RALEIGH, NC—September 30, 2002—Red Hat, Inc. (Nasdaq:RHAT) today released Red Hat Linux 8.0, a highly versatile operating system designed for personal and small business computing. Red Hat Linux 8.0 combines leading-edge Linux technologies with a new graphical look and feel that offers users a polished, easy-to-use operating environment.

"Red Hat Linux 8.0 is the perfect choice for small businesses and enthusiasts looking for a reliable, easy-to-use operating system with the latest productivity applications," said Paul Cormier, executive vice president of Engineering, Red Hat. "This is a major step forward for users of traditional operating systems who have been looking for an easier-to-use, more versatile open source solution."

Red Hat Linux 8.0 delivers enhanced productivity tools and an updated graphical interface that combine to create an easy-to-use operating environment for today's personal and professional users. Key features of the latest release include:

New Red Hat BluecurveTM: Conveniently organized, user-friendly desktop with numerous graphical enhancements and icons.

OpenOffice.org: Most advanced open source office suite.

Robust suite of configuration tools: Tools to set up configurations for several system services and settings, including firewall, peripherals, Apache, Samba, and small network settings.

Personal firewall tool: Graphical tool to easily customize your security settings.

Red Hat Network integration: Point-and-click utilities to monitor and integrate existing updates for your system.

Upgraded core components: Updated C compiler, toolchain, and kernel deliver the latest Linux technologies.

Web server powered by Apache 2.0: Powerful, flexible, secure open source Web server that powers the Internet.

New accessibility features: GUI support for Braille and mobility-limited language interfaces.

"With this release we have given more attention than ever before to usability", said Erik Troan, senior director of product marketing at Red Hat. "Red Hat Linux 8.0 demonstrates that we can deliver great new functionality for hobbyists and professionals and at the same time make the product much more friendly for mainstream users."

For a complete overview of all Red Hat Linux 8.0 features and benefits, please visit us on the Web at www.redhat.com.

Pricing and Availability

Red Hat Linux 8.0 is available at retail locations on September 30, 2002, and orders are currently being taken online at www.redhat.com.

Red Hat Linux 8.0 Personal for individual users has a MSRP of $39.95, and includes 30 days of Red Hat Network Basic Service and Web-based support.

Red Hat Linux 8.0 Professional has an MSRP of $149.95, and includes a System Administrator's CD, an Office and Multimedia Applications CD, 60 days of Red Hat Network Basic Service, 60-days of Web-based support and telephone support.

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.

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.