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Red Hat Expands Into India; New Operation in India Strengthens Red Hat's Offerings to Customers in India, Sri Lanka, Nepal and Bhutan.

Business/Technology Editors

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Nov. 9, 2000

Red Hat, Inc. (Nasdaq:RHAT), a leader in developing, deploying and managing open source Internet infrastructure, today announced that it has joined forces with Clover Technologies Pvt. Limited to open Red Hat India Pvt. Limited. This joint venture will deliver Red Hat software, support and services to customers in India.

Commenting on this joint venture, Javed Tapia said: "India has traditionally been a strong UNIX market and Red Hat is the most widely used Linux distribution. The opening of this office comes at a time when demand for Linux among businesses in this marketplace is rapidly increasing. We will now be able to provide customers with the entire range of Red Hat solutions on a regional basis."

Colin Tenwick, vice president and general manager of Red Hat EMEA added: "The opening of this office is in response to the rapid adoption of Red Hat Linux in the subcontinent. India is one of the leading software development countries in the world. Demand for open source solutions from the Indian markets is rising and Red Hat wants to play a major role in this region. We are extremely pleased to be able to offer this marketplace a complete range of Red Hat solutions and support."

About Clover Technologies

Founded in 1992 by Javed Tapia, an MBA from Duke University, Clover Technologies Pvt. Ltd. (CTPL) is an established Indian software house providing Strategic Business Solutions in the areas of Linux, Oracle and Internet/E-commerce. Its focus on delivering timely quality solutions using innovative and flexible delivery models, such as the lab-on-hire, has enabled it to build a loyal global customer base.

Its penchant for solving complex business issues using technology is demonstrated by it being one of the first companies to offer complete Oracle services on Red Hat Linux and the successful implementation of solutions using front line technologies, especially in the Internet/E-commerce domain.

About Red Hat, Inc.

Founded in 1994, Red Hat (Nasdaq:RHAT), is the leader in development, deployment and management of Linux and open source solutions for Internet infrastructure ranging from small embedded devices to high availability clusters and secure Web servers. In addition to the award-winning Red Hat Linux server operating system, Red Hat is the principle provider of GNU-based developer tools and support solutions for a wide variety of embedded processors. Red Hat provides run-time solutions, developer tools, Linux kernel expertise and offers support and engineering services to organizations in all embedded and Linux markets.

Red Hat applies its technological leadership to create open source solutions for all points on the Internet and in pervasive computing environments, offers services backed by the best understanding of open source and the most comprehensive resources, and delivers the brand of a widely trusted open source leader and corporate partner. Red Hat offers users one single, trusted point of contact and a common platform for developing, deploying and managing open source across the Internet and devices that connect to the Internet.

Red Hat Europe was established in July 1999 with its European headquarters based in Surrey, United Kingdom and offices throughout Europe. Red Hat Linux is sold and supported through a number of major distribution and industry partners throughout Europe and from www.europe.redhat.com/shop.

Red Hat Linux was named InfoWorld's Product of the Year for four 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 the Linux Journal and Australian Personal Computing magazines, and won the `Just Plain Cool' award from Australian Personal Computing magazine. At March's LinuxWorld Expo, more than 8,000 members of the Linux community voted Red Hat a `LinuxWorld Favourite.' Red Hat Linux recently won a Product Excellence award from Software Development Magazine.

LINUX is a trademark of Linus Torvalds. RED HAT is a registered trademark of Red Hat, Inc. UNIX is a registered trademark of The Open Group. All other names and trademarks are the property of their respective owners.

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, Red Hat's entry into new markets with no established acceptance for Red Hat's services, operating through a joint venture entity with no prior operating experience with Red Hat's joint venture partner, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through SEC's Web site at www.sec.gov.
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Date:Nov 9, 2000
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