Bay Networks Announces Industry's First Integrated Routing, Switching,
Shared Media and ATM Functionality in a Single Platform

Scalable Routing, Virtual Network Routing, LAN Switching Capabilities added
to System 5000 Delivers Flexible, Powerful Enterprise Network Solution

LAS VEGAS, Nev., April 2, 1996 -- In a move designed to address increasing
enterprise network performance demands while reducing complexity and
simplifying network management, Bay Networks (NYSE: BAY) today announced
new routing and LAN switching modules for its market-leading System 5000
enterprise hub. These additional features deliver unprecedented
integration of switching, routing, shared media and communications
services in a single enterprise hub.

The new System 5000 modules include: the industry's first integrated
virtual network routing module for connectivity to existing LAN virtual
networks and migration to ATM; an Ethernet/Fast Ethernet switch module for
LAN switching; and router modules for scalable routing to existing local
area networks (LANs) and wide-area networks (WANs).

Enterprise networks are increasing in complexity, propelled by changing
business needs, competitive pressures and technology dynamics.
Organizations are moving beyond simple data sharing to introducing
bandwidth-demanding strategic applications such as client/server,
multimedia and video. Additionally, telecommuting and mobile workers are
fast becoming the norm for most businesses. Demands for access to the
Internet and corporate intranets are also growing rapidly. Such
requirements are straining network performance because increasing numbers
of users are competing for a fixed amount of bandwidth.

These performance challenges are coupled with shrinking staffs and budgets,
a need to maintain support for existing applications, and the ability to
meet these goals with a solution that provides the flexibility to
accommodate future requirements. Often, the right answer is a mixture of
technologies - but that decision typically results in multiple hardware
solutions.

"Bay Networks recognizes the pressures our customers face in supporting new
users and applications in fast changing environments," said Peter Tarrant,
vice president of product management for Bay Networks' Hub Product
Business Unit. "When we introduced the System 5000 as our strategic
network platform, we did so with the intention to provide customers with
solutions that would consolidate LAN switching, routing, shared media,
communications services and network management in one system, with a
migration path to ATM. Today's announcements represent a significant
milestone in accomplishing this goal."

Utilizing a sophisticated multibackplane architecture, the System 5000 is
the only enterprise hub that incorporates all shared LAN technologies,
frame and cell-based switching, routing and communications services
simultaneously with no performance degradation. Deploying different
technologies is as simple as swapping modules. The System 5000 supports
Ethernet, Fast Ethernet, Token Ring, FDDI and ATM.

The Industry's Only Integrated Virtual Network Router

Unlike competitive solutions that require multiple connections and systems
to connect disparate virtual LANs, the ATM Virtual Network Routing Module
in the System 5000 provides the connections through a single interface. As
a component of the ATM backbone solution, this integrated routing
capability delivers high-speed routing between multiple virtual LANs over
ATM, and connects ATM networks to frame-based FDDI, Ethernet and Token
Ring networks. Performance is unequaled, with throughput at wire speeds of
120,000 packets per second. Importantly, because the ATM Virtual Network
Routing Module includes Bay Networks Routing Services (BayRS) software, it
enhances interoperability through support for all major network and
bridging protocols, wide area services and IBM standards.

Scalable Integrated Routing

Integrating routing within the System 5000 delivers market-leading
scalability while easing network design, because multiple protocols and
interfaces are supported. Additionally, integrated routing provides a
migration path from shared media to ATM. The Router Modules also
facilitate performance of applications in remote offices and medium-sized
data centers, and can terminate WAN traffic.

Based on Bay Networks' proven router technology, the new modules support
four Ethernet or Token Ring hub backplane interfaces and two optional
Ethernet, Token Ring, FDDI, 100BASE-T, synchronous and ISDN BRI network
modules. This flexibility allows a network manager to start with a single
slot router module and add to it as performance needs grow. Performance
ranges from forwarding rates of 50,000 packets per second for a single
module up to 200,000 packets per second in a four-module configuration.

The Router Modules support BayRS, as well as Parallel Packet Exchange
(PPX), Bay Networks' backplane interface. PPX allows the interconnection
of multiple routers within the 5000 and forms an extensible router that is
managed as a single unit. This significantly eases management and
maintenance, and reduces costs.

LAN Switching Combined with Shared Media Delivers High Performance at Half
the Cost of Desktop Frame Switching

Most networks today are shared-media solutions, such as Ethernet, Token
Ring and FDDI LANs. Virtually all enterprises have significant investments
in shared-media applications that must be protected while migrating to
technologies that provide increased bandwidth. For the vast majority of
workgroup, departmental and remote office applications, shared media still
provides the performance required at affordable costs, even when many more
users have been added to the network.

The new Ethernet Switching Module dramatically increases available
bandwidth on shared-media LANs by segmenting network traffic to reduce
data bottlenecks, while protecting shared-media investments. Featuring two
gigabits per second of internal switching capacity, the Ethernet Switching
Module supports different interfaces on a single module, allowing the
choice of 10 Mbps, 100 Mbps or FDDI connectivity. Non-blocking wire speed
performance is delivered to all ports regardless of configuration.
Bandwidth to the desktop is increased significantly, but at half the cost
of typical desktop frame switching solutions.

Configuration switching allows the assigning of geographically distributed
users and devices to the same logical workgroups, regardless of their
physical location, enabling performance-tuning of the network without
having to physically change connections. This flexibility allows
organizations to effectively address their business objectives rather than
being unnecessarily constrained by network design.

For maximum network availability, a redundant link capability allows fault
tolerant connections to other switches or shared media segments. VLAN
support includes up to 32 VLANs per switch, and up to 64 VLANs per
community.

Simplified Network Management

Like all Bay Networks products, the System 5000 is managed by Optivity,
"the world's most popular suite of network management applications.
Optivity provides a comprehensive approach for monitoring and controlling
network performance, eliminating the need for multiple stand-alone devices
and reducing network complexity without sacrificing performance,
functionality or control.

Pricing and Availability

The suggested list price of the System 5000 starts at $8,000 U.S. The
Ethernet/Fast Ethernet Module ranges from $12,000 to $31,000 U.S.
suggested list price. The Routing Modules range from $13,000 to $32,000
U.S. suggested list price. And the ATM Virtual Network Routing Modules
range from $25,500 to $35,500 U.S. suggested list price.

The Ethernet/Fast Ethernet Module is shipping now. The Routing Modules and
ATM Virtual Network Routing Modules will be available in the second
quarter of calendar year 1996.

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' home page at http://www.baynetworks.com or via CompuServe using
GO BAYNET. Bay Networks' home page also provides information on the
company's products and services, news and events, partner programs, and
corporate contacts.
 
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