Bay Networks Strengthens Backbone Node Router with New Products to Enhance Performance; Completes the Gigabit Solution for Local Area Networks.

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 18, 1998--

-- Gigabit Ethernet Module extends high speed Layer 3 gigabit

campus networks to the wide area network (WAN) --

Bay Networks(R), Inc. (NYSE:BAY) today announced a range of new products to enhance its high end Backbone Node (BN(R)) router product line, including a Gigabit Ethernet Module and a next generation Power PC-based Fast Routing Engine (FRE(R)) processor which will increase the BN router's performance to more than 3 million packets per second.

The addition of Gigabit Ethernet to the BN product line completes the Layer 3 campus solution that begins with the Bay Networks Accelar(TM) line of high performance routing switches in the local area network (LAN) backbone. By introducing a Gigabit Ethernet link module for its high end router, Bay Networks completes the customer requirement to have a high speed Layer 3 Gigabit LAN campus network which extends to the wide area for remote office concentration, linking all remote sites to a central corporate network.

"Bay Networks is committed to delivering industry leading performance and increased bandwidth solutions on our high end router product line, while maintaining and protecting our customers' networking investments," said Ilan Carmi, vice president and general Manager of the Router Platform Division at Bay Networks. "Gigabit Ethernet in the Backbone Node Router combined with the IP Services platform is the solution our customers need to migrate to IP-optimized networks."

In addition to the major bandwidth upgrade for the LAN campus solution, Bay Networks is also introducing a next generation hardware compression co-processor that supports multiple algorithms, and delivers high performance and interoperability on all WAN modules. This gives customers a scalable solution that optimizes WAN bandwidth and saves on WAN operating costs.

"The next generation Power PC processor will provide the bandwidth needed to continue the proven performance leadership of the BN router in the enterprise LAN marketplace," said Sally Bament, vice president of product management for the Router Platform Division at Bay Networks. "In addition, the new products and features we're introducing represent a commitment to open and interoperable choices that lower equipment costs today and in the future." The Gigabit Ethernet Module will be standards compliant.

Software features to be released for the BN router include support for 802.1Q VLAN Tagging and Multi-Link Trunking, which will provide customers with tools for a smooth migration to higher performance, IP-optimized gigabit networks.

"We rely on Bay Networks equipment to move close to 500 medical images across our network every day. The Bay Networks equipment has worked flawlessly for us," said Mike Brunt, director of information systems, Radiology Practice Management, Inc. (RPM). "Gigabit Ethernet is a logical step for us as we seek high bandwidth solutions to support our growing teleradiology operations. We will of course continue to use Bay Networks and are delighted with the introduction of the new BN-based equipment."

Support for 802.1Q VLAN Tagging and Multi-Link Trunking

In addition to the Gigabit Ethernet Module, the BN router will also support 802.1Q for VLAN tagging in the Bay Networks Routing Services (BayRS(TM)) 12.20 software release which will provide increased performance, simplified management of user addressing, and security and access control. This completes the VLAN solution for interoperability with Accelaable to easily send traffic from multiple VLANs at traditionally have been ATM added features.

Hardware Compression

Bay Networks plans to release a central site hardware compression solution by increasing the current compression context offered to 256, which optimizes WAN bandwidth while saving on WAN service costs. An enhanced FRE2-060E processor will provide a very high level of scalability and compressed throughput, while offering a choice in compression algorithms. Customers now can compress across all WAN link modules and have a choice of compression algorithm with support for Hi/fn LZS in addition to its current MSA/WCP compression.

About the BN Router

Bay Networks' award winning, industrial strength Backbone Link Node (BLN(R)) and Backbone Concentrator Node (BCN(R)) products are multiprotocol routers designed to satisfy the high performance and availability requirements of the most demanding mission-critical backbone internetworks. The BN products feature a symmetric multiprocessor architecture that uses multiple MC68040- or MC68060-based Fast Routing Engine (FRE) processors, multiple dual Power PC microprocessor-based ATM Routing Engine (ARE) processor modules, and a 1 Gbps Parallel Packet Express (PPX) to deliver industry-leading performance and availability.

Configured with BayRS software, the BLN and BCN routers provide multiprotocol routing and bridging, to maximize connectivity and interoperability in multivendor, multiprotocol environments. Comprehensive hardware and software redundancy features provide complete fault resiliency, while dynamic reconfiguration and hot-swap features allow on-line changes in hardware and software configurations. -0-

Pricing and Availability
Gigabit Ethernet                    $13,000           Calendar Q1 1999
Next Generation Processor           $20,000           Calendar Q1 1999
Hardware Compression Co-Processor   $7,300 and 10,300        June 1998
802.1Q in BayRS 12.20      TM). Bay Networks, Inc.
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CONTACT: Bay N, Inc.