Banyan Systems Incorporated Announces New Three-Year, $15 Million Credit Facility.

WESTBORO, Mass.--(BUSINESS WIRE)--Sept. 16, 1997--Banyan Systems Incorporated (NASDAQ:BNYN) announced today that it has obtained a three-year, $15 million credit facility from Foothill Capital Corporation of California, a Norwest company.

The new credit facility will be available to support Banyan's ongoing working capital needs, as well as to pursue strategic opportunities for business expansion. The Company's agreement with Foothill Capital replaces the Company's previous $10 million credit facility, which expired in May 1997. Each year during the term of the new credit facility, Foothill will be granted warrants to purchase 75,000 shares of Banyan common stock at an exercise price equal to fair market value on the date of grant.

William P. Ferry, Banyan's president and chief executive officer, stated, "We continue to make measurable progress toward improving the Company's operations. The establishment of this agreement with Foothill Capital is a key element in our strategy to rebuild Banyan. This line of credit offers additional financial support for our efforts to rejuvenate our business by delivering enhanced value to our customers' networking environments and by capitalizing on Internet-based opportunities to leverage our core directory and messaging technologies."

Peter Schwab, president of Foothill Capital, commented, "We are pleased to provide Banyan Systems, a leading provider of networking software solutions, with financing to support its business objectives. With the credit facility, Foothill Capital is playing an important role in enabling Banyan to strengthen its financial position and address the needs of both current and prospective new customers worldwide."

As a result of Banyan's reorganization activities, Banyan is also in discussions with Nasdaq concerning the continued listing of Banyan on the Nasdaq National Market. In addition, certain of the information in this press release, including statements contained in the third paragraph concerning the future business of Banyan, are forward-looking statements. There are a number of important factors that could have actual results to differ materially from those suggested or indicated by such forward-looking statements. These factors include the Company's ability to successfully implement its recent reorganization of operations, the outcome of the Company's discussions with Nasdaq concerning the continued listing on the Nasdaq National Market and the other factors identified in the Company's periodic reports filed with the SEC, which are incorporated herein by reference.

About Banyan Systems Incorporated:

Banyan Systems Incorporated (NASDAQ:BNYN) is a pioneer and leader in enterprise networking, directory and messaging services. These products help people to find, share and manage information and resources easily across enterprise networks, corporate intranets and the Internet. Founded in 1983 and headquartered in Westboro, Massachusetts, USA, the company markets products worldwide through authorized network integrators, resellers and international distributors. Banyan can be reached on the World Wide Web at http://www.banyan.com . Banyan is a registered trademark of Banyan Systems Incorporated.

CONTACT: Banyan Systems Incorporated

Richard M. Spaulding, [phone]

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