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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: m thompson who wrote (6216)	6/4/1998 12:00:00 PM
From: Mark Oliver	Respond to of 6980

Netwave Acquisition To Help Bay Inter@ctive WeekJune 3, 1998 By Kimberly Weisul 11:00 AM EDT Bay Networks Inc. Vice President John Vogt said he's expecting the company's recent acquisition of Netwave Technologies Inc. to give Bay an entree into companies it might not have been able to approach before. "The focus is not on the direct revenues," said Vogt, a general manager of Bay Network's distributed networks systems group, referring to the Netwave acquisition. "It's going to be the pull effect." Netwave makes products that allow personal computer users to access a local area network (LAN) with wireless technology rather than through cables. Bay paid $10 million for the company and expects to account for the purchase as a charge for in-process research and development in the current earnings period. It intends to fully integrate Netwave products with its BayStack family of products within three months. Netwave's technology is especially well-suited to schools and hospitals, Vogt said. Education in particular "is a place we've really been trying to penetrate," he said, believing that wireless technology will provide an entree. Bay claimed that, with the Netwave acquisition, it becomes the first major networking company to fully endorse wireless technology. Vogt said that other companies have rolled out wireless products that were developed for a particular industry and aren't applicable to other types of businesses, or are selling wireless access that is not standards-based. Netwave was also attractive because it can be sold through the same channels that sell other Bay products. To use Netwave, companies must first install transmitters, costing approximately $1,500 each, at strategically located points in their LAN. Bay will provide software and support to help them do this. Everyone using the service then adds a card (costing roughly $500) to their computer so that they may receive signals from the transmitter.