“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
packages.”

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

RED HAT ANNOUNCES RED HAT LINUX 7.1 WITH 2.4 KERNEL

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
packages.

--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:
http://www.redhat.com/products/software/linux/rhl_new_features.html

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
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

“A Journal Filesystem keeps track of all the transactions undertaken. And the lack of a proper journal filesystems has
always been sited as one of the reasons holding back widespread adoption of Linux in the enterprise space. But this
argument no longer holds true, for currently, there are four journal filesystems to choose from — XFS, JFS, ext3 and
ReiserFS. Here we shall look into ReiserFs.” More at FreeOS.com.

FairFaxIT: “Meet Grendel; an old-style computer that takes up a whole room. Billed as Australia’s most powerful publicly available supercomputer, and in the top 100 such machines in the world, it officially started working at the new Victorian Partnership for Advanced Computing in Carlton last week.”

FairFaxIT: “Take the poster child of the open-source rebellion, a company noted for paranoid secrecy to rival the Illuminatus, and a prominent semiconductor developer, and you have a bona fide enigma.”

MSNBC.com tells us: “If Microsoft Outlook 2000 is installed as the mail client with
the Internet Mail Only option turned on, trying to send and
receive e-mail may trigger this error: “Internet Mail is not
registered properly. Please reinstall and try again.” Culprits
include an incorrect version of Inetcomm.dll or an
Outlmime.dll that isn’t registered correctly.”

TheStandard: “The clock is ticking for Napster. On July 1, the
runaway hit that’s given millions of consumers an
easy way to access a virtually limitless selection
of music they otherwise couldn’t – or wouldn’t –
buy from their local record store is scheduled to
be reborn as a for-fee service that pays royalties
to copyright holders.”

LinuxSecurity: “This week, the interesting articles include, “Make SSH do more,” “Tools and Their Signatures, Part One: bind8x.c,” and
“Using Certificate Revocation Lists.” Also, today the i386 version of EnGarde Secure Linux v1.0.1 will be available for
download. Please see EngardeLinux.org to download it.”

ZDNET: “Hewlett-Packard’s endorsement of an application server that uses
open source code holds the promise of saving corporate users big
money.

The Enhydra application server is emerging as another software
building block of open source code – alongside the Apache Web server
and the Linux operating system – around which a company can build
its business.”

ZDNET: “To breathe in the electronic environment of Microsoft’s .Net
imaginings, consumers must first hand their private information over to
Microsoft, and trust the Redmond company to store it securely and
parcel it out judiciously.”

– By Grant Gross
–

It was another bad news week for Open Source business models, at least for one high-profile Linux project. Indrema, which was putting together a Linux-based gaming and Internet console, announced Tuesday it was shutting down the project.

The decision followed several weeks of questions about Indrema being vaporware. NewsForge’s own business columnist, Jack Bryar, commented on what an uphill battle the Indrema dream was. On Wednesday night, after the news had leaked, Indrema officials answered developers’ questions about what was left of the project. NewsForge news editor Dan Berkes was there, and found out that most of Indrema’s existing code won’t be released.

Indrema wasn’t the only Open Source business plan to go through changes this week. Embedded systems company ZF Linux Devices, which had recently changed its name to include the word “Linux” in it, changed its name again this week by taking Linux out. Apparently, fewer of the new ZF Micro Devices’ customers were interested in Linux than the company originally thought.

On the other hand, another report had developer interest
in embedded Linux growing at an “astronomical pace.” From virtually no interest in using Linux in embedded systems in 1999, a survey found 38% of developers considering using embedded Linux for new projects.

Torvalds: I didn’t comment on OS X

News reports last week had Linux creator Linus Torvalds ripping on Mac’s OS X, but the mild-mannered tech genius responded by saying he was misquoted. Frankly, the reports that Torvalds said OS X’s Mach microkernel was a “piece of crap” didn’t sound like the Linus we all know and love (or at least think we know).

Microsoft: We’re more secure

The only surprise should be the audacity of that statement, but Microsoft is really selling its development model as more secure than Open Source. According to Microsoft officials, nobody is reviewing Open Source code for security flaws. I know a couple of Linux security experts who might be offended at being called “nobody.”

New in NewsForge

Stories only in NewsForge this week:

News editor Tina Gasperson reported on some problems IBM created while sponsoring a KDE themes contest. IBM did respond to KDE developer complains and fixed the contest.

Hardware reviewer Jeff Field looked at the 3Com 3C905TX-C network interface card and explained how easy it is to install.

Columnist Julie Bresnick talked to Jeroen van der Zijp about his Open Source FOX GUI toolkit and asked why it kind of looks like Windows.

Happy spring holiday of your choice, everyone.

NewsForge editors read and respond to comments posted
on our discussion
page.