Yes, Fedora in a roundabout way, is Red Hat's free offering. Though it is technically owned by The Fedora Project, it is based on Red Hat code. In a nutshell, Fedora is Red Hat's test bed for bleeding-edge software. Typically, before a feature/software is added to the RHEL (Red Hat Enterprise Linux) lineup, it is extensively 'tested out' in Fedora. Once it's deemed safe and stable enough for commercial use, said feature/application then finds its way into RHEL.
At least, that's how it was explained to me by the instructor in the RHCT certification course (at Red Hat headquarters, no less).
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