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Red Hat Provides eToys With Solutions FOr Mission-Critical Operations
  Mar 23rd, 17:09 UTC

Second-busiest E-tail Site Runs Web Site, Network and Warehouse Management Functions on More Than 500 Red Hat-powered Computers

Research Triangle Park, N.C.-March 23, 2000-Red Hat, Inc. (Nasdaq:RHAT), the market leader in open source solutions, today announced that eToys Inc. (Nasdaq:ETYS), which was recently ranked the top overall Web site of the 1999 holiday season by a report published in Fortune magazine, uses more than 500 machines running Red Hat Linux for a variety of enterprise applications.

eToys markets more than 100,000 nationally advertised and specialty children's products, including toys, books, games, music, software, video games and baby items. The company uses Red Hat Linux as its primary platform for development, Web hosting and serving, warehouse management, fulfillment, network operations, mail serving and file serving. These functions are split between five locations around the world, and account for a large percentage of the company's computing activities.

"As one of the leading online brands, we require systems that are resilient enough to service our growing customer base while providing the flexibility to meet our changing needs," says Jeff Speigel, Lead Web site Administrator, eToys Inc. "By choosing Red Hat, we benefit from the high availability of Linux while leveraging the strong relationships and support structure that the Red Hat name brings."

About eToys.com

Based in Santa Monica, CA, eToys Inc. (www.eToys.com; www.eToys.co.uk; AOL Keyword eToys) is the premier Internet retailer for children's products with an extensive selection of both nationally advertised and specialty toys, software, books, videos, music, video games, and baby-oriented products. By combining this extensive selection, with helpful and fun ideas and award-winning customer service, eToys offers consumers a unique one-stop source for children's products. Through its wholly owned subsidiary, BabyCenter, Inc. (www.babycenter.com ; www.babycentre.co.uk, eToys offers Webby-award winning content and community, as well as an extensive selection of merchandise for new and expectant parents.

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. IDC preliminary figures for 1999 show Linux shipments hold 24.6 percent of the server operating system market, up from 15.8 in 1998.

According to research firm NetCraft, Inc. (www.netcraft.com), 29 percent of all public Web servers run on Linux, making Linux the most popular operating system for public Web sites. 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, Corel, Dell, Hewlett-Packard, IBM, Intel, Netscape, Novell, Oracle and SAP.

About Red Hat, Inc.

Founded in 1994, Red Hat (Nasdaq:RHAT) is the market leader in open source operating system (OS) software, services and information, spanning powerful enterprise and Internet servers to next-generation devices and pervasive computing platforms. Along with its award-winning open source Red Hat Linux OS, Red Hat offers a full line of services, including telephone support, on-site consulting, developer training, certification programs and priority access updates, making Red Hat a leading resource for knowledgeable, innovative, mission-critical open source solutions.

Red Hat develops and shares all of its software innovations freely with the open source community under the GNU General Public License (GPL) and other public licenses. The Official Red Hat Linux OS and related services are available directly from the company and through its partner, distributor and reseller programs, which include top PC and server manufacturers such as Compaq, Dell, Gateway, IBM, Hewlett-Packard and Silicon Graphics.

Red Hat and the Official Red Hat Linux OS have received substantial industry praise. Recent accolades include: Red Herring's Top 100 Companies of the Electronic Economy, Network World's 10 Companies to Watch, Federal Computer Week's Government Best Buy, Software Development's Jolt Award, Information Week's Product of the Year, an Upside Hot 100 Company and E-biz Winner, and InfoWorld's Product of the Year four years in a row. 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.

# # #

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,the ability to attract new enterprise customers, the ability to continue to develop the Linux kernel and other software, Red Hat's dependence upon an open source business model, product plans and performance, reliance upon independent third-party Linux developers, management of growth, reliance upon strategic relationships, 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.


(Submitted by brian willinsky of schwartz communications)

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