Red Hat Formally Announces 'Integrated Virtualization'; AMD, Intel, Network Appliance and XenSource Join Red Hat to Ensure Customers Receive the Full Benefits of Virtualization, from Red Hat's New Software and Tools to the Chipset.

SAN FRANCISCO -- Red Hat (NASDAQ: RHAT), the world's leading provider of open source solutions to the enterprise, today formally announced its 'Integrated Virtualization' strategy. During a launch today in San Francisco, company executives detailed plans for creating a Red Hat virtualization environment and working with partners such as AMD, Intel, Network Appliance and XenSource to simplify virtualization deployment for customers. Red Hat announced it will support customers and partners with tools, services and technology previews that let customers deploy computing resources at the lowest possible cost while maximizing utilization of each resource over the long term.

"Conservative estimates show that servers typically operate at between 15 and 25 percent of CPU capacity, but with virtualization that could improved to 80 percent," said Brian Stevens, CTO at Red Hat. "Our customers, who already see Red Hat Enterprise Linux as the choice for lower cost of ownership, will be able to ride this next wave of virtualization to further reduce costs and increase operational efficiency. Red Hat's strategy is to methodically target and reduce every cost driver associated with deploying IT infrastructure, we believe integrated virtualization will be a major milestone in this effort."

Integrated Virtualization

Red Hat will tightly integrate virtualization capabilities with its operating system and ensure all aspects of the Red Hat Enterprise Linux platform, from management tools and installation to software management, will enable customers to deploy virtualized environments easily and effectively. Consistent with Red Hat's open source model, the company will provide seamless integration and support for the Xen virtualization technology developed by the open source community. Specific details of the integrated virtualization initiative include:

--A complete platform to implement server consolidation, reducing costs and improving service levels.

--A comprehensive development and QA environment, which allows developers to substantially reduce the time and complexity of writing and testing code on diverse target systems

--Support for hardware abstraction, which allows IT managers to reap the benefits of the latest hardware using existing software stacks, without the expense of extensive qualification and migration processes.

Product Roadmap

This month Red Hat will make Fedora Core 5 available, which will contain a preview of Red Hat Enterprise Linux virtualization technology. In the summer of 2006, Red Hat will make Virtualization Migration and Assessment Services available along with an Enterprise Virtualization beta. Red Hat Enterprise Linux v. 5, scheduled for general availability by the end of 2006, will feature fully integrated virtualization.

"By the end of this year the integration of Xen into Red Hat Enterprise Linux will result in several important customer benefits, including better support for consolidation; more flexible lifecycle management; and improved workload management and availability, said Tony Iams, Vice President of System Software Research at Ideas International, Inc. "Further, by making Xen a pervasive part of its Linux distribution, Red Hat will drive virtualization deeply into the mainstream."

Integrated Partnerships

AMD and Intel are working closely with Red Hat in its development and test labs to ensure their virtualization-enhanced chipsets are tightly integrated with the 'Integrated Virtualization' environment initiative. This tight integration will give Red Hat Enterprise Linux customers maximum software and hardware performance, as well as enabling support for legacy Red Hat Enterprise Linux releases running on upcoming releases of Red Hat Enterprise Linux. Network Appliance's participation will ensure seamless integration with their storage solutions. The development relationship between Red Hat and XenSource will ensure Red Hat Enterprise Linux status as being best-in-class, including the enablement of XenSource management tools.

"Virtualization, a technology with it's roots in mainframe computing, is expected to bring new levels of performance, security and utilization to x86 systems, designed to delivering measurable business value to our customers," said Joe Menard, Corporate Vice President, Software Strategy, AMD. "As part of our ongoing efforts to collaboratively support the adoption of virtualization technology across our broad ecosystem, we are working with Red Hat to tightly integrate virtualization as a core technology in its Linux offerings, with full support for the AMD64 architecture and its hardware-enabled technology. This is what our customers are asking for, and we expect they will be very happy with the combination of Red Hat Integrated Virtualization on AMD64-based platforms."

Intel Virtualization Technology builds support for virtualization into the processor and chipset, helping accelerate industry innovation, and enhancing manageability, ease of use and security on server and client platforms. "Intel and Red Hat have a strong collaboration rooted around supporting customers in their advanced deployments of Linux and open source, and Virtualization is a key focus of that collaboration," said Richard Wirt, corporate vice president and general manager of Intel's Software and Solutions Group. "We have worked together so that the capabilities of Intel Virtualization Technology will be fully realized all the way through the Red Hat operating system. This collaboration is an example of our continued joint efforts to bring innovation to the IT industry."

"The integration of server and storage virtualization strategies ushers in a new era of application lifecycle management," said Patrick Rogers, vice president of Products and Partners at Network Appliance. "It delivers on the promise of grid or utility computing - reducing capital and operational expenditures through consolidation and improved resource utilization, and delivers a more responsive, agile IT environment." "XenSource and its powerful community of developers, distributors and partners is unified in its commitment to making Xen the de-facto, open industry standard for cross-platform virtualization," said Peter Levine, CEO of XenSource. "Our partnership with Red Hat will deliver to enterprise customers all of the benefits inherent in Xen's paravirtualization technology, tightly integrated with Red Hat Enterprise Linux. The resulting product will deliver the performance, robustness and security that enterprises demand for virtualized production workloads, taking advantage of hardware virtualization technologies in the latest Intel and AMD platforms."

Integrated Relationships with Customers and Developers

Red Hat's history of letting customers actively participate in the evolution of Red Hat Enterprise Linux continues with its integrated virtualization initiative. Red Hat is including customers in the development process, providing them with tools, services and early technology previews to accelerate their time to value realization.

For more information on Red Hat Integrated Virtualization please visit http://www.openvirtualization.com.

About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. The most trusted name in open source, CIOs and other senior-level IT executives have ranked Red Hat as the industry's most valued vendor for two consecutive years in the CIO Insight MagazineVendor Value study. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com

Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for the company, including statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the factors discussed in our most recent Annual Report on Form 10-Q filed with the SEC (a copy of which may be accessed through the SEC's website at http://www.sec.gov), 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 and the viability of the Internet. In addition, the forward-looking statements included in this press release represent the company's views as of the date of this press release and these views could change. However, while the company may elect to update these forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date of the press release.