Red Hat Supports the Complete IBM eServer Line for the Next Phase of eBusiness

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 (NASDAQ: RHAT), the leader in developing, deploying and managing open source Internet infrastructure, today announced its support of IBM's new eServer*, the next generation of servers created to handle the unparalleled demands of e-business.

IBM's 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 today's high-speed networks.

With this announcement, Red Hat Linux will run on the entire IBM eServer line and all of IBM's 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

"With the eServer launch just last week, it's 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 IBM's 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 IBM's 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:

In addition, Red Hat is making available today, via their Web site (, the following IBM middleware:

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

About 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 For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

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, product plans and performance, the ability to continue to develop the Linux kernel and other software, 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

*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.

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.