Red Hat Linux 6.2 Available for Compaq Customers; Red Hat and Compaq to Deliver Industry Leading Red Hat Linux Platforms through a Global OEM Agreement for Red Hat Linux 6.2

Business Wire, April 4, 2000

Business/Technology Editors

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--April 4, 2000

Red Hat, Inc. (NASDAQ;RHAT), the leader in open source Internet infrastructure solutions, announced today an OEM agreement with Compaq Computer Corp. (NYSE:CPQ) to provide the capability of offering bundled and pre-loaded Red Hat Linux 6.2 on Compaq servers, AlphaStations, and select Deskpro PC models. This expanded relationship continues the growing momentum and widespread industry adoption of Red Hat Linux. As evidence of this momentum, every Compaq ProLiant server is tested, certified and supported to run Red Hat Linux, as is every model within the AlphaServer DS and ES series, AlphaStations and select Deskpro PC models.

"Compaq's expanding commitment to Red Hat Linux illustrates the growing momentum for open source and Internet solutions," said Billy Marshall, senior director, product management, Red Hat, Inc. "The combination of Compaq's powerful server and workstation solutions and Red Hat Linux delivers Internet and enterprise computing to our customers."

Through Compaq's channel partners, customers will be able to purchase a complete Linux solution featuring Red Hat. Today's agreement allows Compaq the added flexibility to meet customer specifications by offering Red Hat Linux either bundled with, or pre-installed on, all ProLiant servers and Linux certified Alpha-based servers and workstations and select Deskpro PCs. Building on Compaq's and Red Hat's industry leading technology and support, the companies will continue to explore opportunities to add value and to exceed customer expectations in the reliability, manageability and availability of running Red Hat Linux 6.2 on Compaq systems.

"Compaq gives customers the broadest range of robust, industry leading offerings to implement their Linux solutions," said Rick Becker, director of software marketing, Compaq Computer Corporation. "Red Hat's new Red Hat Linux 6.2 with exciting features like software RAID, coupled with Compaq products, offers new levels of performance and reliability to meet the computing needs of customers worldwide."

Red Hat Linux 6.2 is part of Red Hat's complete family of operating systems (OS) for today's e-commerce servers and the growing number of embedded, Internet-enabled devices. The newest addition to Red Hat's line of award-winning Linux operating systems--the market leading open source operating systems--features more powerful installation, support, availability and clustering capabilities critical to Internet infrastructures.

Open Source Momentum

Iternational Data Corp. (IDC) research states that paid Linux shipments grew faster than any other server operating system over the past two years. IDC preliminary figures for 1999 show Linux shipments hold 24.6 percent of the server operating system market, up from 15.8 in 1998.

According to research firm NetCraft, Inc. (www.netcraft.com), 29 percent of all public Web servers run on Linux, making Linux the most popular operating system for public Web sites. 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 partnerships 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 Compaq, Computer Associates, Corel, Dell, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle and SAP.

About Red Hat, Inc.

Founded in 1994, Red Hat (NASDAQ:RHAT), is the leading provider of open source, Internet infrastructure solutions, delivering on the promise of open source from small embedded devices to the most prodigious enterprise. Red Hat applies its technological leadership to create open source solutions for Internet infrastructure and post-PC environments, offers services backed by the best understanding of open source and the most comprehensive resources, delivers the brand of a widely trusted open source leader and corporate partner, and persists in an indelible commitment to the virtues of open source to lead a revolution in the computing industry.

Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. To learn about Red Hat's perennially renowned products and services or its unfailing commitment to the GNU General Public License (GPL) and other public licenses, 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 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, reliance upon strategic relationships, the ability to continue to develop the Linux kernel and other software, 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.