RED HAT NAMED MARKET LEADER IN LINUX SHIPMENTS

August 25, 2000

COMMERCIAL NEWS

Research Triangle Park, N.C. — Red Hat, Inc., a leader in open source Internet infrastructure solutions, announced that International Data Corporation (IDC) has named it the market leader for the second consecutive year in Linux shipments worldwide.

In its “Linux Market Trends: Vendor Market Share and Growth Prospects” bulletin, IDC points out that Red Hat is the undisputed Linux market leader with 52.4 percent of all worldwide Linux server software shipments–more than three times the market share of its nearest competitor. Additional IDC research in “Server Operating Environments Market Forecast and Analysis, 2000-2004,” states that Linux remains the fastest-growing server operating system, with the worldwide installed base of Linux growing at a 35 percent compound annual growth rate (CAGR) between 1999-2004.

“The IDC and other recent surveys provide powerful evidence of Red Hat’s brand and the increasing success of our strategy to provide the full-range of software and services for the open source Internet infrastructure, spanning powerful Web servers to post-PC devices,” said Matthew Szulik, president and CEO of Red Hat, Inc.

“Red Hat has been the leading supplier of Linux software since IDC started tracking this software market in 1994,” said Dan Kusnetzky, vice president of IDC’s system software research. “This company has successfully created a brand which is recognized worldwide.”

The IDC research echoes another recent survey illustrating Red Hat’s leadership. Netcraft Inc.’s ( http://www.netcraft.com ) May 2000 Web Server Survey located almost 850,000 Web sites worldwide that run Linux and provide a personalized server header. Out of these sites, 72 percent run on Red Hat Linux (compared with just 10 percent for the second largest distribution). In June, Netcraft found that 30 percent of all public Web sites run on Linux-based operating systems, making Linux the most popular choice for deploying public Web sites.

Founded in 1994, Red Hat is the leading provider of open source Internet infrastructure solutions, ranging from small embedded devices to high availability clusters and Web serving. 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. Visit http://www.redhat.com for more information.

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