February 27, 2001

Red Hat acquires Planning Technologies, Inc.

Author: JT Smith

Red Hat, Inc. announced today that it has acquired Planning Technologies, Inc. Here's the press release:
For Immediate Release

For more information:
Melissa London				   Bryan Scanlon/Dave Close
Red Hat, Inc.					Schwartz Communications for Red Hat
(919) 547-0012				       (781) 684-0770
melissa@redhat.com		        redhat@schwartz-pr.com


RED HAT ACQUIRES PLANNING TECHNOLOGIES, INC.

Acquisition of Professional Consulting Service Adds to Red Hat?s Global
Capabilities For End-to-End Open Source Solutions

RESEARCH TRIANGLE PARK, N.C.--February 27, 2001--Red Hat, Inc.
(Nasdaq:RHAT), the leader in developing, deploying and managing open source
solutions, announced today that it has acquired Planning Technologies, Inc., an Atlanta-
based professional consulting service company that specializes in infrastructure
consulting for a wide array of clients, including enterprise, service providers and
government.

Planning Technologies, Inc. has over 200 professional engineers and consultants. More
than 60 percent of the staff has more than 10 years of technical experience and the
company has a proven methodology for helping customers develop, deploy and manage
network architecture. PTI clients include AT&T, Nationwide Insurance, Home Depot,
Delta Airlines, BellSouth and a variety of government agencies. This acquisition
continues Red Hat?s business strategy to offer a complete open source solution for
software, from devices to mainframes, and a full range of global services with Red Hat
Network as the backbone for deployment and management.

"Customers around the world have been looking to Red Hat as the global leader in open
source solutions to help them develop and deploy open source throughout their Internet
infrastructure," said Matthew Szulik, president and CEO, Red Hat, Inc. "This acquisition
adds to Red Hat?s complete continuum of open source solutions and delivers customers
the front-end professional consulting services needed to make informed buying and
deployment decisions about their network infrastructure."

"Red Hat has a tremendous vision, expertise and market lead as the platform for a new
generation of Internet and post-PC solutions," said Jake Sanchez, CEO, Planning
Technologies, Inc. "We are very excited to be able to leverage Red Hat?s unique
spectrum of open source solutions in providing even more comprehensive solutions for
our customers."

The acquisition of PTI was made through a stock for stock exchange valued at $47
million and accounted for as a pooling of interests.

Red Hat, Inc.

Red Hat (Nasdaq:RHAT) offers users one single, trusted point of contact and a common
platform for developing, deploying and managing open source across Internet
infrastructure and devices that connect to the Internet, ranging from small embedded
devices to high availability clusters and integrated Web server/e-commerce OSes. And
the Red Hat Network, Red Hat?s unique management technology, helps companies worldwide
easily manage it all by delivering open source products, service, support and
information on-line in real-time.

In addition to the award-winning Red Hat Linux server operating system, Red Hat offers
Stronghold Secure Web Server, Interchange and Credit Card Verification Software for
secure e-commerce, and is the principal provider of GNU-based developer tools and
support solutions for a wide variety of embedded processors. Red Hat also provides run-
time solutions such as Linux, eCos, Red Hat Embedded, the award-winning RedBoot,
custom engineering services, support and training to organizations in all embedded and
Linux markets.

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, 919-547-0012.

About Planning Technologies, Inc.

Headquartered in Atlanta, PTI is a rapidly emerging network business consulting firm
that focuses on assisting its clients with the building of their network infrastructure. PTI?s
world-class consulting and engineering practices focus on enterprise clients, both
commercial and government as well as Communications Service Providers. Since its
founding in 1992, PTI has grown to more than 200 employees, including more than 180
professional engineers and consultants, sixty percent of whom have more than 10 years of
internetworking experience. For more information about PTI, visit
www.planningtech.com

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, Red Hat?s ability to effectively integrate the operations of Planning
Technologies; Red Hat?s ability to retain Planning Technologies? traditional customers;
Planning Technologies? inexperience in offering professional consulting services to
Linux customers; Red Hat?s lack of experience in managing a large, geographically
dispersed, professional services organization; 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
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