Austin, Texas - October 29, 1999 - Photodex Corporation, a leading supplier of digital content management, imaging and multimedia software, and Red Hat, Inc. (NASDAQ: RHAT), based in Durham, NC, the market leading Linux developer and service provider, announced today their partnership to provide CompuPic Digital Content Manager software for the Red Hat Linux operating system.

"CompuPic brings powerful, yet user-friendly imaging capabilities to the Red Hat Linux desktop, enabling Red Hat Linux to compete head-on with other platforms. These tools should not be taken for granted," said Paul Schmidt, CEO, Photodex. "Novice users find it easier to use the Linux desktop when familiar applications are available, especially when managing multimedia content. Professional web developers need powerful tools to more easily develop and maintain web sites. CompuPic solves these problems and more."

This agreement to bring top-notch content management tools to Red Hat Linux is the latest in a series of Red Hat transactions that increase the viability of the Linux OS.

Already tried and tested on the Windows and Mac platforms and with hundreds of thousands of users worldwide, CompuPic Digital Content Manager will let Red Hat Linux users visually access, manage and manipulate their graphics and media files. CompuPic provides a solid file management base for general use as well as specific graphics and media editing tools for web developers and imaging enthusiasts.

"Most users are afraid of command lines, which is one of the reasons Windows has been so successful," said Paul Schmidt, Photodex CEO. "We believe the next wave of software, including open source, will demonstrate that Linux can be as easy to use as Windows, perhaps easier! "

CompuPic for Linux is free for non-business use. Business users will be able to purchase licenses direct from Photodex Corporation and from vendors bundling CompuPic with enterprise solutions packages. Users wishing to join the CompuPic public beta program for Linux or seeking information on Photodex open source software should go to http://linux.compupic.com.

About Photodex
Founded in 1987 and based in Austin, TX, Photodex Corporation develops innovative imaging and media applications helping computer users organize and use their photo, clip art, font, video and sound files effectively and creatively. Photodex was one of the first software companies to base a commercial business upon an online distribution model, initially selling via Prodigy, AOL and CompuServe prior to the World Wide Web. Photodex products and utilities are also licensed to leading software publishers, including Broderbund, Expert Software, IBM, Maxis and T/Maker.

About Red Hat Inc.
Founded in 1994, Red Hat is a market leader in open source operating system (OS) software and services. Along with its award winning open source Red Hat Linux OS, Red Hat offers a full line of services, including telephone support, on-site consulting, developer training, certification programs and priority access updates, making Red Hat a leading and complete resource for knowledgeable, innovative, mission-critical open source solutions.

LINUX is a trademark of Linus Torvalds. Photodex and CompuPic are registered trademarks of Photodex Corporation. RED HAT is a registered trademark of Red Hat, Inc. All other names and trademarks are the property of their respective owners.

Contact
Amanda Sahliyeh
amanda@photodex.com
Photodex Corporation
925 Westbank Drive
Austin, TX 78746
(512) 406-3066

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