April 16, 2001

Red Hat announces 7.1 with 2.4 kernel

Author: JT Smith

"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
For Immediate Release

For more information:
Melissa London                             Scott MacKenzie/Maribel Lopez
Red Hat, Inc.                                    Schwartz Communications for Red Hat
(919) 547-0012                                 (781) 684-0770
melissa@redhat.com                         redhat@schwartz-pr.com


Kernel Update Adds Functionality and Unique Red Hat Network Software Manager
Increases Reliability While Reducing the Cost and Effort Required to Deploy and
Manage Internet Infrastructure

RESEARCH TRIANGLE PARK, N.C.--April 16, 2001--Red Hat, Inc.
(Nasdaq:RHAT), the leader in developing, deploying and managing open source
solutions, announced today the availability of Red Hat Linux 7.1, the latest version of the
world?s most popular open source server operating environment. Red Hat Linux 7.1
includes the new 2.4 kernel with improved SMP support for superior performance on
Intel multi-processor platforms. 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 is firmly embedded in today?s computing infrastructure. The release of
Red Hat Linux 7.1 and the first in a series of Red Hat Network subscription services
makes it easy for organizations to quickly realize the benefits of open source computing,"
said Matthew Szulik, CEO of Red Hat, Inc. "The elements of Red Hat Linux 7.1 work
together to deliver the most powerful, automated open source operating system for fast-
growing enterprise and Internet infrastructure users."

According to IDC Research, Linux is the second fastest growing server operating system
(from 1999-2000).

New Features and Benefits of Red Hat Linux 7.1

--2.4 Kernel positions Red Hat Linux as an enterprise class operating system. It
provides significantly improved multiprocessor support and support for 4GB userland
process, eliminates PCI bus limit, makes virtual memory effectively limitless,
supports 64 GB of physical RAM, 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

--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 and a new install class for
laptop users.

--Increased internationalization supports global user communities with a fully
translated GNOME interface in Japanese, Spanish, French, German and Italian.

--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.

--USB support for "hot pluggable" devices

--New 200-page Customization Guide

--TUX - world?s fastest web server¹

Holds SPECweb99(TM) benchmark records for 1, 2, 4 and 8 processor machines.¹

For a complete list of new features, visit:

Widespread Industry Adoption

Red Hat has partnered with industry leaders to provide its customers with the best
solutions for Internet computing.  Dell and IBM, leaders in the hardware space, continue
to embrace Red Hat Linux.

"Dell continues to see growing demand for powerful servers, workstations and notebook
computers running Red Hat Linux backed with Red Hat?s industry-leading support," said
Rick Hoffman, director and general manager of Linux Development, Dell Enterprise
Systems Group.  "Red Hat Linux 7.1 offers our enterprise customers the scalability,
performance and power they have been waiting for in their Linux-based infrastructures.
Our direct model and global factory install process will allow us to be one of the first
major systems manufacturers to ship Red Hat Linux 7.1 directly to customers--with no
middleman required."

"With the scalability enhancements in the new 2.4 kernel, Red Hat is delivering the most
robust version of Linux to date," said Dick Sullivan, vice president, Solutions and
Integration Marketing, IBM Software.  "When coupled with the proven enterprise
capability of IBM?s server and software products, including DB2 Universal Database,
WebSphere Application Server, Lotus Domino and the xSeries eServer running Red Hat
Linux 7.1 today, customers and solution providers should see an increase in overall
performance to complement Linux?s cost and reliability advantages."

Pricing (in USD) and Availability for Red Hat Linux 7.1

Red Hat Linux 7.1 is available in three versions; all include the Red Hat Linux operating
system, installation manual, support and Red Hat Network. Red Hat Linux Deluxe and
Professional versions include productivity applications (some trial versions and some
full), StarOffice Office Suite, Loki Games CD and user guides. The versions are:

--Standard:  30 days Web-based support and 30 days Red Hat Network Software
Manager for 1 system. Pricing: $39.95.

--Deluxe: 60 days of Red Hat Network Software Manager for up to 5 systems and 60
days of telephone and Web support. Pricing: $79.95.

--Professional: 90 days of Red Hat Network Software Manager for up to 10 systems
and 90 days of telephone and Web support.  Red Hat Linux 7.1 Professional also
includes support for Software RAID Configuration and Apache and BIND
configuration. Pricing: $179.95.

All versions are available for order immediately from redhat.com and through retail
outlets worldwide beginning April 24.

Red Hat?s comprehensive services and support organization round out an enterprise
solution that delivers the tools and performance necessary to translate the promise of
open source into high-value, scalable Internet infrastructure implementations.

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 multi-platform 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 www.redhat.com. For investor inquiries, contact
Gabriel Szulik at Red Hat, 919-547-0012.

# # #

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 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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