IBM To Preload Red Hat Linux On Netfinity Servers; Continues Widespread Adoption of Award-Winning Red Hat Linux 6.2 Internet Server Operating System - Company Business and Marketing

Edge: Work-Group Computing Report, May 1, 2000

Red Hat, Inc. (NASDAQ:RHAT), the leading provider of open source solutions for Internet infrastructure, announced Monday that IBM will pre-load Red Hat Linux 6.2 on its Netfinity Servers.

IBM's Intel-based Netfinity servers are tested, certified and supported to run Red Hat Linux 6.2. This OEM partnership echoes the growing momentum and widespread industry adoption of Red Hat Linux, allowing IBM the added flexibility to meet customer needs and specifications by offering Red Hat Linux either bundled with, or pre-installed on Netfinity.

"Red Hat is at the forefront of delivering Linux to the heart of the Internet infrastructure. The combination of Red Hat Linux, Red Hat's unmatched support services and IBM's powerful servers deliver a robust solution for companies' Internet initiatives," said Paul McNamara, director, business development, Red Hat, Inc.

The partnership leverage established technology and support agreements between both companies. In January, Red Hat began licensing and distributing IBM's Java Runtime engine, Java Virtual Machine (JVM) and the IBM Developer Kit for Linux, Java Technology Edition with the Red Hat Linux Operating Systems (OS) Enterprise Edition. Red Hat also provides worldwide support contact for users of the IBM Java Technology and level three support for the hardware partnership announced Monday.

"IBM continues to see increasing demand from customers for solutions based on the Linux operating system," said Sandy Carter, director, Partnerworld for Developers, IBM Netfinity. "By giving customers the choice to buy Linux pre-loaded on Netfinity servers directly from IBM or from IBM channel partners, IBM is making it easier for them to make their purchase. IBM Direct offers an alternative that some customers are requesting, while at the same time offering significant service and support opportunities for our channel partners."

Red Hat and 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. IDC preliminary figures for 1999 show Linux shipments hold 24.6 percent of the server operating system market, up from 15.8 in 1998. IDC research also shows 40 percent of all spending on Linux servers is for Internet-related applications, making Linux servers firmly embedded in the Internet infrastructure. Research firm NetCraft, Inc. (www.netcraft.com), states that 29 percent of all public Web servers also run on Linux, making Linux the most popular operating system for public Web sites. For more information about Netfinity servers, visit www.ibm.com/servers/netfinity.> 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.