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``Our OEM customers are asking us for a common platform to extend their product line, and need tools and services that simplify their development process,'' said Dennis Tevlin, president of iObjects. ``The Dadio SDK will set a new standard in development efficiency and quality.''

Dadio, which is already used in the digital audio player designs of Iomega's HipZipO and I-Jam's WinJam, was released in June of 2000. The new Dadio SDK is expected to be available by the end of this year.

``This alliance is an important part of our strategy to extend Red Hat's systems and engineering services into new vertical markets,'' said Michael Tiemann, CTO of Red Hat. ``Digital audio is one of the fastest growing markets for embedded systems. This partnership will bring together the best of both companies' capabilities.''

In addition to co-developing the Dadio SDK, iObjects and Red Hat will offer OEMs an expanded set of integration, testing and support services. The increased level of collaboration will allow the companies to accelerate new product development activities while also increasing their collective capacity to service new OEM partners.

About Red Hat, Inc.

Founded in 1994, Red Hat (Nasdaq:RHAT - news), is the leader in development, deployment and management of Linux and open source solutions for Internet infrastructure ranging from small embedded devices to high availability clusters and secure Web servers. In addition to the award-winning Red Hat Linux server operating system, Red Hat is the principle provider of GNU-based developer tools and support solutions for a wide variety of embedded processors. Red Hat provides run-time solutions, developer tools, Linux kernel expertise and offers support and engineering services to organizations in all embedded and Linux markets.

Red Hat applies its technological leadership to create open source solutions for all points on the Internet and in pervasive computing environments, offers services backed by the best understanding of open source and the most comprehensive resources, and delivers the brand of a widely trusted open source leader and corporate partner. Red Hat offers users one single, trusted point of contact and a common platform for developing, deploying and managing open source across the Internet and devices that connect to the Internet.

Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. Please visit Red Hat on the Web at www.redhat.com.

About Interactive Objects, Inc.

Interactive Objects (www.iobjects.com) is a leading developer of audio solutions for portable digital appliances and the creator of Dadio, the universal software for digital audio players. iObjects provides custom software engineering, industrial design, and manufacturing services, and offers licenses of its proprietary Dadio digital audio software to leading consumer electronics, PC manufacturers, and computer software companies.

Interactive Objects is headquartered at 12600 SE 38th, Suite 150, Bellevue, WA 98006, USA. Interactive Objects is listed on the OTC.BB under the symbol ``OBJX'' and on the ``Third Segment'' of the Frankfurt Stock Exchange under the symbol ``IOX'' and German securities code WKN: 913011. The Company can be reached on the Web at http://www.iobjects.com/.

Certain information included in this communication contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These forward statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated. These risks include, among others, risks associated with unproven sales of the Company's products, risks associated with the software development process and risks related to the transition to a new management team. Certain of these risks and other risks are described in the Company's Registration Statement on Form SB-2 and Form 10-KSB filed with the Securities and Exchange Commission (SEC). The registration statement is available from the SEC's Web site at http://www.sec.gov/

Contact:

     Melissa London
     Red Hat, Inc.
     (919) 547-0012
     melissa@redhat.com
     or
     Bryan Scanlon
     Schwartz Communications for Red Hat
     (781) 684-0770
     redhat@schwartz-pr.com