Bay Networks Adds Support for IP-Based LANs to BayStack Instant Internet "Internet Access Gateway;" Internet Access Gateway Provides Small Business IP-Only Networks with Easy and Secure LAN-to-Internet Access.

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 13, 1998--Bay Networks,(R) Inc. (NYSE:BAY) today announced Instant Internet(TM) software version 5.0. This upgraded version of the Instant Internet(TM) Internet Access Gateway software significantly expands Bay Networks' reach into the small business IP-based Local Area Network marketplace by offering the same security, ease of installation and use, and management features previously available only to IPX-based networks.

Baystack Instant Internet, the long time leader for providing Internet connectivity for IPX LANs, has transported that same award-winning functionality to IP-only Networks. Bay Networks' unique ability to work with IPX, IP, and mixed IP/IPX LANs provides users with a smooth migration path from one platform to another. Software version 5.0 also adds support for Network Address Translation (NAT), Dynamic Host Configuration Protocol (DHCP), and secure remote management functionality.

"We found the Instant Internet product when we were looking for a secure way to provide Internet access for our employees while not compromising the security of the LAN," said Zee Aganovich, President of Cylex Systems. "We have kept Instant Internet because it works. It completely adapted to our network seamlessly, and works so well that we forget it is even there."

Instant Internet version 5.0 has three proxy options that can be used singly or in any combination for unmatched firewall protection. It ships with an RFC compliant SOCKS layer 5 proxy, an HTTP proxy, and Network Address Translation (NAT). NAT acts as a layer 3 proxy firewall and allows Instant Internet to translate an internal IP address or network into a globally unique IP address.

Instant Internet's Dynamic Host Configuration Protocol support enables Instant Internet to function as a local DHCP Server. IP addresses can be dynamically allocated to LAN clients. Remote Management support allows all aspects of the operation of Instant Internet to be monitored and managed remotely via Telnet or across the Internet. This Remote Management is secure and protected by both password and internal administrator control.

"For the past two years, Instant Internet has been known as the easiest, safest, and fastest way to connect an IPX-based LAN to the Internet," said Rod Frey, General Manager of Bay Networks' Internet CPE Division. "Software version 5.0 enables us to offer our Internet Service Provider customers with an Internet connectivity solution that is remotely manageable, and provides their customers with a secure and easy migration path from an IPX to an IP-based LAN."

About the Instant Internet Family

The Instant Internet 100 and the Instant Internet 400 Internet Access Gateway products are complete solutions designed to connect an entire local area network (LAN) to the Internet through a single IP address. Instant Internet is completely adaptable to the LAN, working seamlessly with Windows 95, Windows NT, Windows 3.x, OS/2, Mac, Unix, and Novell clients. The Instant Internet 100 ships with a choice of analog modem or ISDN access and will typically service an office of up to 20 clients.

In an office of 20 to 100 users, the Instant Internet 400 product is recommended because of its high-speed (T1) capability with integrated CSU/DSU. Multiple boxes can be connected to the network supporting additional users, load balancing, and fault tolerance. Both Instant Internet products offer complete firewall protection for the LAN and a comprehensive set of user access management tools.

Bay Networks -- Where Information Flows(TM)

Bay Networks, Inc. (NYSE:BAY) 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 http://www.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. -0-

Note To Editors: Bay Networks is a registered trademark and BayStack and Instant Internet are a trademark of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

CONTACT: Bay Networks, Inc.

Don Gross, 210/979-2155

[e-mail]

or

FitzGerald Communications

Allen Reitz, 617/588-2268

[e-mail]