Red Hat Signs Definitive Agreement to Acquire JBoss

Red Hat Signs Definitive Agreement to Acquire JBoss Open source leaders agree to join to drive down the cost of developing and deploying web-enabled applications

RALEIGH, NC - April 10, 2006 - Red Hat (NASDAQ: RHAT), the world's leading provider of open source solutions to the enterprise, today announced that it has entered into a definitive agreement to acquire JBoss, the global leader in open source middleware. By acquiring JBoss, Red Hat expects to accelerate the shift to service-oriented architectures (SOA), by enabling the next generation of web-enabled applications running on a low-cost, open source platform.

"It is at Red Hat's very core to help unlock the power of open source and open communities to innovate across industries, geographies and economies," said Matthew Szulik, Chairman and CEO of Red Hat. "Red Hat and JBoss are fully aligned around the belief that the open source development model continues to change the economics of enterprise IT in favor of the customer, and we truly believe in the potential of software innovation, once freed from the fetters of proprietary development."

Red Hat will acquire JBoss for approximately $350 million in initial consideration, plus approximately $70 million subject to the achievement of certain future performance metrics. The transaction consideration is composed of approximately 40% in cash and 60% in Red Hat common stock. The acquisition is expected to be completed around the end of Red Hat's first fiscal quarter (May 2006), subject to customary closing conditions, including regulatory approval. The low-cost on-ramp to SOA

The adoption cycle for new technologies is littered with early adopters, who spent millions of dollars subsidizing "new" platform software that never lived-up to the hype. JBoss has shattered that model by providing innovative, standards-based middleware solutions at a low cost, to enable mainstream customers to develop and deploy next-generation, service-enabled applications much sooner than previously expected. According to Gartner, Inc., the Application Integration and Middleware and Portal (AIM) markets for license revenue is preliminarily estimated to more than $6.5 billion in 2006. Paired with Red Hat's proven portfolio of enterprise solutions, Red Hat believes the combination, once consummated, will help accelerate the shift to SOA by making innovative, powerful solutions available to developers and customers that seek to lower development and deployment costs. The Common Bond of Open Source

With each committed to advancing open source software and its collaborative development model, Red Hat and JBoss have been recognized as open source leaders. The large and vibrant communities around Linux and JBoss prove that the open source development model creates innovative, quality software, while providing a flexible and low cost model for customers. This acquisition is expected to accelerate enterprise adoption of open source infrastructure, and broaden the entire market opportunity for existing and new Red Hat and JBoss partners who are building value-added enterprise solutions. A complete fit - business model, channels, service delivery, and culture

JBoss has modeled it's business after Red Hat's proven subscription model - services and support, delivered through an online network. Red Hat provides established channels and global service delivery capability trusted by the enterprise. JBoss adds enterprise-proven middleware technology, community leadership, and a strong developer brand to Red Hat - a tight fit of business model and service delivery model. JBoss management chose Red Hat because it aligns to the vision of JBoss - delivering customer value by simplifying development, reducing cost barriers for adoption, and making it safer for use in mission-critical deployments by providing expert support services and advanced management tools.

"The union of these two companies will demonstrate the benefits of a pure open source play," said Marc Fleury, CEO of JBoss. "Our customers are increasingly standardizing their infrastructures on open source technologies and want a stable and trusted global open source vendor to support them. By joining forces with Red Hat, we expect to be able to provide enterprises the largest offering of open source solutions, a global services network staffed by technology experts, and a large and vibrant eco-system of certified products and services. This is a winning combination that we believe will further expedite the proliferation of open source in the enterprise, which has been our mission since day one."

Red Hat believes that the acquisition will be slightly dilutive to its quarter ending August 31, 2006, but neutral to earnings and cash flow for the full fiscal year. The transaction is expected to be accretive to both earnings and cash flow in the next fiscal year ending February 28, 2008.

For more information please visit http://www.redhat.com or http://www.jboss.com. Red Hat will be host a press/analyst webcast today at 9:15am EST. To access the webcast, please visit http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=67156&eventID=1292560. About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. The most trusted name in open source, CIOs and other senior-level IT executives have ranked Red Hat as the industry's most valued vendor for two consecutive years in the CIO Insight Magazine Vendor Value study. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the factors discussed in our most recent Quarterly Report on Form 10-Q filed with the SEC (a copy of which may be accessed through the SEC's website at http://www.sec.gov), reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures and the viability of the Internet. In addition, 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 the press release.

