Bay Networks Delivers 56 KBPS Products Supporting X2 Technology.

SANTA CLARA, Calif.--(BUSINESS WIRE)--November 19, 1997

56 Kbps x2 Technology Now Available in an upgrade for the RAC 

5399-x2 Module and Standalone Model 8000 RAC

Bay Networks,(R) Inc. (NYSE:BAY) today announced the release of its x2(TM) compatible 56 Kbps software upgrade for the Remote Access Concentrator (RAC) 5399-x2 module and standalone Model 8000 RAC. These products are now available in a version that is pre-configured for x2 or in a V.34 configuration that is upgradeable to x2 in the field.

x2 (56 Kbps) technology addresses the need for high-speed transmission, enabling users to access the Internet and other on-line resources at speeds up to 56 Kbps. The integration of x2 technology into Bay Networks' RAC 5399-x2 and 8000 RAC products will benefit customers with simplified, high-speed remote access to the Internet, World Wide Web and high-performance applications at download speeds significantly faster than standard V.34 modems. By supporting x2 technology, Bay Networks also will enable its ISP customers to serve a fast-growing market of x2 modem users requiring this high-speed technology today.

As part of the access cornerstone in its Adaptive Networking strategy, the Bay Networks x2 implementation enables the delivery of more IP-optimized networking services while reducing network complexity and costs. With x2 technology support, the Bay Networks remote access concentrator solution ensures complete interoperability for customers using 3Com's U.S. Robotics' x2 modems at the maximum 56 Kbps data rates.

"This product is the result of the cooperation and support by the technical staff at U.S. Robotics/3Com and the quality of their technical specifications," said Jonathan Sieg, vice president, Bay Networks Signal Processing Group. "Bay Networks is committed to the emerging 56 Kbps high-speed modem technologies and will be among the first to support true standards-based 56 Kbps connectivity."

"U.S. Robotics is pleased that Bay Networks recognizes the leadership position of x2 technology in the modem marketplace," said Joe Dunsmore, vice president of new business initiatives at U.S. Robotics. "By supporting x2 on their remote access platforms, Bay Networks will expand the broad base of ISPs that support x2 technology."

In addition to providing technical specifications and support, 3Com participated in x2 interoperability testing with Bay Networks during the product development process. Compatibility and performance were verified with all generally available x2 capable modems including the U.S. Robotics Sportster(TM) and Courier(TM) modems as well as the Cardinal(TM) and Megahertz(TM) line of x2 compatible modems. As part of its commitment to the success and support of its customers, Bay Networks will continue to verify new modems as they enter the market.

Based on the company's Digital Signal Processing (BayDSP(TM)) modem technology, the RAC 5399-x2 and 8000 RAC give customers the flexibility to upgrade to new and emerging technologies, such as the 56 Kbps standard, via a simple software download without incurring network downtime or additional costs. With support for up to 48 industry-standard V.34 33.4 Kbps digital modems and 56 Kbps technology for North American T1 applications, or 62 modems for international applications, and embedded BayDSP digital modem technology, Bay Networks' remote access concentrator product leads the industry in modem density, port cost and proven performance.

The software-upgradeable BayDSP platform allows Bay Networks to enable top performance as conditions change and new products come on-line. Once the ITU standard for 56 Kbps software (V.PCM) is released, the flexible BayDSP architecture will support a fully integrated 56 Kbps transmission solution via a simple software upload. "Even after the standard is released, Bay Networks will continue its commitment to support x2 technology for its customers. In all cases, software to support x2 and V.PCM will be distributed free to Bay Networks customers," added Sieg.

About Bay Networks

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.

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Bay Networks is a registered trademark and BayDSP is a trademark of Bay Networks, Inc. x2, Sportster, Courier, and Cardinal and Megahertz are trademarks of 3Com Corporation. Other brand and product names are registered trademarks or trademarks of their respective holders.

CONTACT: Bay Networks, Inc. FitzGerald Communications, Inc.

Matthew Burke Laura Fischman

978-916-1320 617-494-9500 ext. 226

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