/embedded

Red Hat, Inc.

Red Hat (Nasdaq:RHAT) offers users one single, trusted point of contact and a common
platform for developing, deploying and managing open source across Internet
infrastructure and devices that connect to the Internet, ranging from small embedded
devices to high availability clusters and integrated Web server/ecommerce OSes. And the
Red Hat Network, Red Hat’s unique management technology, helps companies
worldwide easily manage it all by delivering open source products, service, support and
information on-line in real-time.

In addition to the award-winning Red Hat Linux server operating system, Red Hat offers
Stronghold Secure Web Server and Credit Card Verification Software for secure e-
commerce and is the principal provider of GNU-based developer tools and support
solutions for a wide variety of embedded processors. Red Hat also provides run-time
solutions such as Linux, eCos, uClinux, the award-winning RedBoot, custom engineering
services, support and training from to organizations in all embedded and Linux markets.

Red Hat is headquartered 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, management’s assessment of the market for embedded
devices, constitute forward-looking statements which involve risks and uncertainties.
These risks and uncertainties include, without limitation, Red Hat’s ability to service the
embedded device market, 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.