Red Hat Acquires Hell's Kitchen Systems, Inc.

Red Hat has signed a definitive agreement to purchase privately-held Hell's Kitchen Systems, Inc. (HKS) for up to 398,335 shares of Red Hat common stock. The acquisition will bring HKS' e-commerce payment processing software into the Red Hat solutions family and provide all the software, information and services needed for Internet and enterprise e-business initiatives. This is another key addition to Red Hat's strategy to create a next-generation software company spanning powerful servers, Internet infrastructure and pervasive, post-PC-centric computing platforms. The acquisition continues the expansion of Red Hat's open source software and services for enterprises migrating their business to the Internet and the next-generation of embedded, post-PC devices. In 1999, Red Hat added worldwide support for top open source Internet software and acquired Cygnus Solutions, an open source software technology leader. The combined entity will remain committed to serving the customers of each company.