Bay Networks and First Virtual Corporation Form Strategic Alliance to
Provide Desktop Multimedia Solutions

Partnership Represents Significant Step in the Deployment of Desktop
Multimedia in ATM Environments

SANTA CLARA, CA., January 23, 1996 -- Bay Networks, Inc. (Nasdaq: BNET) and
First Virtual Corporation today announced they have signed an agreement to
enable the extension of desktop multimedia services into the ATM LAN
backbone. The technology agreement will speed the deployment of desktop
multimedia applications in ATM environments, completing a comprehensive
capability for the companies to deliver Quality of Service (QoS)
networking.

Under terms of the agreement, Bay Networks will resell and support a
private-label version of the core First Virtual Corporation product set.
This new product set, the Bay Networks Multimedia Switch system, will
include a 25 Mb/s Workgroup ATM switch, a 25 Mb/s NIC Card, and MOS - the
First Virtual Media Operating Software. Additionally, the companies have
agreed to integrate management of the 25 Mb/s ATM switch through Bay
Networks' Optivity network management system.

By providing enterprise management, scalable LAN Emulation (LANE) and
worldwide service and support, Bay Networks will significantly extend
multimedia capabilities across the enterprise. Optivity is an enterprise
management system delivering comprehensive support beyond the simplistic
MIB-only SNMP implementations available with most 25Mb/s ATM systems. The
combination of the First Virtual MOS software support for multimedia on
the NIC card and the utilization of LANE services on the Bay Networks
5000AH provides centralized management of enterprise-scalable LANE,
connecting legacy systems with ATM.

Rob Newman, vice president of switched internetworking products at Bay
Networks, commented, "Our relationship with First Virtual combines their
leading multimedia workgroup switch technology with Bay Networks' strong
position in the ATM LAN backbone market. Through this alliance, Bay
Networks extends our ATM capabilities to the desktop while supporting
critical Quality of Service, high bandwidth and low cost for multimedia
applications such as video-based training, distance-learning and desktop
video conferencing. Importantly, management of the Multimedia Switch will
be seamless, through integration with Optivity network management
software, providing our customers with a true end-to-end solution to
desktop video."

"Multimedia to the desktop addresses many business-intensive issues such as
congested videoconference facilities, training resource headaches, and
escalating travel expenditures," said Ralph Ungermann, CEO of First
Virtual Corporation. "Through this joint sales and technology partnership
with Bay Networks, we are able to integrate ISDN, H.320, AVI, MPEG, and
other multimedia standards with ATM in a manageable, cost effective
solution. This represents a significant opportunity for both companies to
provide our customers with a competitive advantage in decreasing costs and
increasing employee productivity."

Multimedia ATM Switch

The Bay Networks Multimedia Switch is supported under the Bay Networks
Switched Internetwork Services (BaySIS) architecture, encompassing the
entire enterprise - from desktops, LAN backbones and WAN backbones to
branch offices and mobile professionals. With the addition of the new
Multimedia Switch, Bay Networks offers the most extensive ATM networking
solution in the industry, providing ATM routing, ATM switching, LAN
Emulation and ATM desktop multimedia.

The Bay Networks Multimedia 25Mb/s ATM Switch will have a base
configuration of 8 25Mb/s ports, 2 OC-3 uplink ports, and an Ethernet
connection supporting LAN Emulation. The Multimedia Switch has a modular
architecture that supports configurations of up to 20 25Mb/s ATM ports.

Bay Networks will integrate the Multimedia Switch under Optivity, providing
both Autotopology and Expanded View applications. Integration with
Optivity will give users a new level of simplified management to manage,
configure and troubleshoot the 25 Mb/s ATM switch from a central
location.

Confirmed Interoperability

Bay Networks and First Virtual Corporation have already undertaken the
testing required to prove interoperability. The testing confirms the
ability of the Multimedia Switch to implement multimedia applications over
extended ATM infrastructures. The Bay Networks 5000AH ATM switch forms the
backbone of these networks and the Backbone Node (BN) router with the ATM
routing engine provides the highest performance and scalability ATM
routing solution in the industry, while the Multimedia Switch connects
workstations that have the requirement and ability to support multimedia
applications.

Pricing and Availability

The complete Bay Networks 25Mb/s ATM product set will be available early
second quarter 1996. The base configuration of eight 25Mb/s ports, 2 OC-3
uplink ports and an Ethernet connection supporting LAN Emulation starts at
$7,625. Pricing for adapters start at $635 and MOS software is available
individually or through multi-user licenses.

Bay Networks, Inc. is a leading worldwide supplier of a full range of
highly available, multiprotocol routers, intelligent hubs, high- speed
switches, and sophisticated network management products for organizations
building enterprise-wide information internetworks. Through the
acquisition of Xylogics, a leader in the remote access market, Bay
Networks also offers a complete line of award-winning analog, channelized
T-1 and ISDN remote access products that provide remote users and offices
transparent access to corporate network resources. With more than 1,750
resellers and 1,600 direct sales and service personnel worldwide, Bay
Networks markets and supports its comprehensive product suite in 121
offices, providing 7x24 global support coverage. Bay Networks' World Wide
Web address is: http://www.baynetworks.com.

Founded in October 1993, First Virtual Corporation is a desktop multimedia
networking company that specializes in enabling high quality, plug-
and-play desktop multimedia collaboration through the use of ATM
technology. FVC's multimedia networking hardware and software products
allow business users to collaborate with others by simultaneously
participating in video conferences, sharing information on demand,
accessing high speed data applications and tuning in to live broadcasts.
 
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