October 27, 1998

Dear Jerry:

I wanted to make sure you received a copy of this press release. It is an important partnership between two companies, Corel and Red Hat, who have been extremely active in the Linux space.

As you may know, Corel Computer is now shipping two products: the NetWinder DM, a developer’s machine, and the NetWinder WS, a micro web server. The NetWinder DM is targeted towards a technical audience including developers, integrators and potential OEM partners. The NetWinder WS is aimed at Internet Service Providers and small workgroups who want the stability and power of Linux and Apache in the small form factor, low energy consumption package of the NetWinder. This announcement means that future products, both the server and desktop space, will be configured with Red Hat Linux.

The agreement with Red Hat also builds upon the recent announcement that Intel is investing in Red Hat. As you may know, the StrongARM is developed by Intel, who have been keenly interested in the stability, power and functionality of Linux.

Should you have any questions, please do not hesitate to call. Be sure to take a look at Corel’s new Linux-specific Web pages, http://linux.corel.com.

Sincerely,

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Corel Computer and Red Hat Software Announce Linux Operating System Partnership

Red Hat to port to StrongARM® processor

Ottawa, Canada—October, 27, 1998—Corel Computer and Red Hat Software, Inc. today announced an agreement to bring the Red Hat® distribution of Linux® to the Corel Computer NetWinder™ family of thin-clients and thin-servers . Under the three-year agreement, Red Hat will port Red Hat Linux 5.1 and future releases of the software to the StrongARM® processor, the underlying architecture of the NetWinder.

"We are pleased to be able to offer our NetWinder customers the benefits of the award-winning Linux distribution from Red Hat," said Ron McNab, vice president and general manager of Corel Computer. "The partnership will allow us to concentrate on our core business—building one of the most powerful and easy-to-use thin-clients and thin-servers on the market."

The agreement provides Corel Computer with the right to use the Red Hat distribution of Linux including the Red Hat name and logo on the NetWinder products. Additionally, Corel Computer has the rights to distribute Red Hat CD ROMs and printed documentation manuals to customers.

"I am pleased to announce that Red Hat Linux will soon be available on the exciting new NetWinder platform," said Robert Young, president of Red Hat Software. "The partnership between Corel Computer and Red Hat adds to the growing momentum of Linux."

Currently the NetWinder family is running a custom Linux distribution based on Red Hat 4.2. When available, NetWinder customers will be able to upgrade their systems by either downloading the operating system from Corel Computer or Red Hat, or by purchasing a CD ROM and manual from either vendor.

Red Hat Software, Inc.

Red Hat Software, Inc., a leading distributor of the Linux operating system, Red Hat builds, maintains and provides technical support for the Red Hat Linux operating system. Linux runs on Intel®, Alpha™ and Sun™ SPARC ™ platforms.

Corel Computer

Corel Computer, a global player in the design and manufacture of high quality thin-client, thin-server and video conferencing products, markets the NetWinder™ and CorelVIDEO™ product lines as part of a strategy to merge communications and computing on the desktop. As a vigorous proponent of open standards and vendor neutral technology, Corel Computer has incorporate d the StrongARM® microprocessor and the Linux® operating system into its compact, powerful NetWinder network computing products, which deliver more than 250 MIPS yet consumes a fraction of the power of an average desktop computer. Its CorelVIDEO platform comprises reliable, scalable tools for face-to-face video communications, whether across the hall or around the world. Corel Computer is a separate division of Corel Corporation, an award-winning developer of graphics software and productivity applications.

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