Dell First Major Systems Vendor to Factory Install Red Hat Linux on Corporate Systems

Dell Computer Corporation (Nasdaq: DELL) -- the world's leading direct systems vendor -- and Red Hat� Software, Inc. -- a leader in Linux technology and services -- jointly announced today that Dell will factory install the Red Hat Linux operating system on Dell� PowerEdge� servers and Dell Precision� WorkStations.

The announcement, which expands the joint efforts of Dell and Red Hat to make Red Hat Linux a success in the corporate market, also makes Dell the first major systems vendor to offer Web ordering of systems with Red Hat Linux already installed. Dell said the move is a response to growing customer demand worldwide for systems configured with Linux.

Dell, the leading supplier of systems to corporate America1, also said it plans to offer Red Hat Linux pre-installed on Dell OptiPlex desktop PCs during the second quarter of 1999.

Dell and Red Hat also said that Burlington Coat Factory had purchased 1,250 Dell OptiPlex desktop PCs with Red Hat Linux installed. Through the DellPlus Custom Factory Integration program, the 1,250 systems were configured and shipped directly to 264 Burlington Coat Factory locations throughout the United States. (See separate release for details.)

The two companies have worked together to ensure corporate customers that Red Hat Linux would run and be supported on selected Dell systems. Today, the two companies take an additional step to make Red Hat Linux easier to obtain from Dell. Under the expanded partnership, customers at Dell's Web site can order and easily customize selected configurations of the Dell Precision WorkStation 410 or 610 with Linux. Customers can also easily order selected Dell PowerEdge 1300 and 2300 servers on Dell's Web site. Dell OptiPlex desktop PCs will be orderable in the same easy fashion in the second quarter of 1999.

Red Hat and Dell also announced today that their expanded relationship includes a minority equity investment in Red Hat by Dell. Terms of the investment were not disclosed.

"Our expanded partnership with Dell represents a broad commitment by both companies to make Red Hat Linux a success in the corporate market," said Robert F. Young, co-founder and CEO of Red Hat Software. "Dell's powerful one-to-one relationship with its customers and its highly efficient, build-to-order capabilities make it tremendously easy for companies to choose and order Dell systems pre-configured with Red Hat Linux."

"As the third largest supplier of PC systems worldwide and the leader in providing PC systems to the US corporate market, Dell is a driving force in the use and acceptance of key technologies for corporations worldwide," said Michael Lambert, senior vice president, Dell Enterprise Systems Group. "Our relationship with Red Hat, a leader in the delivery of Linux technology, enables us to respond to customers with Dell systems configured with Linux that are reliable and backed with outstanding support."

Today's announcement caps a quarter of major announcements and momentum for Red Hat. At last month's LinuxWorld Expo, more than 8,000 members of the Linux community voted Red Hat a "LinuxWorld Favorite." InfoWorld also once again named Red Hat Linux "Product of the Year" for the third consecutive year.

About Linux

According to IDC Research, Linux was the fastest-growing server operating environment in 1998, capturing more than 17 percent of all server operating system shipments. More than an estimated 10 million users currently run the Linux operating system. Linux is the cooperatively developed POSIX-oriented, multi-user, multi-tasking operating system used worldwide. Linux is strongly differentiated from virtually all other operating systems because it is "open source" software, with the source code freely available to all users. Red Hat Linux is maintained by the guidelines of the Linux General Public License (GPL) as "freely distributable" software available from many sites on the Internet.

About Dell

Ranked No. 78 among the Fortune 500 companies and No. 363 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $18.2 billion for the past four quarters. Dell designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained through its toll-free number 1-800-388-8542 or by accessing the Dell World Wide Web site at www.dell.com.

About Red Hat� Software, Inc.

Founded in 1994, Red Hat Software is based in Research Triangle Park, NC, where it is a leader in the development of open source software solutions. Red Hat Development builds the most accessible and advanced operating system available anywhere with technical innovations such as RPM and disk druid installation tool. Red Hat Linux is available for Intel� , Compaq Alpha� , and Sun SPARC� platforms. Red Hat Linux was named InfoWorld 's Product of the Year for three years in a row, was given a Productivity accolade in Software Development 's "Jolt" Awards, was named an Environment/Desktop finalist in the Ziff-Davis European Excellence Awards, won the editor's choice awards from both the Linux Journal and Australian Personal Computing magazines, and won the "Just Plain Cool" award from Australian Personal Computing magazine. For more information about Red Hat Software and Red Hat products and technologies, please call 1-888-REDHAT1 or visit our Web site at http://www.redhat.com/ . Reviews encouraged.

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