AT&T SIGNS RESELLER AGREEMENT WITH BAY NETWORKS, EXTENDS COMPREHENSIVE
SERVICE TO DATA NETWORKING PRODUCTS

June 14, 1995 -- AT&T and Bay Networks, Inc. today announced that they have
signed an agreement for AT&T Global Business Communications Systems (GBCS)
to sell, service, and support Bay Networks internetworking equipment.

The agreement responds to growing demands from AT&T business customers for
a single source of voice and data networking equipment, service and
support, and expertise to help them evolve to integrated voice and data
networks, AT&T said.

AT&T will begin a regional rollout of Bay Networks network hubs, switches
and routers immediately, with full national coverage expected by the end
of 1995.

In addition, customers will be able to choose from a variety of service
plans for maintenance on products purchased from AT&T GBCS, from basic
helpline support to comprehensive on-site service. AT&T on-site dispatch
options will range from standard business day response within twenty-four
hours to premium response within four hours. Help-desk coverage will range
from 8 A.M. to 5 P.M. on Monday through Friday to twenty-four-hour,
seven-days-a-week coverage, depending on the service plans customers
select.

"Many large and small organizations that are installing, or plan to
install, data networks have already worked with AT&T to install and
service a voice network," said Carl Pavarini, AT&T GBCS vice president of
emerging markets. "They have seen how dependable the combination of AT&T
products, service and support are, and have come to rely upon us."

"Our customers need comprehensive, integrated voice and data solutions,
delivered by a partner like AT&T that can provide the full range of
installation, management and support services for enterprise
communications systems," continued Pavarini.

According to Gary Bowen, executive vice president of sales, marketing and
customer service at Bay Networks, the partnership with AT&T represents a
significant new distribution channel for Bay Networks. "AT&T GBCS's choice
of Bay Networks as a preferred partner for internetworking products is a
major endorsement of our commitment to leading the industry with the best
technologies, as well as the best overall customer solutions," Bowen said.
"AT&T has a blue-chip list of customers who stand to benefit enormously
from the combination of Bay Networks world-class internetworking products
and AT&T's integrated service and support capability."

AT&T GBCS already provides unparalleled voice networking switching
capabilities with its DEFINITY Communications System. In addition, it
provides customers with a variety of integrated voice and data solutions,
such as desktop videoconferencing and data collaboration systems,
multimedia messaging systems and computer-telephone integration solutions.
As a result, AT&T will be able to draw upon its expertise in installing,
supporting and servicing these systems to provide a full range of service
for the Bay Networks data networking equipment.

Bay Networks, Inc. (Nasdaq: BNET) is a leading worldwide supplier of a full
range of highly available, multiprotocol routers, intelligent hubs,
high-speed switches, and sophisticated network management products for
organizations building enterprise-wide information internetworks. The
company was established in October 1994 with the merger of SynOptics
Communications and Wellfleet Communications, and now has combined revenues
in excess of $1 billion for its most recent year. With more than 1,000
resellers and over 1,200 direct sales and service personnel worldwide, Bay
Networks markets and supports its comprehensive product suite in 110
offices, providing 7x24 global support coverage.

AT&T, the global communications and computing company, is the world's
networking leader, providing communications services and products, as well
as network equipment and computer systems, to businesses, consumers,
telecommunications services providers and government agencies.

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