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Technology Stocks : BAY Ntwks (under House)

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To: Paul Lee who wrote (5008)3/30/1998 11:45:00 AM
From: George A. Roberts   of 6980
 
Monday March 30, 8:59 am Eastern Time

Company Press Release

Bay Networks Becomes First Major networking Vendor to Deliver Branch Office Router with
10/100BASE-T Autosensing

--Baystack Advanced Remote Node (ARN) provides easy migration to Fast Ethernet technologies in the remote office--

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 30, 1998-- Bay Networks, Inc. (NYSE:BAY - news) today announced significant enhancements to the
BayStack(tm) Advanced Remote Node (ARN(tm)) access router, including the delivery of 10/100BASE-T autosensing in branch office routers. Integrated T1/FT1
DSU/CSU, BaySecure(tm) Firewall-1 security, and support for X.25 legacy applications are also new features shipping on the product today. The ARN router's
performance and level of integration are unmatched by other leading branch office routers, delivering an easy-to-manage solution for the rising bandwidth demands of
existing and future applications, including Internet access and multimedia. The ARN router is a key product in Bay Networks' aggressive strategy to continuously
create more value at the edge of the wide area network, as articulated today in a separate announcement detailing the Access Cornerstone of Adaptive Networking.

''The new options to the ARN product further enhance its position as the industry's best-in-class branch router solution, and reinforce our commitment to providing
customers with open solutions that meet their current and future connectivity requirements,'' said Kelly McGovern, vice president of Internet Telecom Marketing at
Bay Networks. ''Bay Networks' first to market support for 10/100 autosensing offers the option to support Fast Ethernet today -- or tomorrow -- as high
bandwidth applications and multimedia migrate from a central office focus to a branch office necessity. Combining BayRS(tm) industrial strength routing with industry
leading Firewall-1 security on a low cost platform with integrated T1/FT1 DSU/CSU and auto sensing 10/100BASE-T creates the ideal Internet access solution.''

The BayStack ARN product is the fastest, most flexible, low-cost branch office router in the industry with autosensing 10BASE-T/100-BASE-TX. Because intranet
use and application complexity is growing exponentially, keeping pace with bandwidth demands is critical to network performance. LAN upgrades from 10 Mbps to
100 Mbps will be autosensed and supported without administrative intervention, making these transitions seamless.

''The BayStack ARN offers the speed I need in remote sites, for a fraction of the cost of comparable products,'' said Jay Cann, senior telecommunications analyst,
Arkwright Mutual Insurance Company. ''With 10/100 autosensing I get the performance, dependability and ease-of-installation that I require in order to deploy
multiple applications quickly.''

Additional ARN enhancements include:

Integrated T1/Fractional T1 DSU/CSU module. The module incorporates a fully managed T1 Data Service Unit/Channel Service Unit that simplifies the
deployment and management of Internet and intranet connectivity. It enables enterprises to deploy integrated high-speed branch office connectivity solutions
that can be centrally managed as single devices.
BaySecure Firewall-1. Bay Networks has bolstered the requirement for air-tight security. BaySecure Firewall-1 manager simultaneously supports multiple
routers with firewall agents, centrally applying network security policy. By adding integrated firewall support, enterprises with networks having even hundreds
of routers can benefit from a seamless FireWall-1 solution.
X.25 PAD. The ARN X.25 PAD provides support for legacy applications that use the X.25 protocol for communications. As networks migrate from X.25 to
more cost-effective backbone networks such as IP over Frame Relay, the ARN X.25 PAD provides an easy migration path to an IP based network.

The Bay Networks BayStack Advanced Remote Node (ARN)

The ARN router delivers an innovative, flexible access router architecture with the performance and modularity to solve today's application needs and meet the
increasing demands of the evolving corporate intranet. It can deliver Ethernet, Token Ring and now autosensing 10Base-T/100Base-TX for LAN connectivity. Its
serial port density enables multiple legacy data (SNA, BSC, polled async and X.25) devices to be integrated directly into the ARN product. Integrated CSU/DSU,
ISDN BRI, modem and RMON2 probe options help ease remote network management. As a result, the ARN router significantly lowers total cost of ownership and
provides the highest degree of investment protection for enterprise networks.

List Pricing

ARN Router Base Unit $2645 Integrated T1/Fractional T1 DSU/CSU module $1195 BaySecure Firewall-1 $1500 X.25 PAD $1500

About Bay Networks

Bay Networks - Where Information Flows(tm). Bay Networks, Inc. (NYSE: BAY - news) is a leader in the worldwide networking market, providing a complete
line of products that serve corporate enterprises, service providers and telecommunications carriers. The company offers frame and ATM switches, routers, shared
media, remote and Internet access solutions, IP services and network management applications, all integrated by Bay Networks' Adaptive Networking strategy.
With headquarters in Santa Clara, California, Bay Networks markets its products and services around the world, providing 7x24 support coverage. For additional
information visit the company's World Wide Web site at baynetworks.com or call 800-8-BAYNET.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ
materially from actual future events or results. For instance, factors which could cause results to differ from future events include the rate of adoption of new
technology, competitive pricing actions and marketing programs, among others. Readers are referred to the documents filed by Bay Networks with the S.E.C.,
specifically the most recent reports on forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in
the forward-looking statements.

Bay Networks is a registered trademark of Bay Networks, Inc. Bay Networks - Where Information Flows, BayRS, BayStack and ARN are trademarks of Bay
Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

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Bay Networks Inc (NYSE:BAY - news)
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