Red Hat Expands Open Source Portfolio With Introduction of Red Hat Database.

Business/Technology Editors

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--June 25, 2001

Market Leader to Target Underserved Mid-Market with More Cost

Effective Database for Workgroups, Departments and E-Business

Applications

Red Hat, Inc. (Nasdaq:RHAT), the leader in developing, deploying and managing open source solutions, today announced Red Hat Database. The Red Hat Database product is an open source database solution, based on PostgreSQL 7.1, and optimized with Red Hat Linux 7.1, for mid-sized organizations and corporate workgroups and departments.

Red Hat Database is designed to meet the growing customer demand for reliable and more cost effective databases for e-business applications. It bridges a gap in the Linux database market between large enterprise databases that require specialized IT skills and resources and smaller, less capable databases that are affordable, but not sophisticated enough for complex Web and e-business applications.

"With Red Hat's entry into the database market, we continue to expand the opportunity for customers to build more flexible and maintainable systems based on the benefits of open source technology," said Dr. James Neiser, Chief Marketing Officer of Red Hat, Inc. "In many cases, customers simply do not need the power, features or expense of a large, complex enterprise database. But to be successful, they do require sufficient functionality, reliability, scalability and a well-supported solution."

"We are very excited that Red Hat is offering a single solution for both operating system and database support. We are confident that with Red Hat's technical leadership and product quality, we can be more successful in our current markets and reach new markets created by open source innovations," said Mark Lucas, Chief Technical Officer of ImageLinks, a company that processes large satellite and aerial images for businesses.

"Many organizations are seeking solutions, not toolkits," said Dan Kusnetzky, IDC's Vice President of System Software Research. "Red Hat, by packaging Linux as a database server, would certainly make open source software more attractive to organizations needing solutions." IDC predicts that worldwide relational and object relational database revenues on Linux and other open source platforms will grow from $42 million in 2000 to $7.8 billion in 2005.

Red Hat Database includes:

-- Red Hat Installer, and enhanced documentation for PostgreSQL 7.1 and Red Hat
Linux 7.1, enables organizations to quickly and easily install the solution.

-- Robust transaction support for intensive computing environments.

-- Advanced locking capabilities, to ensure integrity of database updates and
changes.

-- Industry standard compliance, including core SQL 92 support, ODBC & JDBC
APIs for broad application integration and compatibility.

-- Support for object-oriented features, such as large objects, structured
types and user-defined abstract data types (ADT) for flexibility.

-- Multiple programming language support, including C/C++, PHP, Perl, Python,
Tcl/Tk, Embedded SQL (in C) for compatibility and flexibility.

-- Online backup for availability and recovery of data.

Pricing and Availability

Red Hat Database is available as an annual subscription beginning at $199 per month or for a one-time charge of $2295. It includes Red Hat Database 7.1, Red Hat Linux 7.1, software CDs, documentation, Web and telephone installation support. It also includes Red Hat Network support and product updates. A variety of additional support offerings are available. Red Hat Database is available directly from Red Hat at 866-2REDHAT and on the Web at www.redhat.com/databasesolution.

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 that provides the only common, globally available, and award winning Linux operating system from mainframes to embedded devices, an e-Commerce platform, Database, Secure Web Server, High Availability Server, and embedded Linux, eCos, and GNU-based developer toolkit for embedded devices. Red Hat backs up their open source offerings with end-to-end Red Hat Professional Services that include Professional Consulting, Engineering services, Enterprise Support services and Learning services. This is all brought together with Red Hat Network as the Internet-based backbone for deployment and management of products and services for Linux based infrastructures.

Red Hat is headquartered in Research Triangle Park, N.C. and has offices worldwide. Please visit Red Hat on the Web at www.redhat.com. For investor inquiries, contact Gabriel Szulik at Red Hat, [phone].

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.

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, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, 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.