Bay Networks Introduces Bay Services Methodology.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 1, 1997--

-- Partner-Oriented Methodology Ensures Consistent Marketing and

Delivery of Bay Networks Professional Services Whether Sold Via

Direct or Indirect Sales Channels --

-- Company Delivers First Modules for Network Design

and Network Audit --

Bay Networks,(R) Inc. (NYSE:BAY) today announced Bay Services Methodology -- a professional services methodology that simplifies and ensures consistency in the marketing and delivery of value-added professional services offerings for Bay Networks' channels and selected service partners. In support of the company's commitment to consistency in the development and implementation of professional services, this new methodology is designed to ensure that both Bay Networks internal and external sales channels have the tools needed to assess a customer's business situation and consistently deliver a full turnkey service solution. The methodology's goals include:

-- Ensure that customers receive a consistent product in multiple

locations, through any delivery channel; -- Instruct internal and external sales channels in the positioning

and marketing of Bay Networks Professional Services; -- Ensure consistency in the implementation and pricing structures

of Bay Networks Professional Services, whether sold via direct or

indirect sales channels; -- Communicate a consistent message and methodology that fully

explains Bay Networks service offerings to partners and end-user

customers.

"As today's organizations continue to grow their network environments with IP networking solutions and technologies, they are increasingly turning to partners that can add more value-added services to better support the IP-optimized networks of tomorrow," said John Igoe, vice president of North American customer service at Bay Networks. "With this announcement, Bay Networks is taking a leadership position in providing a complete solution for selling and implementing Bay Networks Professional Services in a consistent manner. Bay Services Methodology is designed to ensure that customers receive the same service regardless of customer location or delivery channel."

"Many network service customers are increasingly frustrated when trying to purchase services for their networks because, despite the service option selected, they often cannot get the same service delivered consistently across the enterprise," said Ellen Carney, senior industry analyst in Dataquest's Network Integration and Support Services group. "By capturing the knowledge of its senior consultants, sales and customer services groups, Bay Services Methodology provides partners with a valuable tool that differentiates their service offerings, while ensuring that the ultimate customer is furnished with a solution that fully addresses their business needs -- regardless of where and through whom the service is delivered."

Network Design and Network Audit

Bay Networks Professional Services benefit customers with a flexible, cost-effective network solution that complements the existing infrastructure, supports strategic business objectives, and responds to new and expanding technologies. The new methodology will feature several value-added Bay Networks Professional Services offerings, such as network planning, analysis, design, implementation, operation and management.

As part of this announcement, Bay Networks is introducing the first two modules in the methodology portfolio: Network Design and Network Audit. Bay Networks' Network Design provides cost-effective, expert network analysis and design services to help end-users develop an efficient network design. Network Audit is designed to help analyze and solve immediate, critical network problems and improve data flow throughout the network.

Each module provides the materials necessary to successfully position, market and execute a network design or a network audit. These new modules equip channel partners with a complete package of collateral and templates, including a sales support kit, customer assessment tools, service proposals, delivery guidelines, data finding reports, contact information, and training, needed to sell and deliver Bay Networks' Network Design or Network Audit services consistently worldwide. The company is also developing additional modules for future delivery to address the needs of existing and new distribution channels.

Bay Services Methodology is currently implemented and delivered by Bay Networks' sales and service delivery organizations for professional service engagements. This same methodology soon will be offered to Bay Networks' major channel reseller partners.

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. -0-

Bay Networks is a registered trademark of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

CONTACT: Bay Networks, Inc.

Matthew Burke

978-916-1320

[e-mail]