IBM to Deliver Red Hat Training and Certification Programs Worldwide

The World's Largest Information Technology and Training Provider Will Offer Red Hat Certified Engineer Program at IBM Training Centers Worldwide

RESEARCH TRIANGLE PARK, N.C.—May 15, 2000—Red HatŪ, Inc. (NASDAQ:RHAT), the leading provider of open source solutions for Internet infrastructure, today announced an agreement with IBM to deliver Red Hat's leading Linux training and certification program. Under the agreement, IBM, the world's largest global IT training provider, will offer the hands-on, real-world Red Hat Certified Engineer (RHCE) program at IBM training centers around the world.

The agreement, which follows a deal to pre-load Red Hat Linux 6.2 on IBM's Netfinity Servers, broadens the availability of the popular RHCE program worldwide to meet the growing demand for expertise in Linux, the fastest-growing server operating system. The partnership pairs Red Hat's comprehensive Linux training and certification program with the largest information technology company in the world to meet worldwide users' growing demand for open source expertise in today's enterprises. IBM Global Services plans a rapid rollout of RHCE training and certification in all major markets and languages. This effort will be supported through Red Hat's capabilities for RHCE instructor training at Red Hat facilities worldwide.

``We are pleased to have IBM roll-out the RHCE program and become a Red Hat Certified Training Partner worldwide,'' said Peter Childers, director of training at Red Hat. ``With its global reach, strong record for quality IT training, and its growing Internetworking and e-commerce business, IBM can bring Red Hat's innovative training and certification programs to enterprise customers and IT professionals when and where they need it.''

``This agreement delivers IT professionals Red Hat's highly-acclaimed certification program right to their backyard and in some of the most advanced training centers in the world,'' said Carolyn Sparano, business unit manager, Services, Red Hat, Inc. ``Time-pressed IT professionals who want to learn Linux-based systems, further develop their Internetworking skills and achieve credible certification now have real-world training conveniently available to help them accelerate the adoption of open source solutions within their organizations.''

According to IDC, IBM Global Services is the world's largest training provider. The first courses, including the RHCE exam, will be available at IBM Training Centers starting in the second quarter of 2000. Information on RHCE courses is posted at http://www.redhat.com/services/training/training.html and http://www.ibm.com/services/learning/spotlight/linux.html.

``IBM is very pleased to offer Red Hat's performance-based certification program for e-commerce, systems and network engineers deploying Linux for enterprise systems,'' said Michael Littlejohn, Americas general manager, Learning Services, IBM Global Services. ``The Red Hat certification program adds to our portfolio of high-quality, hands-on, real-world training�something that IBM's worldwide customers have come to expect.''

About the Red Hat Certified Engineer Program

Taught by RHCE's with considerable Internetworking experience, Red Hat's certification program offers more than traditional, multiple-choice written exams and ``paper certifications.'' RHCE Certification requires success on performance-based practical exams, in which users actually demonstrate the ability to: install and configure Red Hat Linux, set up common network (IP) services, and perform essential administration, diagnostic tests and troubleshooting, among other Internetworking and systems administration tasks. Red Hat courses are available for the entire RHCE Certification track, at levels appropriate for both beginners and networking professionals looking to migrate to open source solutions and build or expand their experience with Linux-based operating systems.

Open Source Momentum

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

Research firm Netcraft, Inc. (http://www.netcraft.com/), states that as of April 2000, 33 percent of all public Web sites run on Linux-based operating systems, making Linux the most popular choice for deploying 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 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 Compaq, Computer Associates, 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 http://www.redhat.com/. 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 http://www.sec.gov/.

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.