Red Hat Linux 7.1 With 2.4 Kernel Available for Compaq Alpha Server Systems

Red Hat and Compaq to Deliver Latest Version of Leading Open Source Operating System for the Alpha Platform

Research Triangle Park, NC—June 21, 2001—Red Hat, Inc., the leader in developing, deploying and managing open source solutions, announced today the availability of Red Hat Deluxe for Compaq Computer Corporation's AlphaServer systems.

"Compaq's expanding commitment to Red Hat Linux illustrates the growing momentum for open source and Internet solutions," said Paul Cormier, VP of Engineering, Red Hat, Inc. "The combination of Compaq's powerful server and workstation solutions and Red Hat Linux delivers Internet and enterprise computing to our customers."

``Compaq is the number one supplier of Linux systems, giving customers the broadest range of robust, industry leading platforms to implement Linux solutions," said Gary Campbell, vice president and chief technical officers, enterprise servers. ``Red Hat's new Red Hat Linux 7.1 offers Compaq Alpha users new levels of performance and reliability to meet the computing needs of our customers worldwide.''

Red Hat Deluxe for AlphaServer systems is part of Red Hat's complete family of open source solutions for today's Internet economy--including e-commerce servers with Stronghold Apache and the growing number of embedded, Internet-enabled devices. Red Hat Linux 7.1 includes the new 2.4 kernel with improved SMP support for superior performance. Red Hat Linux 7.1 also delivers new configuration tools that enable users to effortlessly set up and administer DNS, Web and print servers. This release features Red Hat Network connectivity, including software manager.

Red Hat Linux 7.1 Open Source Operating System for Compaq AlphaServer systems
Red Hat Linux 7.1 is the latest major edition of the award-winning open source operating system. It provides the open source flexibility, scalability and manageability necessary to bring the most ambitious Linux initiative under the control of an integrated Internet computing platform. Important new capabilities provided by Red Hat Linux 7.1 include:

• 2.4 Kernel positions Red Hat Linux as an enterprise class operating system. It provides significantly improved multiprocessor support, eliminates PCI bus limit, makes virtual memory effectively limitless, supports greater number of users and groups, includes revised scheduler to handle more processes, carries increased and improved device support, as well as an improved multi-threaded network stack.
• Red Hat Network Software Manager delivers Errata Alerts so users are automatically notified of new Errata and RPM updates that provide notification of new RPM packages.
• Heightened Security delivers secure default settings that keep ports closed and Internet utilities inactive until needed. A new firewall screen enables user to turn on or off as many features as desired for totally customized security.
• Configuration tools make system administration easier than ever with BIND (DNS), Apache and Print tool.
• Installer enhancements improve the user experience by providing a graphical Kickstart configuration tool for unattended installation.
• Desktop Functionality includes updated GNOME & KDE, popular graphical environments where users can choose their preferred desktop, and Mozilla, a Web browser, email client and news reader that provides a complete open source Web and messaging client.
• XFree86 4.0.3 interface supports 2D and 3D graphics.
• New 200-page Customization Guide

For a complete list of new features, visit: http://www.redhat.com/products/software/linux/7-1_alpha.html

Red Hat Deluxe for AlphaServer systems (in USD) and Availability
Red Hat Deluxe for AlphaServer systems is priced at $99.95 and is available from redhat.com and through select North American retail outlets.

Red Hat Network is available to all users Red Hat Linux 7.1, including Red Hat Deluxe for Alpha Server systems. For more information, see http://www.redhat.com/network/.

About Red Hat, Inc.
Red Hat is the leader in developing, deploying and managing solutions built on the benefits of an open source platform. These solutions include an open source product platform for devices to mainframes, a complete end to end set of Professional Services, and the Red Hat Network as the Internet-based backbone for deployment and management of the products and services. Red Hat's open source platform includes the award-winning Red Hat Linux operating system platform, the Interchange e-Commerce platform, Stronghold Secure Web Server, Credit Card Verification software, High Availability Server, GNU-based developer toolkit for embedded development, and embedded run-time Linux, eCOS, and RedBoot solutions.

Red Hat backs up their open source offerings with end-to-end services that include Red Hat Professional Consulting focused on multiplatfom infrastructure and engineering services, Red Hat Engineering services for software development and porting of the operating system and for embedded platforms and devices, Red Hat Enterprise support services for installation services and web and telephone support, and Red Hat Learning services for Linux certification (RHCE) and courses for Apache, Embedded systems, Advanced Developer, and e-Commerce. Red Hat Network provides Red Hat's unique managed services capability to deploy and manage open source products, services, support and management information on-line in real-time to more cost effectively and reliably maintain open source based solutions.

Red Hat is headquartered in Research Triangle Park, N.C. and has offices worldwide. Please visit Red Hat on the Web at http://www.redhat.com/index.html. For investor inquiries, contact Gabriel Szulik at Red Hat, 919-547-0012.

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 assessment of the market for embedded devices, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, Red Hat's ability to service the embedded device market, 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/.

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