Bay Networks Introduces Industry's First Extranet Access Solution Allowing Directory Enabled Provisioning for VPNs and Extranets.

LAS VEGAS--(BUSINESS WIRE)--May 4, 1998--

Extranet Switch 1000 Expands Extranet Market and

Adds Innovative New Features for the Provisioning, Deployment, and

Management of Extranets

Bay Networks, Inc. (NYSE: BAY) announced today at Networld+Interop its Extranet Switch 1000 -- an Extranet Access Switch which provides new functionality for easily managing and deploying VPNs and Extranets. Targeted at the broadest market segment, businesses with up to 50 simultaneous remote users, the Bay Networks Extranet Switch 1000 offers as much as a 75 percent cost savings over competing products while maintaining a rich feature set.

Combining market-leading functi solution for cutting operating costs and reducing management hassles, enabling companies to provide their partners and employees remote access via the Internet. The Extranet Switch 1000 includes the release of Bay Networks' Extranet Switch software version 1.5. This software update features new functionality, including support for L2TP, Novell IPX and Netware Directory support, Fault-Tolerant client capabilities, a T-3 WAN card for new scalability, and advanced Java-based monitoring and reporting.

Bay Networks Extranet Switch family is the first directory-enabled networking product line, supporting all leading directory technologies, including LDAP, RADIUS and Active Directory. As a result, the product features Directory-Enabled Provisioning (DEP) to simplify the management and deployment of Extranet Switches. The Extranet Switch 1000's role-based management feature allows the product to be managed by an IT manager, a service provider, or jointly by both.

"As companies aggressively deploy multiple Extranet Switches throughout their network, and service providers build out their infrastructure with Extranet Switches supporting multiple customers, real-time provisioning becomes a necessity," said Tom Pincince, vice president of business development, Bay Networks. "Bay Networks has built a solution which uses standards-based directories as a mechanism to allow network administrators to provision locally and configure globally. An IT administrator can now make a change at the directory once, and it is then pushed out automatically to all devices on the network."

The Extranet Switch 1000 enables the creation of "Personal Extranets," customized access to the corporate network based on each user's unique needs and identification. This feature enables even small companies to provide employees, partners and customers secure and personalized access to the corporate network.

"Moving forward, organizations will exploit the power of data VPNs by turning to their Service Providers for managed VPN services," said Michael Howard, CEO of Infonetics Research, an industry analyst firm based in San Jose, Calif. "It will be critical for Service Providers to easily manage and provision the wide-scale deployment of managed VPNs. By delivering a directory-enabled approach for provisioning, Bay's Extranet Switch family is well positioned to help service providers capitalize on this enormous opportunity."

With the release of the Extranet Switch software versioof Bay Networks' Access Division. "The 1 .5 releon."

The Extranet Switch 1000 is also fullows

Bay Networks, Inc. (NYSE: BAY) is aframe and ATM switches, routers, shared media, ich could cause results to differ from future ooking statements. -0- Note to Editors: Bacations, Inc.

Laura Fischman, 617/494-9500 ext. 226

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KEYWORD: CALIFORNIA MASSACHUSETTS

INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED PRODUCT TRADESHOW

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