Bay Networks Introduces Carrier-Class Remote Access Management Tool For Service Provider And Enterprise Pro-Active Business Management.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 16, 1997--

-- Optivity Call Reporter Improves Efficiency

and Minimizes Downtime through Analysis

and Reporting on Remote Access Concentrator Data --

Bay Networks,(R) Inc. (NYSE: BAY) today introduced Optivity(R) Call Reporter -- a standalone, carrier-class management tool that captures, reports and displays historical call data information from the company's 5399 and 8000 Remote Access Concentrator products. The Bay Networks Optivity Call Reporter application enables both service provider and enterprise customers to pro-actively manage the edge of their dial access networks by reporting the call data necessary to analyze trends.

With Optivity Call Reporter, both enterprise and ISP customers now have a tool for capacity planning, network design/engineering, potential problem diagnosis, and remote access troubleshooting. Using a variety of report type options, network managers can produce detailed reports on connection/disconnection information, user activity, port and system utilization, inventory and others, from Bay Networks 5399 and 8000 Remote Access Concentrators.

In addition, one of the key business applications of Optivity Call Reporter is monitoring the Service Level Agreements (SLAs) associated with the remote access component of IP-based Virtual Private Networks (VPNs). Service providers can use Optivity Call Reporter as a tool to validate and justify the SLAs their VPN subscribers purchase -- thereby increasing their ability to generate additional revenue and increase profitability. Enterprise network managers also can utilize the application to justify their organization's investment in VPNs/SLAs for premium service.

"As part of the access cornerstone in Bay Networks Adaptive Networking strategy, Optivity Call Reporter adds the necessary intelligence to today's 'speeds and feeds' remote access mentality," said Kelly McGovern, vice president, Internet/telecom marketing at Bay Networks. "By utilizing Optivity Call Reporter, our customers are able to intelligently plan for capacity expansion, validate service level agreements and pro-actively manage their businesses. This is tremendously important for network managers who can use this data to recognize customer usage trends, plan for them and capitalize on them to make a profit."

Optivity Call Reporter Architecture

Optivity Call Reporter consists of three components: a data collection engine, Informix database, and reporting tool -- all residing on a desktop station. The data collection engine collects raw data from multiple 5399 or 8000 Remote Access Concentrators and sends the data to one central, SQL- based database which organizes the information. In addition, multiple data collection engines can be distributed throughout the network, all reporting through the database to the reporting tool. The reporting tool provides an easy-to-use interface to information stored in the database.

Different reports can be generated through various filters, including: modem connect speeds, signal quality, retrains, retransmissions, channel utilization, call duration, call volume and disconnects, inventory, system history, channels available and channels unavailable.

"Optivity Call Reporter lets us analyze our calls, identify trends, and use this data to troubleshoot problem areas and plan future capacity requirements based on actual trends," said Mike O'Connor, vice president, technology development at Delta Internet, a Southwestern regional Internet service provider. "With this tool we are able to demonstrate a high level of service and validate to our customers the ability to meet our stated 'Quality of Service' levels."

Pricing and Availability

Scheduled for availability in December 1997, Optivity Call Reporter is list priced at $3,995 (U.S) and includes a single user database license. The software application currently operates on Sun Solaris with planned support for HP/UX and IBM/AIX. A Java-enabled version is planned for Q3 CY 98.

About Bay Networks

Bay Networks,(R) 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 and Optivity are registered trademarks 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]

or

FitzGerald Communications, Inc.

Laura Fischman, 617/494-9500 ext.226

[e-mail]