BAY NETWORKS ENHANCES GLOBAL CHANNEL STRATEGY WITH NEW RESELLER PARTNER
ALLIANCE PROGRAM

 -- Substantial Investments in Staff and Programs Provide Channel Partners
Worldwide with Greatly Expanded Marketing, Sales, and Technical Support
--

BILLERICA, Mass., July 10, 1995 -- Strengthening the company's commitment
to the channel, Bay Networks, Inc. today unveiled the Bay Networks Partner
Alliance Program, a new program designed to increase channel sales
worldwide.

The program provides comprehensive marketing, training, sales, and
technical support resources to Bay Networks resellers. Stressing an
innovative approach, the company is expanding its existing range of
channel resources by investing in additional resources to provide
resellers with qualified sales support services, marketing and
merchandising support, training and technical certification.

On a related note, Bay Networks also announced the appointment of A.L.
(Skip) Wangbickler as Vice President of Channel Operations, succeeding
Jeff McCarthy who was named to the newly created position of Vice
President of Carrier and Integrator Operations. In addition, the company
appointed Frank Tolve as Vice President of Customer Development. (See
today's related release: Bay Networks Strengthens Channel Operations Team
With Senior Management Appointments).

The Bay Networks Partner Alliance Program combines the best characteristics
of the company's existing channel efforts with new channel investments,
empowering value-added resellers (VARs) to address the evolving needs of
customers designing, implementing, and managing global network
environments.

Key areas of channel investment include:

* Qualified lead generation - through a sixfold increase in the number of
telesales representatives dedicated to generating qualified sales leads;

* Mid-tier level sales support - through more than doubling the number of
dedicated field employees serving the channel;

* Training - through the introduction of an innovative technical
certification program, the addition of channel training managers, and
subsidized product training.

"An increasing number of organizations are depending on VARs to help them
evaluate, procure, build and maintain a wide range of internetworking
solutions," said Gary Bowen, Bay Networks executive vice president, field
operations and marketing. "Bay Networks understands how critical resellers
are - both to our customers and to Bay - and we have designed a
comprehensive program to ensure that we are the best partner in the
internetworking marketplace."

Bay Networks expects to generate approximately 85 to 90 percent of its
worldwide product revenues through channel partners during fiscal year
1996, beginning July 1, 1995.

"By providing additional incentives to resellers that have invested in
understanding Bay Networks products, technology and architecture, the new
Partner Alliance Program allows resellers to better differentiate
themselves in the marketplace," stated Sergio Gemo, vice president of
marketing at Anixter Corporation, Inc. "Anixter has already invested
heavily in technical training for Bay Networks products and is delighted
that this new program will recognize those investments, thereby enabling
us to quickly obtain certification as an Enterprise Solutions Partner."

Partner Designations

The new program features two partner designations, Bay Networks Authorized
Partners and Bay Networks Enterprise Solutions Partners, each with a rich
set of benefits that VARs can earn. Authorized Partners have expertise in
selling and supporting connectivity and/or routing solutions for
small-to-mid-sized environments. These partners resell the majority of Bay
Networks products except for the most advanced offerings, such as ATM
products and enterprise backbone products.

Enterprise Solutions Partners possess extensive network, systems, or
application integration knowledge, and have expertise in selling and
supporting enterprise-level networking solutions to large- and mid-sized
customers that include hubs, routers, switching products and network
management. These partners have access to Bay Networks most advanced
products, including ATM products and high-end routers.

Partner Benefits

Through the Partner Alliance Program, Bay Networks will make a substantial
investment in its reseller partners. Unlike other channel programs, Bay
Networks reseller program provides co-op funds and subsidized telephone
support to all Authorized and Enterprise Solutions Partners, whether they
buy from Bay Networks or from one of Bay's distribution partners.
Additionally, Bay Networks will subsidize product training for all
reseller partners, providing up to 10 free courses to each qualified sales
location, per year.

Reseller partners also will have access to a broad range of Bay Networks
technical and sales support information, including a comprehensive suite
of marketing communications tools as well as access to technical and sales
support applications via the Internet and the World Wide Web. (Bay
Networks World Wide Web address is: http://www.baynetworks.com).

Certification Process

Technical requirements for partners are defined by the Bay Networks
Certification Program, a new initiative that provides engineers with the
opportunity to earn up to 7 designations by demonstrating their knowledge
and expertise in different Bay Networks product lines and technologies.

To earn each of the 7 designations, an engineer must pass a computer-based
and/or practical examination, which tests skills obtained through a
combination of course work and on-the-job experience. A unique feature of
this program is the ability for engineers to earn designations without
being required to complete courses.

Availability

The Bay Networks Partner Alliance Program is available today for reseller
partners in North America and Europe, with certification testing beginning
in September 1995. The program will be available for reseller partners in
Latin America and Asia Pacific in September 1995.

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.
 
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