Bay Networks Finalizes Aquisition of Armon Networking

Acquisition Strengthens Bay Networks' Leadership in Enterprise-wide Network
Management

SANTA CLARA, Calif., April 2, 1996 -- Bay Networks, Inc. (NYSE: BAY) today
announced the completion of its acquisition of the Tel Aviv, Israel-based
Armon Networking, Ltd., a worldwide provider of RMON-based distributed
analysis tools and multi-segment LAN probes. The acquisition expands Bay
Networks' network management leadership with client/server analysis
expertise, including RMON and RMON2 technology, which Bay Networks will
leverage across its entire product line.

Bay Networks acquired the privately-held Armon Networking for approximately
$33 million in cash. As a result of the acquisition, Armon Networking has
been integrated into Bay Networks' network management group, under the
name of Bay Networks Israel, Ltd.

Armon Networking's RMON technology allows Bay Networks to extend the
openness of its Optivity" network management application suite in the area
of end-to-end monitoring for multivendor environments. This acquisition
enables Bay Networks to build on its existing embedded and stackable probe
technology to deliver an integrated suite of next-generation RMON2-based
applications for the new stackable probe market. These new applications
will include client/server application monitoring, response time analysis,
network accounting and enterprise design tools.

Armon Networking, Ltd. established itself as a leading worldwide
manufacturer of distributed LAN monitoring and analysis network management
products. Its newest applications, NetReporter (for long-term, unattended
traffic collection and reporting) and EyeNet (for enterprise monitoring of
end-to-end conversations), complement its existing OnSite product line and
award-winning OnSite Manager software. OnSite includes single and
multi-segment RISC-based probes for Ethernet, Token Ring and FDDI
networks, and graphic management applications that integrate with SunNet
Manager, HP Openview and IBM NetView/6000. All products are based on the
SNMP and RMON Remote MONitoring standards.

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 and Internet access solutions, and network
management applications, all unified by the BaySIS 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.

Note to Editors: All Bay Networks press releases are available on Bay
Networks' web site at http://www.baynetworks.com. Bay Networks' web site
also provides information on the company's products and services, news and
events, partner programs, and corporate contacts.
 
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