IDC Study Names Bay Networks the Leader in Embedded RMON-Based Network
Management

Worldwide Market Share of 41 Percent Represents Significant Lead for Bay
Networks in Providing Customers with Network Management Capabilities

BILLERICA, Mass., January 24, 1996 -- According to International Data
Corporation (IDC), a leading worldwide computer industry research firm,
Bay Networks (NASDAQ: BNET) is the 1995 market leader among network
hardware vendors supporting RMON-based management through embedded
hardware probes. Bay Networks captured 41 percent worldwide market share,
nearly twice that of its nearest competititors 3Com and Cabletron.

According to Brian Burba, author of the IDC report, "Bay Networks owes its
dominant market position to its strength in delivering full RMON support
and its consistent effort to incorporate RMON across its entire product
line... RMON support is nearly ubiquitous in the Bay line of network
devices." According to IDC's report, The RMON Market, Bay Networks closed
sales of embedded RMON totaling $126 million in a market that reached $293
million for the year, a 111 percent increase over 1994's market of $139
million.

In September 1995, Bay Networks announced availability of a new suite of
RMON design and analysis tools that provide the industry's first support
for enterprise-wide network layer monitoring. At that time, Bay Networks
also articulated its strategy for delivering RMON and RMON2 across its
entire product line of hubs, routers and switches. The emerging RMON2
standard enables network managers to view traffic flow across the
enterprise network - from the network through the application layers. This
allows network managers to view traffic as it moves across the enterprise
at each layer of the OSI model - a capability that has a significant
benefit when managing client/server environments.

According to IDC, 1995 sales for embedded RMON grew 111 percent from 1994.
The report projects sales of embedded RMON to grow 54 percent CAGR
(compounded annual growth rate) through the year 2000. IDC attributes this
explosive growth to demand for proactive network management driving
widespread adoption of full RMON followed by RMON2.

"In today's increasingly complicated and distributed environments, network
managers and IT professionals require robust management facilities to
manage, monitor and troubleshoot client/server-based networks and
applications," said Jim Goetz, director of network management at Bay
Networks. "By integrating RMON and RMON2 functionality across our entire
product line, Bay Networks continues to lead the market by being the only
company providing customers with the ability to view and analyze their
traffic end-to-end across the enterprise. These results from the IDC
report reflect Bay Networks' strong commitment to intelligent
standards-based network instrumentation to support production
client/server networks."

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.
 
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