In Affiliation with CNET, Inc.

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 RESEARCH TRIANGLE PARK, N.C.—June 28, 2000—Red Hat®, Inc. (NASDAQ:RHAT), the leading provider of open source solutions for Internet infrastructure, today announced the Red Hat University Program, a global program designed to use Red Hat's comprehensive resources to accelerate the use of open source solutions in the educational environment. Under the direction of the University Program, an initial donation of over $350,000 in open source software and tools, including GNU Pro Dev Kits and Code Fusion packages, has been made to the following universities: California Institute of Technology, Columbia University, Georgetown University, University of California at San Diego, University of Chicago, University of North Carolina, University of Washington; and the University of Alberta, the University of Toronto and the University of Waterloo, all in Canada.

The Red Hat University Program is designed to help universities build out their internet infrastructure with open source and expand universities' teaching and development resources. Said Georgetown Computer Science chairman, Mahendran Velauthapillai, "The teaching and research we already do with Red Hat Linux has been hugely successful. Red Hat's generous donation will help us expedite our switch to open source software."

"Until now, we didn't really have a way of responding to the worldwide interest from universities, although we have been involved with universities in a less formal way for some time," said Emily Forster, Red Hat University Program Director. "With this Program, Red Hat delivers a formalized process to be able to meet the demand and interest in open source solutions at universities worldwide, and we believe that this support is instrumental in the growth of open source adoption globally."

Whether in an administrative, educational, or research-oriented capacity, Red Hat seeks to provide various open source software and products to educational institutions interested in utilizing open source technologies. Universities may apply via email for the opportunity to participate in the Red Hat University Program at http://www.redhat.com/apps/community/university/index.html. In addition, any inquiries regarding the University Program may be directed to education@redhat.com.

Open Source Momentum

International Data Corp. (IDC) research states that paid Linux shipments grew faster than any other server operating system over the past two years, and their preliminary figures for 1999 show Linux shipments hold 24.6 percent of the server operating system market, up from 15.8 in 1998. IDC also states that Red Hat Linux is by far the most popular distribution, preferred by 68.7 percent of U.S. Linux users.

Research firm Netcraft, Inc. (www.netcraft.com), states that as of May 2000, 36 percent of all public Web sites run on Linux-based operating systems, making Linux the most popular choice for deploying public Web sites. IDC research shows 40 percent of all spending on Linux servers is for Internet related applications, firmly entrenching Linux servers in the Internet infrastructure.

Finally, IDC predicts that by 2002, there will be more than 55 million handheld and notebook-style information appliance devices and that by 2005, shipments of these appliances will exceed shipments of PCs.

Red Hat's numerous alliances with industry leaders and the demand for Linux-based applications has created open source support from many of the industry's leading software and hardware manufacturers, including Compaq, Computer Associates, Dell, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle and SAP.

About Red Hat, Inc.

Founded in 1994, Red Hat (Nasdaq:RHAT), is the leading provider of open source Internet infrastructure solutions, delivering on the promise of open source from small embedded devices to the most prodigious enterprise. Red Hat applies its technological leadership to create open source solutions for Internet infrastructure and post-PC environments, offers services backed by the best understanding of open source and the most comprehensive resources, delivers the brand of a widely trusted open source leader and corporate partner, and persists in an indelible commitment to the virtues of open source to lead a revolution in the computing industry.

Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. Visit Red Hat on the Web at www.redhat.com. For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

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, product plans and performance, the ability to continue to develop the Linux kernel and other software, reliance upon strategic relationships, Red Hat's dependence upon an open source business model, reliance upon independent third-party Linux developers, management of growth, expansion of Red Hat's business focus and operations, the possibility of undetected software errors, the enforceability of the GNU General Public License and other licenses under which Red Hat's products are developed and licensed, the scarcity of Linux-based applications, 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.

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.