Red Hat Announces Immediate Availability of Red Hat Linux 7.2

Red Hat Linux 7.2 further strengthens the position of Red Hat Linux as the most reliable and cost-effective alternative to proprietary Unix systems

RESEARCH TRIANGLE PARK, N.C.—October 22, 2001—Red Hat, Inc. (Nasdaq:RHAT) today announced that Red Hat Linux 7.2 and Red Hat Linux Professional are now available in stores, through computer resellers and direct from Red Hat. The latest version of the market leading Linux distribution adds significant new capabilities, both for use as a workstation and use as a server. Red Hat Linux 7.2 and Red Hat Linux Professional will also be available through hardware partners in the coming weeks.

"Red Hat Linux has built an unmatched reputation in terms of reliability, security, cost effectiveness and service - and as a result, we are seeing more and more software developers choose Red Hat Linux as their Linux development platform of choice," said Paul Cormier, Executive VP of Engineering, Red Hat. "We are pleased that for the first time in the open source space, Red Hat Linux 7.2 will provide both developers and customers a unified code base for a full spectrum of computing platforms, from small, embedded devices up to the largest mainframe computers."

Key new features of Red Hat Linux 7.2 enhance the viability and value of the Linux OS as a server in the corporate environment. These include:

• The 2.4.7 Linux kernel for increased scalability
• Ext3 Journaling file system for data reliability
• Network Configuration, User Management, and Hardware Viewing tools for infrastructure and development
• Firewall Configuration during installation and Red Hat Network for added security

Red Hat Linux 7.2 is a powerful workstation product at an unbeatable price. Key new features include:

• Improved USB support
• Nautilus file manager
• Mozilla Web browser
• Latest versions of the GNOME and KDE desktop environments
• Office applications, such as a full version of Sun StarOffice 5.2
• Printed Installation Guide and extensive Linux documentation
• C, C++, Java and other compilers as well as Python, Perl and PHP interpreters
• Complete web, file, mail, name, ftp and print servers
• Loki Game demo CD
• 30 days of Web-based support
• 30-day subscription of Red Hat Network Software Manager for 1 system

Red Hat Linux Professional is for professional workstations and servers. It includes everything in Red Hat Linux 7.2, plus:

• A printed Customization Guide
• A Web Server Applications CD with application development tools and Interchange ECommerce package
• Workstation Applications CD with Adobe Acrobat Reader, IBM Java Run Time Environment and more
• System Administrator CD
• 60 days of Web-based support
• 60 days of Telephone-based support, including 2 incidents
• 180-day subscription of Red Hat Network Software Manager for 1 system

Within six months, Red Hat will announce an advanced server version of Red Hat Linux 7.2, with a Linux kernel specifically compiled for datacenter deployments, including full support for UP through 8-way SMP systems. Also due out later is a version of Red Hat Linux 7.2 for IBM's S/390 Mainframe, complete with the 2.4 kernel, development libraries, and S/390 specific tools and utilities for installation natively or as VM guests. For both products Red Hat will offer a complete set of support and professional services, including software maintenance, technical support, consulting, deployment, integration, training and custom development services.

Additionally, Red Hat will be announcing the availability of the Red Hat Embedded Linux Developer Suite, a packaged solution for creating embedded applications and devices. The Developer Suite, which will start at $2,500.00, accelerates development cycles and improves product quality by using Red Hat Linux 7.2 as the common base for the host and target platforms.

"The unified code base of Red Hat Linux 7.2 provides an unprecedented technical capability, which will have market-changing ramifications," said Michael Tiemann, CTO of Red Hat. "Embedded systems can now save cost by using commodity PC components, benefiting from the immense driver support offered by Red Hat Linux 7.2. Mainframes, which offer tremendous capabilities and capacities for workload and data management, can now manage modern Linux-based applications and services."

"Recent IDC surveys show that many organizations see Linux as a low-end replacement for UNIX," said Dan Kusnetzky, VP system software, IDC. "Concerns about Linux's scalability, reliability and manageability have been holding back the Linux implementation plans in these organizations. The announcement of Red Hat Linux 7.2 is likely to put many of these concerns to rest."

Pricing and Availability
Red Hat Linux 7.2 is priced at $59.95; Red Hat Linux Professional is priced at $199.95; Red Hat Embedded Linux Developer Suite will start at $2,500.00. Pricing for the other products will be announced upon availability. Contact Red Hat for pricing of various service and support programs.

Red Hat Linux 7.2 is available at www.redhat.com and at retail stores including Best Buy, CompUSA and MicroCenter. Red Hat Linux 7.2 will also be available through hardware partners such as Dell, Compaq, IBM and Penguin Computing.

About Red Hat, Inc.
Red Hat is the leader in developing, deploying and managing solutions built on the benefits of an open source platform. The open source platform includes the Red Hat Linux operating system for mainframes, servers, workstations and embedded devices, GNUPro tools for developers, database, e-Commerce, secure web server, high availability server and run-time solutions like eCos and RedBoot. For this platform, Red Hat provides end to end professional services including Professional Consulting, Engineering services, Enterprise Support services, and Global Learning services. Red Hat Network is the premier Internet based service that simplifies and integrates the deployment and management of these offers. More information about Red Hat is available at http://www.redhat.com/index.html. Red Hat is headquartered in Research Triangle Park, N.C.and has offices worldwide. For investor inquiries, contact Gabriel Szulik at Red Hat, 919-547-0012, x439.

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/.

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