Bay Networks and SIAC to Build Next Generation Network for the New York Stock Exchange.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 16, 1998--Bay Networks(R), Inc. (NYSE:BAY) today announced that the Securities Industry Automation Corporation (SIAC) has chosen Bay Networks as a key partner to provide network equipment for a next generation New York Stock Exchange (NYSE) network. SIAC, the communications and transaction processing arm of the New York and American Stock Exchanges, selected Bay Networks after a rigorous three-month evaluation.

Because of the NYSE's expected increases in volume and transaction types, as well as the use of multimedia IP applications such as voice and video, the Bay Networks Accelar(tm) Routing Switch product family was chosen as the underlying architecture for the vision of how it can and will be used to build a high performance, multiservice Layer 3 network.

"Reliability, scalability and performance are the three key attributes that SIAC has consistently emphasized in the networks that we have built, and these remain priorities," said Charles B. McQuade, president and CEO of SIAC. "We have been and remain delighted with Bay Networks' ability to execute to the demanding requirements of the NYSE's networking and processing environment."

For the past seven years, Bay Networks has provided SIAC with underlying IP-based network components capable of superior reliability, scalability and performance. The measured availability, reliability, and effectiveness has proven to be without equal in networks of this type. Bill Hawe, vice president of architecture at Bay Networks said, "SIAC and Bay Networks have always aggressively used new technology to provide innovative solutions to support the business of the NYSE."

For example, SIAC runs the consolidated market data feeds for the world's financial community (the National Market System) and has, with Bay Networks' products, effectively used IP multicast technology to reshape how the market data feeds are generated and distributed to market data vendors and National Market System participants. Hawe added, "Bay's industrial strength networking products are a direct result of the shared learning Bay and SIAC have achieved in building the NYSE network."

Looking forward, the companies will together extend the new stock exchange transaction trading network to support future IP applications such as: digital voice capture and/or recognition of trade and quote information; real-time interactive multimedia; broadcasting/multicasting of video to strategic trading floor locations; point-to-point and multi-point videoconferencing.

About SIAC

Securities Industry Automation Corporation, better known throughout the industry as SIAC, is a central resource that provides key systems support to the New York and American Stock Exchanges, the National Securities Clearing Corporation and its affiliates, and the National Market System.

SIAC was formed in 1972 as a joint subsidiary of the New York and American Stock Exchanges. Its purpose is to provide the highest quality, reliable, and cost-effective systems to support the current and future business needs of the NYSE, AMEX, NSCC and their subsidiaries. SIAC plans, develops, implements and manages a variety of automated information handling and communications systems that support order processing, trading, market data reporting, trade comparison, clearance, and settlement for a broad range of securities.

About Bay Networks

Bay Networks - Where Information Flows(tm). 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.

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

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.

    CONTACT: Bay Networks
              Matt Burke
              978-916-1320
              [e-mail]
               or
              SIAC
              Phyllis Rieger
              212-383-3733
              [e-mail]