Bay Networks Delivers Network Infrastructure for ATM Year 98; Provides Connectivity to Exhibitors and Attendees Using MPOA and PNNI.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 3, 1998--Bay Networks,(R) Inc. (NYSE:BAY) reinforced its commitment to providing leading-edge ATM technology and promoting interoperability and open standards by supplying the network infrastructure at ATM Year 98 in San Jose, Calif.

Linking virtually every element of the ATM Year 98 network, Bay Networks is providing NET@ATMyear, the premier example of multi-technology, multiprotocol interoperability in the networking industry.

The objectives of NET@ATMyear are to provide a stable production network for exhibitor and attendee use, and to showcase emerging networking technologies, such as Multiprotocol over ATM (MPOA) and the Private Network to Network Interface (PNNI) dynamic topology protocol, in a real-world environment.

Bay Networks utilizes many of its products to help build and manage this enterprise network, which integrates ATM switches, multiprotocol routers, routing switches and network management tools.

These products include the System 5000(TM) BH LAN-ATM switches, Model 5782 Centillion(TM) Multiprotocol Engine (MPE), Centillion 100 LAN-ATM switches, Accelar(TM) 1200 routing switches, BLN(R) router, BCN(R) router, BaySecure Firewall-1, and Optivity(R) network management tools.

The NET@ATMyear network will demonstrate several key ATM technologies, including: -0-

--   MPOA Servers running on the System 5000BH platform using the
     Centillion MPE;

--   MPOA clients running on the System 5000BH and Centillion 100
     LAN-ATM switches;

--   PNNI running between the System 5000BH and Centillion 100 LAN-ATM
     switches;

--   Multiple ATM links between switches providing redundancy and load
     balancing using PNNI;

--   Redundant LANE services providing fault tolerance;

--   10Mbps and 100Mbps Ethernet connections are provided to
     exhibitors using the System 5000BH and Centillion 100 LAN-ATM
     switches;

--   Gigabit Ethernet connections are provided to exhibitors using the
     Accelar 1200 routing switch

     Bay Networks is also exhibiting at ATM Year 98, in Booth No. 222.

-0-

About ATM Year 98

ATM Year 98 is the world's largest and most authoritative event for ATM and related broadband technologies. The conference and exhibition will be held June 1 through June 5 at the San Jose Convention Center in San Jose, Calif.

The theme of the event is "Where Technology and Education Come Together," and the exhibition features the latest ATM products, services and technologies from more than 100 vendors. For more information, please visit the ATM Year 98 Web site at http://www.atmyear.com.

About 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. -0-

Note to Editors: Bay Networks, BCN, BLN and Optivity are registered trademarks and Accelar, Bay Networks -- Where Information Flows, Centillion and System 5000 are trademarks of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

    CONTACT:  Bay Networks, Inc.
               Erin Curtis, 408/495-3619
               [e-mail]