RED HAT ACQUIRES WIRESPEED COMMUNICATIONS.(Company Business and Marketing)

Red Hat, Inc. (Nasdaq: RHAT), Researh Triangle Park, N.C., a leader in open source Internet infrastructure solutions, has completed the acquisition of privately-held WireSpeed Communications Corporation Inc., a leading developer of network and telecommunications components for embedded systems software. The transaction was valued at $30.5 million based on an average closing price of Red Hat's common shares for a five-day period ended June 15, 2000. Under the terms of the transaction, Red Hat issued 1,525,365 shares of Red Hat common stock in exchange for all of the outstanding sec