Bay Networks Announces eNet Connections -- The Online Business Center; www.baynetworks.com Delivers Web-based Configuration, Pricing and Availability to the Channel.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 23, 1998--Continuing its commitment to the channel, Bay Networks today announced eNet Connections, its online business center at www.baynetworks.com/enet. Integrating new technologies, including a Web-based configuration tool and the ability to create a shopping list with access to real-time pricing and availability information, eNet Connections is designed to make doing business with Bay Networks faster and easier.

Bay Networks is utilizing Web technology to provide the channel with a seamless way to do business over the Internet. eNet Connections is designed to shorten the selling cycle for the channel by providing a complete product catalog, device configuration capabilities, and pricing and availability. Additional eNet Connections applications include a customized email newsletter that delivers user-specified information via email, and online customer service and support. Extended functionality on eNet Connections, including online purchasing and real-time order status, is expected later this year.

"We are committed to revolutionizing the way business is done on the Internet and making it easier to do business with Bay Networks," said Jorge Taborga, vice president and CIO of Bay Networks. "With eNet Connections, we are increasing efficiency with our channel partners and customers by empowering them to configure products online, and providing access to pricing and availability information quickly, easily and accurately through Web-based technology."

"Bay Networks new Configurator takes online device configuration to the next level. It's intuitive and accurate," stated Jim Serenbetz, vice president of Marketing at Anixter International, an enterprise solutions partner and Bay Networks largest systems integrator. "Bay Networks' Configurator enables our integration engineers to access product component information quickly allowing them to focus more of their time on the complex network designs and deployment services that best serve our Bay Networks customers. Additionally, the Configurator pricing and availability information promises to optimize our procurement and logistics processes."

An important part of eNet Connections is Bay Networks' Configurator. The Configurator contains a majority of Bay Networks product lines -- Accelar Routing Switches, BayStack Workgroup Products, Bay Networks System 5000, Bay Networks Routers, Centillion ATM Switches and Versalar Access Products. Bay Networks resellers and direct customers can access the Configurator at www.baynetworks.com/enet. The Configurator leads users through the various steps of the buying process, allowing them to determine specific requirements on a product-by-product basis. It also walks users through product options to ensure that the appropriate equipment and options are selected. In addition to the Configurator, Bay Networks offers the Network Modeler that lets customers create network models using the BayStack product line for campus environments. It can be used as a starting point from which companies can create their own network.

Once products are configured, all users can transfer their product information to their Shopping List, which acts as a repository for intended purchases. The Shopping List is the gateway to pricing and availability information. All users will have the option to download their list to a spreadsheet to be used as a basis for submitting an order. Registered users can also save a list as their "Favorite List" for future reference. -0-

     With eNet Connections, Bay Networks offers resellers and direct
customers the following competitive advantages:

--   The ability to quickly, easily and accurately configure products,
     making it easier for resellers to design networks

--   The ability to build a comprehensive list of products and
     accessories that can be transferred to the Shopping List

--   The ability to access real-time pricing and availability
     information to increase profitability

-0-

Availability

The Bay Networks Product Catalog, Configurator and Shopping List are available today at http://www.baynetworks.com/enet. Registered users can access the U.S. product list price of a specific product 7x24 without having to call Order Administration or North American Presales.

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, Calif., 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, contains 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 timing of customer orders, the rate of adoption of new technologies in the data networking market, and competitive pricing actions, 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.

Note to Editors: Bay Networks is a registered trademark. Bay Networks -- Where Information Flows, Accelar, BayStack and Centillion are trademarks of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

    CONTACT: FitzGerald Communications for Bay Networks
              Stacy Breines, 415/986-9500
              [e-mail]