Gateway Joins Red Hat Reseller Program

Responds to Growing Customer Demand for Linux-based Operating Systems by Installing Red Hat Linux 6.0 Operating System on Gateway Business Servers

Durham, N.C.--September 7, 1999--Red Hat , Inc., a leading developer and provider of Linux-based operating system (OS) solutions, today announced that Gateway (NYSE: GTW) has joined its authorized reseller program. When requested by its customers, Gateway will install Red Hat's powerful, open source Linux-based OS on its ALR� servers for network business environments.

Gateway's built-to-order servers will be certified as "Red Hat Ready" and tested for optimal performance. Gateway's ALR servers incorporate up to four Pentium III Xeon processors, leveraging Red Hat Linux's support of symmetrical multi-processor (SMP) for up to four processors. This and many other features of Red Hat Linux 6.0 deliver stability and reliability for demanding business environments.

"Gateway customers are asking for Linux solutions and the freedom of open source environments," said Ron Smith, vice president, marketing, Gateway Business. "We believe that Red Hat has the leading Linux offering and support, delivering our customers the best possible open source solution for their business needs."

Gateway will offer the Red Hat Linux operating system as one of the operating systems available to customers on the Gateway server platforms, and installed through Gateway's Custom Integration Services group. As a Red Hat reseller, Gateway can supply clients with Red Hat's fee-based technical support offerings at point of sale, or they can be sourced directly from Red Hat. This allows customers to access the knowledge and talent of a company that is a leader in Linux-based operating systems and understands its full potential for an IT environment. In addition, Gateway professionals will receive training and certification as Red Hat Certified Engineers and will be supported by Red Hat's open source expertise delivering Gateway customers powerful solutions and top support for Linux deployments.

"The stability, reliability and the freedom to change open source systems offer users of Gateway's Red Hat Linux-based servers a powerful, well-supported solution that can handle intense and important business applications in today's companies," said Teresa Spangler, business unit leader, sales, at Red Hat, Inc.

About Gateway

Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer PC revenue in the second quarter of 1999. Our employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems. For more information, visit our Web site at http://www.gateway.com/.

About Red Hat, Inc.

Founded in 1994, Red Hat (NASDAQ: RHAT) is the market leader in open source operating system (OS) software and services. Along with its award-winning open source Red Hat Linux OS, Red Hat offers a full line of services, including telephone support, on-site consulting, developer training, certification programs and priority access updates, making Red Hat a leading and complete resource for knowledgeable, innovative, mission-critical open source solutions.

Red Hat shares all of its software innovations freely with the open source community under the GNU General Public License (GPL). The Official Red Hat Linux OS and related services are available directly from the company and through its partner, distributor and reseller programs, which include top PC and server manufacturers such as Compaq, Dell, Gateway, IBM, Hewlett-Packard and Silicon Graphics.

Red Hat and the Official Red Linux OS have received industry praise. Recent accolades include: Red Herring's Top 100 Companies of the Electronic Economy, Upside's Hot 100 Companies, Network World's 10 Companies to Watch, Federal Computer Week's Government Best Buy, Software Development's Jolt Award and InfoWorld's Product of the Year for three years in a row. At March's LinuxWorld Expo, attended by more than 8,000 members of the Linux community, Red Hat was also voted a LinuxWorld Favorite.

Red Hat is based Durham, N.C. and has offices worldwide. Visit Red Hat on the Web at http://www.redhat.com/.

LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. Gateway and the Gateway stylized logo are trademarks of Gateway, Inc. All other names and trademarks are the property of their respective owners.

1. According to GartnerGroup/Dataquest US PC Quarterly statistics.

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, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, and statements regarding the strategy and plans of Red Hat and its strategic partners, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, risks associated with Red Hat's dependence upon an open source business model, reliance upon independent third-party Linux developers, management of growth, reliance upon strategic relationships, 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, year 2000 compliance efforts of Red Hat and of third parties on which Red Hat depends, 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/.