IBM broadens Linux support

Red Hat and IBM Collaborate on e-Business Software Solutions

LinuxWorld Conference & Expo, SAN JOSE - 15 Aug 2000: -- IBM today announced a global agreement that enables Red Hat, Inc. to bundle IBM's Linux-based software. The company also announced several hardware and software technologies for Linux, including a thin client and the ability to run Linux applications on IBM's NUMA-Q® server.

The announcements are the latest initiative in IBM's continuing strategy to embrace Linux across its entire product and services portfolio. Recently, IBM announced:

Linux running on a wrist watch;

Contribution to the open source community of source code of SashXB for Linux, which offers Linux developers the ability to write Web applications that are tightly integrated into the Linux desktop; and

Small Business Pack for Linux, a promotional offering of industry-leading software for e-businesses at an affordable price.

IBM and Red Hat
IBM and Red Hat will strengthen their relationship that began in early 1999 by jointly marketing, distributing, and supporting IBM, Lotus, Tivoli and Red Hat software offerings. IBM will provide the software infrastructure for Red Hat Linux solutions through products such as IBM DB2® Universal Database, IBM WebSphere™ family of e-business servers, Lotus Domino®, Tivoli Framework®, and IBM's Small Business Pack for Linux.

"We are delighted that Red Hat has embraced IBM software for building e-business solutions for our mutual customers," said Steve Mills, general manager, Solutions and Strategy, IBM Software. "By working together and having the breadth of software available for Linux from IBM, Lotus, Tivoli and Red Hat, we can offer our customers more choices for complete e-business solutions, and with global availability and support."

Linux: Desktop Offerings
IBM is continuing to take steps forward in the availability of Linux on the desktop. IBM is Linux-enabling the NetVista® Thin Client for businesses seeking desktop solutions that are reliable, affordable, and offer the flexibility of Linux. IBM's initial offerings will be based on TurboLinux® and will support both N2200 and N2800 models.

Also at LinuxWorld, IBM announced it is joining the GNOME Foundation, a prominent consortium dedicated to advancing the availability of the open source desktop environment.

IBM is collaborating with HelixCode, a leading open source desktop company, and is shipping select ThinkPad® notebooks pre-configured with Linux. IBM offers customers a choice of desktop environments to best meet their needs, including HelixCode® GNOME available on CD-ROM, and KDE pre-installed on the laptops.

Supporting Linux Solutions
IBM is demonstrating the Linux Application Environment running on NUMA-Q servers at the company's Linux World booth (1724). The Linux Application Environment on NUMA-Q servers features advanced scalability, availability and management for high-powered Web environments. NUMA-Q customers will be able to easily deploy Linux applications in a scalable environment.

Executing its strategy to offer customers Linux solutions for all its servers, IBM announced a new Linux feature for its Netfinity server that brings the functionality of mainframe technology to its PC Servers -- X Architecture. IBM and SuSE are also announcing that SuSE Linux® will be available pre-loaded on Netfinity servers, making Netfinity Linux bundles and preloads available from all four major Linux vendors.

IBM also extended its dedication in the Linux systems market with the introduction of pre-packaged Linux cluster offerings for high performance computing, web-serving and other demanding workloads. The new IBM Solution Series for Linux Clusters uses IBM Netfinity servers, services and software as well as open source components and third party products to deliver scalablity and manageability at competitive prices.

IBM is also introducing Linux support in VisualAge® Micro Edition for building embedded Java applications on Linux platforms. Through an agreement with MontaVista Software, Inc., customers can create and deploy connected pervasive solutions on embedded Linux devices.

Helping Build the Open Standard
IBM has been working closely with the open source community, contributing technologies and resources. Today's open source news includes:
Releasing Omni Printer Driver for Linux, a print system architecture containing more than 100 printer drivers -- doubling the number of printer drivers that will be made available free to the Linux community.

Providing performance and benchmark results of the Linux 2.2.14 kernel and the Linux 2.3.99 kernel that demonstrate increased scalability for Web serving in the upcoming Linux 2.4 kernel.

Contributing a tool (Dynamic Probes) that will help debug difficult problems, particularly those that occur during high activity in complex environments.

About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM creates, develops and manufactures the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. The fastest way to get more information about IBM is through the IBM home page at http://www.ibm.com.

Netfinity, NetVista, NUMA-Q, ThinkPad, DB2, Domino, Tivoli Framework, and VisualAge are trademarks or registered trademarks of International Business Machines Corporation and/or its subsidiaries.
Linux is a registered trademark of Linus Torvalds.
Java and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries.

IBM and Red Hat collaborate to deliver e-business software solutions for Linux

IBM and Red Hat to Market, Distribute and Support Bundled Offerings

SAN JOSE - 15 Aug 2000: -- IBM Corporation (NYSE: IBM) and Red Hat, Inc. (NASDAQ: RHAT) today announced an agreement that will enable, for the first time, a commercial Linux* developer to bundle all of IBM's Linux-based software into e-business solutions.

The agreement is unique for both companies in two respects:

• This marks the first time that Red Hat and IBM will embrace and promote each other's Linux offerings providing both enterprise and small-business solutions for its customers worldwide.
• Through a first-of-a-kind comprehensive marketing agreement, IBM and Red Hat will jointly fund marketing and channel recruitment and enablement efforts focused on IBM/Red Hat solution bundles for the worldwide Linux market.

Initially, Red Hat will sell Red Hat Linux and Red Hat services bundled with IBM software such as DB2, WebSphere Application Server, Lotus Domino and the IBM Small Business Pack for Linux. The agreement allows Red Hat to use any IBM, Lotus or Tivoli software available on Linux in future solutions. These complete e-business and Internet solutions will be available through Red Hat's online marketplace at redhat.com, beginning September 1, 2000. IBM and Red Hat will work jointly to enable channel partners to sell these solutions. Additionally, IBM intends to sell these same solutions through its "ShopIBM" Web site.

The announcement extends and strengthens the relationship between Red Hat and IBM that began in early 1999, when IBM led the industry in announcing support for Red Hat Linux. Since then, the two companies have worked closely on several projects designed to advance the adoption of Linux and open source software.

"The past year has seen an accelerating pace of development that signals wide customer acceptance of open source software and Linux into mainstream computing," said Matthew Szulik, chief executive officer, Red Hat, Inc. "This agreement is perhaps one of the most significant developments so far. IBM is the gold standard for computing. With Red Hat and IBM working together to develop and market e-business solutions for Linux in enterprises around the world, and with IBM now selling Red Hat Linux with its products, it's clear that open source software is fully capable of handling critical business computing needs."

Linux Momentum

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

Research firm Netcraft, Inc. (www.netcraft.com) states that as of May 2000, 30 percent of all public Web sites run on Linux-based operating systems, making Linux the most popular choice for deploying public Web sites. IDC research shows 40 percent of all spending on Linux servers is for Internet-related applications, firmly entrenching Linux servers in the Internet infrastructure.

About Red Hat, Inc.
Founded in 1994, Red Hat is the leading provider of open source Internet infrastructure solutions, ranging from small embedded devices to high availability clusters and Web serving. 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, Inc. is based in Research Triangle Park, N.C. and has offices worldwide. Visit Red Hat on the Web at www.redhat.com  For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. The fastest way to get more information about IBM is through the IBM home page at http://www.ibm.com. Information on IBM's Linux offerings is available at www.ibm.com/linux

* Indicates trademark or registered trademark of Linus Torvalds.
** Indicates trademark or registered trademark of Red Hat, Inc.
*** Indicates trademark or registered trademark of IBM Corporation and/or its subsidiaries

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.