Red Hat^® to Deliver GNUPro^© Tools for Altera Excalibur^TM Embedded Processor Solutions

Industry-Leading Embedded System Development Tools Enable C/C++ Code Methodology for New Altera Excalibur^TM Embedded Processor Solutions

Embedded Processor Forum, San Jose, Calif., June 12, 2000Red Hat^® (Nasdaq: RHAT), the leading provider of open source solutions for Internet infrastructure, and Altera Corporation (Nasdaq: ALTR), a leading supplier of programmable logic devices (PLDs), today announced they have signed a licensing agreement that gives Altera customers easy access to Red Hat's world-class embedded system development tools created by Cygnus, a division of Red Hat, for Altera's new Excalibur^TM embedded processor solutions. Through close collaboration, a suite of the GNUPro© embedded development tools was created and specifically optimized to support Altera's Nios^TM embedded processor core, also announced today (see release entitled, "Altera Introduces the Nios^TM Embedded Processor, Industry's First RISC-Based Embedded Processor Developed for SOPC Integration"). The GNUPro tool set includes a C/C++ compiler, assembler and debugger. These tools enable engineers to develop, preserve, and easily recompile program source code for execution across a broad range of processor architectures including Altera's Nios soft core embedded processor. The agreement enables system engineers to quickly develop system-on-a-programmable-chip (SOPC) designs for a wide-range of applications in the communications, computing, digital consumer, and industrial markets.

"Our work with Altera is a natural extension of our commitment to deliver the best development platform for embedded systems designers," said Michael Tiemann, Red Hat chief technology officer. "With the Excalibur embedded processor solutions, including the Nios soft core, Altera provides a valuable integrated platform for hardware and software co-development that is required to create complex system-level solutions."

"By combining the GNUPro tool support with our new Excalibur embedded processor solutions, systems designers will have low-cost, wide-open access to proven technology for embedded system development," said Rodney Smith, Altera chairman, president and CEO. "This agreement offers an industry-leading hardware and software solution to keep designers on the leading-edge of delivering true system-on-a-programmable-chip solutions."

The GNUPro Tool Suite

The GNUPro tool suite is Red Hat's commercial suite of software development tools built around the open source GNU standard. GNUPro products are tested, certified and produced as an integrated tool suite specifically for commercial developers of both desktop and embedded products.

The GNUPro tool suite provides a robust and open development platform for embedded system design that includes a C/C++ compiler, assembler and debugger. Future enhancements related to the Nios embedded processor include support for the Red Hat eCoS real-time operating system.

Pricing and Availability

The GNUPro tool suite for the Altera Nios soft core embedded processor is included as part of the Excalibur Development Kit from Altera. The Excalibur Development Kit, featuring the Nios embedded processor core, is available for order now and is priced at $995. The development kit includes the Nios embedded processor core, Altera's Quartus^TM design tools, the Red Hat GNUPro suite of embedded system design tools, a system development board populated by an APEX^TM EP20K200E device, and an Altera ByteBlaster^TM download cable.

Hands-on workshops will be held throughout the United States in June, July and August. Workshops will be conducted in Europe and Japan in September and October. These free workshops will provide hardware and software engineers an opportunity to evaluate the Nios embedded processor and experience the creation of a working system design using the Excalibur Development Kit.

About Red Hat

Founded in 1994, Red Hat (Nasdaq:RHAT), is the leading provider of open source Internet infrastructure solutions, delivering on the promise of open source from small embedded devices to the most prodigious enterprise. Red Hat applies its technological leadership to create open source solutions for Internet infrastructure and post-PC environments, offers services backed by the best understanding of open source and the most comprehensive resources, delivers the brand of a widely trusted open source leader and corporate partner, and persists in an indelible commitment to the virtues of open source to lead a revolution in the computing industry.

Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. Visit Red Hat on the Internet at www.redhat.com. For investor inquiries, contact Lippert/Heilshorn at (212) 838-3777.

About Altera

Altera Corporation, The Programmable Solutions Company^®, as founded in 1983 and is a leading supplier of programmable logic devices (PLDs). Altera's CMOS-based PLDs are user-programmable semiconductor chips that enhance flexibility and reduce time-to-market for companies in the communications, computer peripheral, and industrial markets. By using high performance devices, software development tools, and sophisticated intellectual property cores, system-on-a-programmable-chip (SOPC) solutions can be created with embedded processors, memory, and other complex logic together on a single PLD. Altera common stock is traded on The Nasdaq Stock Market under the symbol ALTR. More information on Altera is available on the Internet at http://www.altera.com.

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Altera, The Programmable Solutions Company, Excalibur, Nios, Quartus, APEX, ByteBlaster, and specific device designations are trademarks and/or service marks of Altera Corporation in the U.S. and other countries. All other trademarks are the property of their respective holders.

Red Hat is a registered trademark and GNUPro is a copyright of Red Hat, Inc. All other names and trademarks are the property of their respective owners.

Editor Contacts:

Barry Katcher	Stephanie Oswold	Melissa London
Altera Corporation	Tsantes & Associates	Red Hat, Inc.
(408) 544-8202	(408) 369-1500	(919) 547-0012
bkatcher@altera.com	stephanie@tsantes.com	melissa@redhat.com