Red Hat Accelerates UNIX-to-LINUX Migration by Announcing the First Enterprise-Class Linux Operating System

Red Hat Linux Advanced Server Receives Unprecedented Enterprise Application Support; Oracle, VERITAS Software, and 20 other Top Independent Software Vendors Commit Application Availability

RALEIGH, NC, AND NEW YORK CITY—March 26, 2002—Red Hat, Inc. (Nasdaq: RHAT) today announced Red Hat Linux Advanced Server, the first enterprise-class Linux operating system. In addition, Red Hat will unveil unprecedented enterprise application support for Red Hat Linux Advanced Server at a partner and customer launch event today in New York City. Joining Red Hat at the launch are technology leaders Intel® Corporation, Oracle (Nasdaq: ORCL), VERITAS Software (Nasdaq: VRTS), as well as selected other customers from New York City's financial district.

Red Hat Linux Advanced Server products will enable large companies to accelerate their migration from costly, proprietary UNIX to far more cost-effective Linux running on Intel-based server systems. A recent total cost of ownership (TCO) analysis by IDC research showed that Linux reduces per-user costs by almost half in internet/intranet/extranet environments when compared to RISC/UNIX solutions. In collaborative computing these savings can exceed 75 percent. Red Hat Linux Advanced Server now brings this breakthrough TCO to database and application workloads that are common in large enterprises.

"The global enterprise IT market is looking for choice and hard -dollar savings. The low-cost / high value proposition of Red Hat Linux Advanced Server on Intel architecture delivers IT buyers the choice to receive performance without the lock-in and inflated costs of proprietary operating systems," said Paul Cormier, executive vice president of Engineering, Red Hat. " We've designed the new Red Hat Linux Advanced Server to provide software vendors with all the tools and capabilities they need so they can rapidly migrate their applications to an enterprise-class Linux environment. With enterprise application leaders such as Oracle, VERITAS, and many others involved, Red Hat Linux Advanced Server is the obvious choice for enterprises that want to break out of the stranglehold of proprietary operating systems and high-cost hardware."

"The combination of Intel-based servers with Red Hat Linux Advanced Server offers a compelling and robust platform option for enterprise computing," said Lisa Hambrick, director of enterprise processor marketing for Intel's Enterprise Platform Group. "Red Hat's effort exemplifies the broad choice, cost effectiveness and standards-based computing approach Intel-based solutions offer all-sized companies."

Red Hat Linux Advanced Server is the industry's first platform to deliver the full benefits of open source computing to the enterprise. Advanced Server and other future Enterprise Platform solutions from Red Hat combine software and value-added services to deliver the systems management, applications and security that enterprises need to efficiently migrate and manage thousands of servers.

Red Hat Linux Advanced Server Features and Support
Each copy of Red Hat Advanced Server will include a one-year subscription to Red Hat Network, for managed services, secure configuration, asset management and ongoing, centralized maintenance though a single, intuitive Web interface. In addition, the new Red Hat Linux Advanced Server offers:

• Reliability with Red Hat's commitment to software quality, global, 24x7 support, long-term API consistency, and 12-18 month release cycles.
• Availability with top performance, clustering, high-availability fail-over configurations and data integrity provisions through Red Hat Cluster Manager.
• Scalability with asynchronous I/O, improved process scheduler and, support for up to eight-way SMPs.
• Manageability with a Java-based Web console for cluster node management, automated security and performance updates from the Red Hat Network and Red Hat's full-scale life cycle services.

Additional technical details on Red Hat Linux Advanced Server and value-added services are available on Red Hat's Web site at: www.redhat.com.

Pricing and Availability
Red Hat Linux Advanced Server and integrated services are will be available in April from Red Hat, Inc. Pricing starts at $800 per server and up, based on the level of value-added services provided.

About Red Hat, Inc.
Red Hat is the world's premier open source and Linux provider. Red Hat is headquartered in Raleigh, 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) 753-3700.

To obtain a copy of the IDC Total Cost of Ownership study, go to: www.redhat.com/whitepapers.

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, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, 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.

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.