Red Hat, Inc. (Nasdaq:RHAT) today released Red Hat Linux version 7.3, a highly configurable operating system (OS) designed for deployments ranging from games and personal productivity to file, print and Web serving. Red Hat Linux 7.3 adds new productivity tools, personal firewall configuration at installation, and video conferencing software to deliver everything individual users, educational institutions and small businesses need for flexible Internet-based computing.

The new version also includes the Linux industry's best support offerings, including Web and telephone access to experts and Red Hat Network--an automated Internet solution for managing Red Hat Linux systems. Nearly 500,000 users already leverage Red Hat Network to keep their systems updated and secure.

"Small businesses and enthusiasts are looking for a combination of performance, ease-of-use and value in their technology infrastructure, which is hard to find with today's proprietary operating systems," said Paul Cormier, executive vp of engineering, Red Hat. "Red Hat Linux 7.3 delivers this through a combination of open source software, support and automated remote services for confident Internet-based computing."

New Features Increase Productivity and Flexibility

Red Hat Linux 7.3 delivers cutting-edge open source technologies, new features and updated core components that increase productivity and provide the flexibility and usability users demand.

Key features include:

-Evolution e-mail client and contact manager;
-MrProject project management software;
-Mozilla Web browser;
-GNOME Meeting video conferencing software;
-Apache 1.3 Web server;
-Firewall configuration;
-PostgreSQL relational database management system; and
-KDE 3.0 and GNOME 1.4 desktops.

For a complete overview of all Red Hat Linux 7.3 features and benefits, please visit us on the Web at

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

Rebates, Pricing and Availability

Red Hat Linux 7.3 is available at retail on May 15 , and orders are currently being taken online at www.redhat.com.

Red Hat Linux 7.3 Personal for individual users has a MSRP of $59.95, which includes 30 days of Red Hat Network Basic Service and Web-based support.

Red Hat Linux 7.3 Professional for small businesses has an MSRP of $199.95, which adds a systems administrator's CD, 90 days of Red Hat Network Basic Service, 60-day Web-based support and telephone support.

Red Hat is also offering competitive and customer upgrade rebates, including $20 off Red Hat Linux 7.3 Professional and $10 off Red Hat Linux 7.3 Personal.

About Red Hat, Inc.

Red Hat is the world's premier open source and Linux provider. Red Hat is headquartered in Raleigh, 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) 754-3700.

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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, 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.

For more information:
Lorien Golaski
Red Hat, Inc.
(919) 754-3700
lgolaski@redhat.com or

Laura Sexton or Brian Willinsky
Schwartz Communications for Red Hat
(781) 684-0770
redhat@schwartz-pr.com