Date: Wed, 31 Jan 2001 11:04:19 -0500
From: Josh Slobin <jslobin@schwartz-pr.com>
To: <lwn@lwn.net>
Subject: Red Hat and Japan's Daiei Information System Forge Open Source Alliance


FOR IMMEDIATE RELEASE

For additional information:
Melissa London				   Bryan Scanlon/Josh Slobin
Red Hat, Inc.					Schwartz Communications for Red Hat
(919) 547-0012				       (781) 684-0770
melissa@redhat.com		        redhat@schwartz-pr.com


RED HAT AND JAPAN’S DAIEI INFORMATION SYSTEM FORGE
COMPREHENSIVE OPEN SOURCE ALLIANCE

End-to-End Strategic Agreement Includes 8,000-store Open Source Installation, Multi-
Tiered Support and Future Development

LINUXWORLD NEW YORK, NY--January 31, 2001--Red Hat, Inc.
(Nasdaq:RHAT), a leader in developing, deploying and managing open source Internet
infrastructure, today announced that Daiei Information System Co., Ltd. (DIS) of Tokyo,
Japan has chosen Red Hat Japan to provide a comprehensive system of end-to-end open
source solutions for the company and its subsidiaries and customers.

As previously announced, DIS plans to install a total of more than fifteen thousand Red
Hat Linux systems inside the (Daiei group) Lawson convenience store chain, which
includes approximately 7,600 stores nationwide. Red Hat Linux 7J, the Japanese-
language version of Red Hat’s most recent distribution, will replace Microsoft Windows,
enabling Lawson’s in-store customers to download multimedia content such as music and
movies from terminals throughout the stores. Red Hat, which maintains the largest open
source market share in both the United States and Japan, and its Japanese subsidiary,
RHJ, supplier of Red Hat Linux in Japan, will provide support and services for the
Lawson installation.

As another key piece of the agreement, DIS has built its internal Linux development
environment around Red Hat Linux, and already uses more than 200 Red Hat systems
internally. RHJ will provide engineering expertise with the GNU development
environment for DIS’s future technology development. Also, using the experience gained
from the Lawson installation, DIS will become a strategic integration partner for Red Hat
in Japan. The company plans to aggressively develop Red Hat-based open source
solutions for other Japanese businesses, with RHJ contracted to provide full technical
support.

"Daiei Information System chose Linux for its stability and superior reliability, and a
careful study of Linux suppliers revealed that Red Hat leads the pack in technical ability,
support services and reliability," said Hidefumi Sano, senior vice president of DIS.
"Through this extensive strategic agreement, Red Hat has showcased its ability to provide
open source solutions that truly span across the enterprise?an ability that can now be
extended to businesses throughout Japan."

"Red Hat’s strategy to provide complete open source solutions spanning across the
enterprise from Internet infrastructure to handheld devices continues to be an enormous
differentiator for partners like Daiei Information System," said Matthew Szulik, CEO of
Red Hat. "Red Hat is the unmistakable brand and market leader in the United States, and
now Japan has also embraced Red Hat as the de facto standard for Linux and other open
source solutions."

About Daiei Information System Co., Ltd.

Daiei Information System (part of the Daiei group), founded in 1985, is a provider of
distribution solutions, and supports network business, which provides connections
between manufacturers, retail stores and consumers. DIS established its extensive and
dynamic SCM (Supply Chain Management) system-configuring technology by applying
their original advanced Web-EDI technology, based on extensive know-how gained from
experience in chain-store system development. SCM systems enable users to enhance
communications efficacy between companies, including business meetings, master
registration of commodities and inventory control, and exchange of POS information.
DIS positions this system-configuration technology as its core business. It is establishing
a perfect business organization including consulting and support in order to meet the
increased needs of Internet-based information systems configuration.

DIS is also a total-solution provider and has held exhibitions and seminars aimed at
system management engineers or potential users considering adopting SCM systems for
their organizations. DIS has earned a high reputation from companies in a variety of
fields. Detailed information about DIS’s organization, products and service can be found
on their Web site: www.dis.daiei.co.jp.

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/e-commerce 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, Interchange 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, Red Hat Embedded, the award-winning RedBoot,
custom engineering services, support and training 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
Gabriel Szulik at Red Hat, 919-547-0012.

###

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