Bay Networks Names David L. House Chairman, President and CEO; Long Time Senior Intel Executive Is Proven Leader in Computer Industry.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 30, 1996--The board of directors of Bay Networks Inc. (NYSE: BAY) today announced that David L. House, 53, a long time senior Intel executive, has been named chairman, president and chief executive officer of Bay Networks.

Paul J. Severino, currently chairman and acting CEO, will continue as a director.

"As one of the key architects of Intel's phenomenal success, Dave House is a proven leader in the computer industry," said Severino. "His 30 years of big-league management experience, in-depth knowledge of the PC and enterprise marketplace, marketing skills, and close personal relationships with key executives throughout the industry make Dave an outstanding choice to build on the foundation that has been put in place over the past two years."

"Bay Networks is an exciting company in a rapidly growing industry," said House. "Bay is well-positioned with leading-edge technology, a broad product line, a large installed customer base and talented employees. I am delighted to have this unique opportunity and confident I can provide the leadership for Bay to achieve its potential in the years ahead."

During his 22 years at Intel, House served in a number of key management, marketing and strategic planning roles. From 1978 to 1991, House was general manager of the Microcomputer Components Group, growing its revenues nearly 100-fold from $40 million to nearly $4 billion. In this role, House led the effort to win IBM's agreement to adopt Intel architecture for the first IBM personal computer.

During 1991, House was a corporate senior vice president and head of Intel's Architecture, Marketing and Applications Group, managing all corporate marketing activities and overseeing the introduction of the highly regarded "Intel Inside" campaign. He also formed the Intel Architecture Labs which continues to set advanced industry platform standards, and worked closely with major end-users on a wide variety of applications.

From 1992 through early 1995, as senior vice president of Corporate Strategy, House was a key architect of Intel's major strategic alliances, including the 1994 Intel/Hewlett-Packard alliance for 64-bit architecture. In that post, he was also responsible for representing Intel to key customers and financial audiences. Most recently, House was senior vice president and general manager of Intel's Enterprise Server Group, another multi-billion dollar business.

House began his professional career in 1965 at Raytheon, where he worked on the design of computers and data acquisition systems, particularly on fault-tolerant redundant systems for the Federal Aviation Administration.

He joined Honeywell's Computer Control Division in 1969 where he managed minicomputer development and received Honeywell's highest technology award, the H. W. Sweatt Engineer Scientist Award for his definition and development of a new computer. In 1972, he moved to Microdata as director of Computer Development, before being recruited to join Intel in 1974.

House earned a B.S. degree in Electrical Engineering from Michigan Technological University in 1965 and received his M.S. in Electrical Engineering from Northeastern University in 1969.

House was selected following a nationwide search conducted by Heidrick & Struggles, a leading global executive search firm specializing in CEO and chairman assignments.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ in a material way from actual future events. For instance, factors which could cause results to differ from actual future events include rapid rates of technological change and intense competition, among others.

Readers are also referred to the documents filed by the company with the S.E.C., specifically the last reports on Form 10-K and 10-Q which identify important risk factors for the company.

Bay Networks Inc. is a worldwide leader in the internetworking market, providing a full line of products that serve enterprises, workgroups, small offices and mobile workers. The company offers LAN and ATM switches, hubs, routers, remote and Internet access solutions, and network management applications, all unified by the BaySIS(TM) architecture.

With revenue of $2.1 billion over the past fiscal year, Bay Networks markets and supports its products around the world, providing 7x24 support coverage. Bay Networks' World Wide Web address is: http://www.baynetworks.com. -0-

Note to Editors: All Bay Networks press releases are available on Bay Networks' web site at http://www.baynetworks.com or via CompuServe using GO BAYNET. Bay Networks' web site also provides information on the company's products and services, news and events, partner programs, and corporate contacts.

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

CONTACT: Bay Networks

Beth Pampaloni, 408/495-2904

[e-mail]

or

Linda Fellows, 408/495-1964

[e-mail]