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Red Hat Expands Open Hybrid Cloud Solutions Portfolio and Strategy After Closing ManageIQ Acquisition

Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced updates to its open hybrid cloud solutions portfolio and strategy following the closing of its acquisition of ManageIQ, a leading provider of enterprise cloud management and automation solutions that enable organizations to easily deploy, manage and optimize across private clouds, public clouds and virtualized infrastructures. Red Hat both announced that it had signed a definitive agreement to acquire ManageIQ and completed the acquisition in late Dec. 2012.

“We’ve worked with ManageIQ as a partner to our Red Hat Enterprise Virtualization platform with successful joint customers and saw an opportunity to expand our hybrid cloud management capabilities with an even closer relationship with ManageIQ’s compelling portfolio,” said Bryan Che, general manager, Cloud Business Unit at Red Hat. “With the closing of the acquisition, we now begin work to integrate ManageIQ’s enterprise cloud management and automation technologies with our complementary Red Hat CloudForms hybrid Infrastructure-as-a-Service (IaaS) solution and our open Red Hat Enterprise Virtualization management solution. With this combination, we can offer our customers an unparalleled open hybrid cloud management portfolio.”

“As more and more production workloads are deployed across heterogeneous virtual, private cloud and public cloud datacenters, IT buyers are prioritizing investments in management solutions that can automate and optimize end-to-end performance and capacity utilization across these complex environments,” said Mary Johnston Turner, research vice president, Enterprise Systems Management at IDC. “IDC expects spending on cloud systems management software to exceed $3.6 billion by 2016 thanks to demand for these types of sophisticated tools.”

In addition to their technology and solutions portfolios being complementary, Red Hat and ManageIQ also share many joint customers – the majority of ManageIQ’s customers are also Red Hat customers.

According to Chris Russell, IT architect consultant for a leading global provider of banking and payments technologies to thousands of financial institutions that runs a multi-tenant virtual IT infrastructure in three datacenters using ManageIQ technologies, “With ManageIQ EVM, we sought to provide our account teams and their respective customers with granular visibility into the fee-based virtual infrastructure services being consumed by its customers, and also needed operational tools capable of providing insight into resource utilization, trends and available capacity across our multiple datacenters. Even before Red Hat acquired ManageIQ, we were already starting to look closely at the cost benefits of leveraging our Red Hat Enterprise Linux environment with Red Hat Enterprise Virtualization, as well as considering OpenStack options for open cloud implementations. Now with Red Hat and ManageIQ together, we can continue to manage our current virtual estate while looking forward to a compelling open hybrid cloud management portfolio that will result from the combination of these powerful technologies.”

To learn more about Red Hat’s strategy around the acquisition of ManageIQ and about Red Hat’s open hybrid cloud management solutions, join Red Hat executives for a webcast press conference beginning at 11:00 a.m. ET on Jan. 22, 2013. The webcast will also be available for replay. Register to join: https://vts.inxpo.com/Launch/QReg.htm?ShowKey=12479.

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About Red Hat, Inc.

Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; uncertainty and adverse results in litigation and related settlements; the integration of acquisitions and the ability to market successfully acquired technologies and products; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company's growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission's website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

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