Bay Networks' Shipments Surpass Thirty Million Network Connections

Leading HMO Takes Shipment of 30 Millionth Node on a System 5000
Intelligent Hub

Company Also Maintains Leading Position in Intelligent Hub Market with over
25 Million Network Hub Connections

BILLERICA, Mass., May 9, 1996 -- Demonstrating its market leadership in the
worldwide internetworking market, Bay Networks, Inc. (NYSE: BAY) today
announced it has shipped 30 million nodes across its entire product line
of hubs, routers and switches. Nodes are physical connections into which
users plug various networking devices such as printers, servers and
computers.

Bay Networks shipped its 30 millionth node today as part of a System 5000
intelligent hub destined for Harvard Pilgrim Health Care (HPHC), the
largest health maintenance organization in New England. With an installed
base of over 25 million hub network connections, Bay Networks is also the
world's leading supplier in the Ethernet and Token Ring intelligent hub
market.

"We are delighted to be the recipient of Bay Networks' 30 millionth node,"
stated Cecilia Claudio, Chief Information Officer at Harvard Pilgrim
Health Care. "Our new partnership with Bay Networks provides us with a
strategic and fully supported information networking architecture needed
for our expanding regional health delivery system."

Bay Networks Global Leadership

Shipping 30 million network nodes across all product lines, Bay Networks is
driving the internetworking field and holds a leadership position in the
switch, hub, router, remote access and network management markets.

In addition, Bay Networks is the world's leading supplier of intelligent
hubs. With an installed base of over 25 million hub connections, the
company leads with approximately 24 percent worldwide marketshare.*

"As a pioneer in the intelligent hub market, Bay Networks was the first to
develop and ship an intelligent hub that offers Ethernet, Token Ring and
FDDI, and was the first intelligent hub vendor to develop ATM technology,"
said Andy Ludwick, Bay Networks' president and chief executive officer.
"We look forward to working with customers, such as Harvard Pilgrim Health
Care, as they expand their healthcare networks to accommodate the broadest
range of systems and applications today and growth over time."

HPHC Information Network

Using Bay Networks System 5000 hubs, Centillion 100 Ethernet-to-ATM
switches, Fast Ethernet LattisSwitches and Optivity network management
software, HPHC is upgrading its existing Token Ring environment to a
high-speed switched internetwork to facilitate the sharing of clinical and
administrative information among the company's healthcare delivery sites.
HPHC's scalable ATM backbone network will provide increased bandwidth
capacity for corporate growth, while 10/100 Mbps switched desktop
connectivity will support a range of both existing and future office
automation and medical applications.

"To enhance the exchange of crucial patient data, clinical resources and
communication among our disparate healthcare systems, we needed to
re-engineer our legacy network to a more scalable and manageable
information healthcare delivery system," stated HPHC's Claudio. "The
integration of Bay Networks' switched internetworking architecture
supports our goals to provide greater bandwidth and reliable throughput
for increased network traffic and future expansion. The use of this
technology increases our ability to deliver high-quality healthcare to our
members throughout the region."

As an independent, not-for-profit corporation, HPHC's network of 16,000
physicians and 110 hospitals, including many of the Harvard University
teaching institutions, provides a broad range of affordable health
benefits coverage to more than one million members throughout
Massachusetts, Rhode Island, Maine and New Hampshire.

Bay Networks, Inc. is a worldwide leader in the internetworking market,
providing a full line of products that serve enterprises, workgroups,
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 $1.9 billion over the past four fiscal quarters, Bay
Networks markets and supports its products from 136 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.

* Estimates from "Scorecard for the LAN Vendors: Hub and Switch Market
Shares for the Second Half of 1995" Dataquest LAN Market Analysis, March
18, 1996.
 
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