Red Hat Announces $300 Million Stock Repurchase Program

Mon Apr 15, 2013 4:05pm EDT

* Reuters is not responsible for the content in this press release.

RALEIGH, N.C.--(Business Wire)--
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source
solutions, today announced that its Board of Directors has authorized the
repurchase of up to $300 million of Red Hat`s common stock from time to time on
the open market or in privately negotiated transactions. 

The new program replaces the previous $300 million repurchase program, the final
$179 million of which was completed since February 28, 2013 at an average price
of $49.15 per share, inclusive of commissions, for a total of 3.6 million
shares. "Over the last 13 months we have repurchased $300 million or 5.9 million
shares of Red Hat common stock under the current program, equivalent to 3% of
our shares outstanding as of February 28, 2013," stated Charlie Peters,
Executive Vice President and Chief Financial Officer of Red Hat. "Our management
team and Board of Directors have a strong conviction in our long-term growth
prospects and our ability to generate profits and cash flow. We believe that
stock repurchases demonstrate our commitment to building shareholder value as
well as confidence in achieving long-term growth." 

The timing and the amount of any repurchases of common stock will be determined
by Red Hat management based on its evaluation of market conditions and other
factors. Repurchases of common stock may be made under a Rule 10b5-1 plan, which
would permit common stock to be repurchased when Red Hat might otherwise be
precluded from doing so under insider trading laws. The repurchase program may
be suspended or discontinued at any time. 

The repurchase program will be funded using Red Hat`s working capital. As of
February 28, 2013, Red Hat had cash and investments of approximately $1.3

Red Hat had approximately 193.0 million shares of common stock outstanding as of
February 28, 2013. 

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 a 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: 

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; the integration of acquisitions and the ability to market
successfully acquired technologies and products; uncertainty and adverse results
in litigation and related settlements; 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,
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. 

Red Hat, Inc. Red Hat, the Shadowman logo and JBoss are registered trademarks of
Red Hat, Inc. in the U.S. and other countries.Linux is a registered trademark of
Linus Torvalds.

Red Hat, Inc.
Media Contact:
Stephanie Wonderlick, 571-421-8169
Investor Relations:
Tom McCallum, 919-754-4630

Copyright Business Wire 2013

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