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

To: chester lee who wrote (6249)	6/5/1998 7:28:00 AM
From: Glenn D. Rudolph	Respond to of 6980

Bay Networks signs tie-up with Japan's Net One Reuters Story - June 05, 1998 00:23 %JP %DPR %MRG %US BAY V%REUTER P%RTR TOKYO, June 5 (Reuters) - U.S. computer networking firm Bay Networks Inc said on Friday that it had signed a partnership agreement with Japan's Net One System's Co Ltd to market its new computer network system in Japan. The deal allows Net One exclusive rights to sell the Contivity Extranet Switch and provide support services to customers, Akio Saito, president of Bay Networks KK, the Japanese unit of the U.S. firm, told Reuters in an interview. "Japan has a well-established telecommunications infrastructure but it is immature in terms of data (industry). So Bay Networks has many opportunities to grow its business," he said. Saito said he expects sales in Japan to grow 30 percent year-on-year in the business year to June 30, 1998. Japan accounted for about five percent of the company's worldwide sales of $2.1 billion in 1996/97 business year. "Within the next three (business) years the Japanese data industry will see dramatic growth," Saito said. "(We) will be able to make sales grow three-fold compared to now." In five years Bay hopes to increase the ratio of its sales overseas to 50 percent from 39 percent in the 1996/97 business year. Saito said Japan's "Extranet," or extended Internet market, was virtually non-existent at the moment, but it had the potential to grow to be worth one trillion yen eventually. Bay's new product, which allows customers to set up a virtual private network, would allow companies in Japan to cut costs of private communications networks by up to 40 percent compared with conventional methods, said company marketing official Akihiko Ogura. Traditionally these type of connections have been made using cables between entities, but Contivity makes use of the Internet, he said.