Bay Networks integrates Frame Relay switching with IP routing for scalable Virtual Private Networks (VPNs); BayStream allows service providers to cost-effectively offer value-added networks to enterprise customers.

BILLERICA, Mass.--(BUSINESS WIRE)--Sept. 3, 1996--Bay Networks, Inc. (NYSE: BAY), today announced BayStream, the new multiservice software offering from the company's Internet/Telecom Business Unit (ITBU) that delivers WAN functionality using Bay Networks' IPVirtualCircuitTM (IPVC) technology.

IPVC integrates Frame Relay switching, Frame Relay interworking and IP routing in a single platform to provide unlimited scalability and simplified ongoing management while leveraging emerging IP-based technologies, such as RSVP and QoS. Service providers can now experience significant cost savings by supporting a greater number of WAN connections without disrupting the existing point of presence (POP) equipment infrastructure to accommodate their customers' need for VPN services. VPNs function like private enterprise networks but utilize the Internet or commercial network infrastructure to provide greater bandwidth and reliability more cost effectively.

"Because IP is the foundation for emerging Intranet applications, we believe all Frame Relay switches will need tight integration with IP in the future. BayStream's IPVC technology provides this tight integration and simultaneously allows ISPs and carriers to dramatically reduce the cost of the VPNs required to support these Intranets," said Brian Walck, director of product management, multiservice infrastructure, ITBU, Bay Networks. "The market opportunity for ISPs and telecommunications providers to offer VPN services is here today and is expected to grow significantly in the next few years."

With BayStream's integrated switching and IP routing capabilities, service providers have a cost-effective, streamlined solution for handling their traditional Internet traffic and VPN Frame Relay traffic. The BayStream software runs on Bay Networks' wide range of hardware platforms and provides service providers with consolidated switching and routing capabilities across their networks. Service providers can now deliver seamless support for both IP and Frame Relay traffic from the network edge to the Internet or Frame Relay backbone. Service providers' WAN capabilities are streamlined with an integrated BayStream end-to-end VPN solution.

"As one of the largest Frame Relay service providers in the world, MCI leverages Bay Networks' switching technology to help give our network the highest throughput and lowest latency rates in the industry," said Steve Tabaska, MCI's executive director of Data Services engineering. "As MCI deploys the company's new product, BayStream, in our network, we look forward to providing our customers even higher performance."

"Bay Networks and Fujitsu have worked together for some time to develop integrated data communications solutions for public network carriers," said Greg Wortman, director of marketing at Fujitsu Network Communications, Inc., the leading provider of SONET transport equipment in North America. "We are now incorporating BayStream in order to enhance our line of access and transport solutions. With BayStream and its IPVC technology, integrated Internet and Frame Relay traffic can be routed along the broadband SONET backbone to deliver a new level of scalability and flexibility for our customers."

BayStream Multiservice Capabilities

The BayStream multiservice software platform provides service providers with an integrated, streamlined solution for offering VPN services to enterprise customers. BayStream provides users with the following features and benefits:

Unlimited scalability -- Unlike the competition, BayStream's IPVCs use industry standard IP as a trunking protocol. Leveraging technology that has been used to build the world's largest network, the Internet, service providers can now support an unlimited number of Permanent Virtual Circuits (PVCs). Industrial-strength protocols like OSPF provide lightening fast routing around network failure points to ensure an unsurpassed level of uptime for enterprise customers.

Simplified networking -- BayStream simultaneously supports both Frame Relay switching and IP routing, enabling service providers to handle enterprise network and Internet access traffic in a single, consolidated solution. This results in a simplified network with less equipment to buy, maintain, manage and upgrade.

High-speed backbone options -- BayStream offers Frame Relay-to-ATM trunking network interworking, allowing service providers to consolidate Frame Relay traffic from a large numbers of users and send it over a high-speed ATM backbone, reducing costs and improving performance.

Seamless ATM integration -- BayStream provides Frame Relay-to-ATM service interworking capabilities, enabling service providers to offer customers seamless integration between their corporate Frame Relay and ATM service offerings. This allows service providers to create VPNs for customers using both Frame Relay and ATM.

Communications-on-demand -- BayStream offers support for Frame Relay secure Switched Virtual Circuits (SVCs), enabling service providers to offer on-demand secure virtual private networks using standard Frame Relay. VPN security is enhanced with two-level, closed-user groups (CUG) and community-of-interest (COI) filtering to prevent unauthorized access to the VPN.

Low-cost connectivity and redundancy options -- BayStream supports ISDN switched access to Frame Relay and the Internet, enabling service providers to offer customers the option of connecting to their networks over low-cost ISDN connections. As a result, service providers can enhance their VPN services with dial-on-demand, dial back-up and disaster recovery capabilities.

New Business Markets -- BayStream offers SDLC-to-Frame Relay services, enabling service providers to accept data from large IBM networks and route them across virtual private networks. Service providers can now sell services to "Big Blue" customers and eliminate the need to purchase costly leased lines.

BayStream's multi-platform support means that service providers can leverage the full line of Bay Networks' high performance hardware for both IP and Frame Relay traffic. BayStream runs across the following hardware platforms, providing users with access to the most cost-effective, scalable technology in the industry:

MSX Multiservice POP Switch -- provides remote access, routing, switching and shared media capabilities in a single high-performance "POP-in-a-box," enabling service providers to consolidate hardware while preserving their initial investment.

Access Stack Node -- provides a stackable, pay-as-you-go router architecture for small service providers, ISPs and carriers who wish to deploy smaller, less expensive POPs in emerging markets.

Backbone Link Node/Backbone Concentrator Node -- provides high-performance backbone architecture required at the edge of the backbone. The BCN is the industry benchmark for performance at over 1 million packets per second (pps) and port density with over 52 T1/PRI connections and 1,200 DSO ports in a single chassis.

Pricing and Availability

BayStream is available immediately and ranges in price from $2,500 - $10,000. It runs on the following platforms: ASNTM, 5380 module for the System 5000 MSX, BN router family including the BLN and BCN.

About Bay Networks

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 market-leading LAN and ATM switches, hubs, routers, remote and Internet access solutions, and network management applications, all unified by the BaySIS architecture. With revenue of $2.1 billion over the past four fiscal quarters, 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, BayStream, BayIPVirtualCircuits, MSX Multiservice POP Switch, Access Stack Node, Backbone Link Node, Backbone Concentrator Node, System 5000 and BaySIS are trademarks of Bay Networks, Inc. BN, BLN and BCN are registered trademarks of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

CONTACT: Karin Bakis

Bay Networks, Inc.

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Emily Fisher

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