Bay Networks To Aquire Performance Technology

Acquisition Extends Bay Networks' Internet Access Offerings

SANTA CLARA, Calif., February 21, 1996 -- Bay Networks, Inc. (Nasdaq: BNET)
today announced that it has entered into a definitive agreement to acquire
Performance Technology, Inc. for approximately $13 million in cash.

Performance Technology, a privately held company headquartered in San
Antonio, Texas, is a leader in LAN-to-Internet access, providing small
offices and small-to-medium-sized businesses easy, secure access to the
Internet. Performance Technology's Instant Internet" is an Internet access
server, the only all-in-one unit available to connect NetWare, Windows '95
and Windows NT users directly to the Internet without requiring any
time-consuming changes to LAN clients or servers. This approach contrasts
with software-only solutions, which require installation of software on
both clients and servers. Such solutions are less secure, degrade
performance, and are more complex for small operations to install and
maintain.

Performance Technology will become a Bay Networks business unit reporting
to Bruce Sachs, president and general manager of the Bay Networks Xylogics
business unit. Performance Technology President and CEO Paul Finke will
serve as vice president and general manager of the new business unit, with
Performance Technology management remaining intact. The Performance
Technology business unit will focus on adding value to applications that
simplify Internet access and management for small- to mid-sized businesses
and branch offices of enterprise organizations.

This acquisition supports Bay Networks' goal of providing WAN access
solutions that match the needs of a range of organizations, from
enterprises to small and home offices. The Performance Technology products
extend Bay Networks' Internet-enabled line, which includes ISDN, frame
relay and T1 remote access servers, routers and backbone solutions.

"Bay Networks recognizes that organizations have differing needs and
strategies for Internet access," said Bay Networks President and CEO Andy
Ludwick. "Performance Technology's Instant Internet provides a
cost-effective, elegant solution for small offices that seek quick, secure
access without the hassle of reconfiguring their server and each
workstation. This acquisition further supports our strategy to offer our
channel partners and customers at all levels a choice of appropriate
technology for extending their networks."

"Performance Technology and Bay Networks are the perfect match of a
market-leading WAN solutions provider with recognized industry experts in
LAN technology," said Paul Finke, Performance Technology's president and
CEO. "The synergy between our two companies' products and Bay Networks'
strong presence in the channel will greatly accelerate the deployment of
Instant Internet, already a front-runner in LAN- to-Internet
connectivity."

In October 1995, Performance Technology announced that UUNET Technologies,
the leading supplier of Internet services for business, would bundle
Instant Internet in UUNET's Internet 9-5 sm offering for LAN business
users. The UUNET solution combines the Instant Internet capabilities with
UUNET's high-speed, dial-up connectivity and domain name registration.

Because Instant Internet is a complete solution, it eliminates the need for
additional multiprotocol routers, modems and TCP/IP stacks. The benefits
of this approach include ease of use, security and access control.

Instant Internet provides a hardware security firewall, which prevents
potential Internet hackers from LAN access. Since the product does not
load TCP/IP at any network workstation or server, in dial-up mode it
inherently restricts IP to the Instant Internet box itself. Instant
Internet also enables small businesses to easily manage Internet access
for enhanced productivity. The product's interface makes it possible to
segment access to the Internet by classes of users or individual users.
For example, access to particular Web sites or the ability to perform
specific functions, such as downloading files, can be defined by users or
groups. Instant Internet is a complete solution and includes a bundled Web
browser, newsreader, FTP client, and Internet email applications.

Performance Technology was founded in 1985. The core engineering team is
recognized for its networking software expertise and is credited with
inventing ARCNET in 1977. Performance Technology's World Wide Web address
is http://www.perftech.com.

Bay Networks, Inc. is a worldwide leader in the internetworking market,
providing a full line of products that serve enterprises, small offices
and mobile workers. The company offers market-leading LAN and ATM
switches, hubs, routers, remote access software and network management
applications, unified by the BaySIS(tm) architecture. With revenue of $1.7
billion over the past four fiscal quarters, Bay Networks markets and
supports its products from 121 offices around the world, providing 7x24
support coverage. Bay Networks' World Wide Web address is:
http://www.baynetworks.com.
 
 =========================================================
 From the 'New Product News' Electronic News Service on...
 AOL (Keyword = New Products) and Delphi (GO COMP PROD)
 =========================================================
 This information was processed from data provided by the
 company/author mentioned. For additional details, please
 contact them directly at the address/phone# indicated.
 Trademarks are the property of their respective owners!
 =========================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  USA
 Email:   rbakerpc@aol.com   --or--   rbakerpc@delphi.com
 =========================================================