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.

Updated:

The Current Golden Eagle Lie/Hypocrisy/Cluelessness/General Lunacy List:
(Now with 48% more attacks on straw men!).

Lies:

Here's where he says that all GPL copyrights are signed over to Stallman: http://www.freerepublic.com/focus/f-backroom/1612495/posts?page=44#44

then, when he's caught, says that he's not sorry (or, as I like to call it, a "nopology"): http://www.freerepublic.com/focus/f-backroom/1612495/posts?q=1&&page=61#62

Here's where he refers to Dell "systems": http://www.freerepublic.com/focus/f-chat/1585665/posts?page=35#35

Then denies his own copied-and-pasted quote: http://www.freerepublic.com/focus/f-chat/1585665/posts?page=137#137

then blames me for it all, saying I should have reminded him of his own words: http://www.freerepublic.com/focus/f-chat/1585665/posts?page=165#165

Then, here's where he makes more false accusations of ME: http://www.freerepublic.com/focus/chat/1592292/posts?page=90#90

and here's where I ask him to prove I said the things he accused me of: http://www.freerepublic.com/focus/chat/1592292/posts?page=92#92

Here's where he doesn't provide any proof: http://www.freerepublic.com/focus/chat/1592292/posts?page=95#95

And fails again to prove what he says: http://www.freerepublic.com/focus/chat/1592292/posts?page=99#99

And yet again, repeating the accusations, but failing to provide proof: http://www.freerepublic.com/focus/chat/1592292/posts?page=122#122

And now, where his "proof" of what I said is something I didn't even post: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=125#125

and where he has the nerve to ask another poster to back up what they say with specific examples, despite the fact that he refused to do so for me: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=255#255

and here is where he demands that yet someone ELSE provide a link to prove what THEY said: http://www.freerepublic.com/focus/f-chat/1568848/posts?page=68#68

and here is where he claims he will admit mistakes, despite the fact that he hasn't admitted this one: http://www.freerepublic.com/focus/f-chat/1592494/posts?page=43#43

Here he is claiming that Red Hat has a couple of hundred Linux kernel developers: http://www.freerepublic.com/focus/f-chat/1527263/posts?page=49#49

And here he is claiming no one knows how many kernel developers work for Red Hat: http://www.freerepublic.com/focus/f-chat/1527263/posts?page=77#77

and here, he denies that he said hundreds, yet again (21st paragraph): http://www.freerepublic.com/focus/f-chat/1592292/posts?page=131#131

And here he is getting nailed for it yet again:
http://www.freerepublic.com/focus/f-chat/1592292/posts?page=132#132

and again: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=137#137

and claiming that I never proved that he was wrong about the number of kernel developers at Red Hat, despite the fact that he said "literally hundreds" himself, but later retracted it: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=134#134

Here he is saying that he's leaving a thread: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=127#127

and here he is, many days and over 100 posts later, still posting: http://www.freerepublic.com/focus/f-chat/1592292/posts?q=1&&page=281#284

Here's where he tries to say that Richard Stallman is opposed to all patents: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=266#261

Here's where he amends his statement to say "software patents": http://www.freerepublic.com/focus/f-news/1609606/posts?page=22#22

Here's where Jim Robinson tells about creating the Freerepublic Forums in '97: http://www.freerepublic.com/focus/f-news/1011545/posts

And here's where GE, a man on the cutting edge of technology, claims he managed to get a membership at FR two years before the forums existed: http://www.freerepublic.com/focus/f-news/950193/posts?page=285#285

Here's where he hijacked the Open Source Ping List, and the ensuing discussion: http://www.freerepublic.com/focus/f-news/1571222/posts?page=8#8

Hypocrisy:

