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Bay Networks Extends Enterprise ATM Solutions With PNNI, Voice Integration and New Network Center Switch.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 17, 1998--

New Products and Technology Further Enable Large, Scaleable,

End-to-End Enterprise ATM Networks

Leveraging its ATM LAN leadership and executing its strategy of providing customers best-in-class, end-to-end enterprise ATM solutions, Bay Networks(R), Inc. (NYSE:BAY) today announced full support for PNNI (Private Network to Network Interface) and voice integration for its Centillion(TM) LAN-ATM switch products.

PNNI dramatically extends ATM's inherent resiliency, scalability, and fault tolerance in mission-critical networks. Bay Networks is also announcing the Centillion 1000 product family, including a new network center ATM switch with high-density OC-3 and OC-12 interfaces, and several new high-capacity ATM products.

The Bay Networks Centillion LAN-ATM product family has allowed large numbers of customers to integrate frame-based desktops, servers and wiring closets into high-performance cell-based enterprise backbones. Bay Networks' leadership in building industrial-strength ATM networks is strengthened through the addition of high-performance, standards-compliant PNNI and fully-redundant ATM core switching. These new capabilities provide the increased availability essential to the integration of voice and ATM in today's business-critical networks.

"In order to provide an end-to-end solution, it is important for us to control ATM technology in the core of the network. The introduction of the Centillion 1000 product family is a logical next step in that direction," said Joe Kennedy, general manager and vice president for the Switching Products Division, Bay Networks.

"The unique, fully-redundant switch fabric of the new ATM switch, and introduction of PNNI across our product line, provides our customers with voice integration at levels of service they've come to expect from our ATM solutions," continued Kennedy.

Today's announcement leverages Bay Networks' Adaptive Networking strategy of providing best-in-class application support irrespective of the networking technologies its customers choose to implement. As networked services and applications become more strategic to its customers, Bay Networks is providing the platforms to support them, now and into the future.

About the Centillion 1000 Product Family

The Centillion 1000 ATM switch family, developed by NEC Corporation, provides Bay Networks with voice transport and PBX interconnection and expanded network center switching for its customers' ATM LAN and WAN applications. NEC is highly recognized for its enterprise voice systems engineering and technology, growing application areas for ATM, and was selected by Bay Networks for its best-in-class, business-critical technology.

The new product family includes three new modular chassis with 16 (Centillion 1600), eight (Centillion 1400) and four (Centillion 1200) slots, respectively. The Centillion 1600 switch has a unique, fully redundant, non-blocking, 10 Gbps switch fabric supporting high density OC-3 (up to 64 ports) and OC-12 (up to 16 ports). The Centillion 1400 and Centillion 1200 switches come with 5 Gbps and 2.5 Gbps non-blocking switch fabrics, respectively.

The Centillion 1000 products support the following interfaces: 622 Mbps (OC-12) single mode, OC-12 multi-mode, 155 Mbps (OC-3) single mode, OC-3 multi-mode, OC-3 UTP, DS3/E3 and DS1/E1 (with or without circuit emulation).

The Centillion 1000 switches also support high-performance, interoperable PNNI dynamic switch interconnections with the entire Centillion LAN-ATM product line. PNNI further enhances the reliability of large ATM networks and its auto-discovery capability makes them easier to configure and manage than networks using the Interim Inter-switch Signaling Protocol (IISP).

Also new to the Centillion 1000 product family is the ATM voice concentrator, which provides an efficient means for converting T1/E1 voice or video circuits to ATM cells for transport with data and video traffic across corporate intranets. The ATM voice concentrator provides rich integration for either enterprise LAN or WAN voice connectivity with T1/E1 circuit emulation. The integration of voice and data over the LAN and WAN drives management and recurring infrastructure costs down through consolidation of services.

"Bay Networks recognizes the significant trend in large enterprises leveraging ATM carrier services as well as building private ATM WAN backbones," said Lloyd Carney, executive vice president, Enterprise Business Group, Bay Networks. "The Centillion 1000 product family enables Bay Networks to participate in this new emerging ATM space and fills out our existing ATM LAN and WAN solutions."

The entire Centillion switching family, including the new Centillion 1000 products, are supported by Bay Networks' industry-leading Optivity(R) Network Management applications.

About PNNI

Bay Networks has successfully participated in several multi-vendor interoperability demonstrations and testing, including testing conducted at the University of New Hampshire's ATM Interoperability Lab; testing through the Network Interoperability Alliance monitored by the Tolly Group; and a full production demonstration at last year's Networld+Interop show in Atlanta.

The ATM Forum PNNI standard is a link-state, hierarchical dynamic routing protocol for ATM, which alleviates the need for network managers to use static routes or proprietary routing protocols; enhancing the manageability of ATM infrastructures. In dynamically resolving data paths for call requests that include Quality of Service parameters, PNNI also further adapts ATM to the integrated delivery of data, video, and voice services.

Pricing and Availability

The Centillion 1000 ATM switches are expected to begin shipping in volume in March 1998 with list pricing starting at $15,900. The ATM voice concentrator is expected to begin shipping in April 1998 and will be list priced at $7,995. PNNI for the Centillion product line is expected to begin shipping in March 1998.

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, 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.

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. -0-

Note to Editors: Bay Networks and Optivity are registered trademarks and Centillion and Where Information Flows are trademarks of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

CONTACT: Bay Networks, Inc.

Erin Curtis, 408/495-3619 (Public Relations)

ecurtis@baynetworks.com

Sandra Toms, 408/495-1181 (Investor Relations)

stoms@baynetworks.com
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