Here, he complains that Cedega's bad because it's not free: http://www.freerepublic.com/focus/f-chat/1591595/posts?page=115#115

and then, mocks another user for suggesting that Cedega be free: http://www.freerepublic.com/focus/f-chat/1591595/posts?page=134#134

then complains that Linux is bad because it is free: http://www.freerepublic.com/focus/f-news/1530486/posts?page=40#40

then says Solaris is good because it's free: http://www.freerepublic.com/focus/f-chat/1490554/posts?page=21#21

Here he is, criticizing Linux because it doesn't run Windows apps (despite the fact that it can, in some cases): http://www.freerepublic.com/focus/f-chat/1591595/posts?q=1&&page=101#115

Here he is, recommending Solaris, which doesn't run Windows apps: http://www.freerepublic.com/focus/f-chat/1490554/posts?page=21#21

...and Apple, which doesn't either: http://www.freerepublic.com/focus/f-chat/1573697/posts?page=9#9

and copping out when challenged about Windows inability to run Linux apps: http://www.freerepublic.com/focus/f-chat/1591595/posts?page=118#118

Here, he's criticizing others for namecalling: http://www.freerepublic.com/focus/f-chat/1584107/posts?page=29#29

And here he is, namecalling: http://www.freerepublic.com/focus/f-news/1583531/posts?page=61#61

Here's where GE says Stallman is a whacko leftist: http://www.freerepublic.com/focus/chat/1601565/posts?page=24#24

Here's where I agree: http://www.freerepublic.com/focus/chat/1601565/posts?page=30#30

And here's where he disagrees that I agree: http://www.freerepublic.com/focus/chat/1601565/posts?page=30#31

And here's where he claimed I defended Stallman (I didn't) and fails to provide a link to back up his accusations:
http://www.freerepublic.com/focus/chat/1607069/posts?page=96#96

Here he is ridiculing another poster for using bold fonts to make a point: http://www.freerepublic.com/focus/f-chat/1493462/posts?page=130#130

And here he is using bold fonts to make a point: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=106#106

Here he is, complaining about abortions in China: http://www.freerepublic.com/focus/f-chat/1592292/posts?page=106#106

and here he is, defending Microsoft's contributions to Planned Parenthood: http://www.freerepublic.com/focus/f-news/1492595/posts?page=22#22

And here he is defending Planned Parenthood itself: http://www.freerepublic.com/focus/chat/1601565/posts?page=35#33

and again, lying about the primary mission of that organization (he says it's to fight AIDS in Africa): http://www.freerepublic.com/focus/f-chat/1601565/posts?page=40#40

Cluelessness:

Here, he becomes concerned about security on Knoppix, a live Linux filesystem, written to a FINALIZED (read that: unwritable) CD-R, which by default, runs with all drives unmounted and in unwritable mode: http://www.freerepublic.com/focus/f-news/1536740/posts?page=18#18

Here's where a poster very obviously criticizes him for his closed-mindedness and he totally misses it, instead taking it as a compliment (post 79 and his response, 80): http://www.freerepublic.com/focus/f-news/1539488/posts?page=80#79

General lunacy:

Here is a Linux thread with only one post by GE (notice how pleasant and peaceful): http://www.freerepublic.com/focus/f-chat/1500664/posts?q=1&&page=1

Here is a Linux thread where GE stayed and trolled (well beyond 280 posts, totally off the topic. No insults before he showed up, as with many of his threads. He has stated multiple times that he was leaving, yet he keeps posting, because he's a last word freak): http://www.freerepublic.com/focus/chat/1592292/posts?q=1&&page=1#1

Here are some of his infamous "picture posts", usually made when he is getting beaten very badly:

http://www.freerepublic.com/focus/f-news/1536740/posts?page=106#106
http://www.freerepublic.com/focus/f-news/1536740/posts?page=125#125
http://www.freerepublic.com/focus/f-news/1536740/posts?page=149#149
http://www.freerepublic.com/focus/f-news/1530253/posts?page=25#25
http://www.freerepublic.com/focus/f-chat/1489068/posts?page=29#29
http://www.freerepublic.com/focus/f-news/1487693/posts?page=163#163

Here he is, suggesting that Richard Stallman "build[s] up his power" by getting "dopes like [me]" to download Linux: http://www.freerepublic.com/focus/f-backroom/1612495/posts?page=75#75

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