Bay Networks Asserts Its Continued Industry Leadership Pricing for 10+100 Ethernet Workgroup Switches and 10BASE-T Stackable Hubs

Business Wire, Oct 2, 1997

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 2, 1997--

Cuts Pricing on Workgroup Ethernet Switches and Expands

"Switch to Bay" Rebate Program

In an aggressive move to maintain its price/performance leadership in the workgroup Ethernet marketplace, Bay Networks Inc. (NYSE:BAY) today announced price reductions up to 20 percent for its BayStack 303 and BayStack 304 Ethernet switches.

The BayStack 303 24 1 switch, originally list priced at $2,350, is now priced at $1,895 or $76 per port. The BayStack 304 12 1 switch, originally list priced at $1,625, is now priced at $1,395 or $107 per port.

"Bay's management team has put up their dukes and they are ready to fight," said Tam Dell'Oro, president and founder of the Dell'Oro Group. "Bay has demonstrated price leadership in the workgroup Ethernet space, which has contributed to the company's turnaround, and they are going to do what it takes to continue their momentum."

"We are committed to price/performance leadership across the board for workgroup Ethernet switching and continue to provide our customers with the most competitively priced, scalable solutions in the industry," said Grace Carr, vice president, marketing, Bay Networks. "Today's price action reinforces our Adaptive Networking strategy of providing networks that are the most cost-effective, easy-to-use, and worry-free for network managers."

Bay Networks' entire BayStack product family -- including switches, hubs and routers -- offers scalable performance and an easy migration to Fast Ethernet and/or switched Ethernet. The BayStack 150 Series 10BASE-T hubs offer customers highly-competitive, entry-level pricing as low as $43/port including management, with features usually found with more expensive solutions.

The company also maintains leadership in the 10/100 Mbps autosense switching market with the award-winning, BayStack 350 Autosense switch family -- which includes the new high-density BayStack 350F-HD Autosense switch announced in early September -- with prices as low as $249 per port.

"Switch to Bay" Rebate Program

With this announcement, Bay Networks is also enhancing its "Switch to Bay" competitive trade-in program to include the BayStack 303 and 304 switches, in addition to the BayStack 350 Autosense switch family. "Switch to Bay" offers customers a $25 rebate per BayStack switch port to keep their existing shared media workgroup hubs when they purchase an equal or greater number of BayStack 303, 304 or 350 switch ports.

The program also maintains its $50 per BayStack switch port rebate offer for customers to trade-in their Cisco Catalyst 5000 switches when they purchase an equal or greater number of BayStack 350 switch ports. In addition, the company is extending this program to BayStack switches purchased between Oct. 1, 1997 and March 31, 1998. Details on the "Switch to Bay" program are available on the Bay Networks Web site at www.baynetworks.com/switchtobay .

Pricing and Availability

The following BayStack products are shipping in volume and available now:

-- BayStack 303 24 1 Switch, list priced at $1,895;

-- BayStack 304 12 1 Switch list priced at $1,395;

-- BayStack MTX-1 100BASE-TX Switch MDA list priced at $345;

-- BayStack MFX-1 100BASE-FX Switch MDA list priced at $745;

-- BayStack 150 Hub/NMM with 24 RJ-45 ports list priced at $1,249;

-- BayStack 151 Hub with 24 RJ-45 ports list priced at $999;

-- BayStack 152 Hub/NMM with 12 RJ-45 ports list priced at $749;

-- BayStack 153 Hub with 12 RJ-45 ports list priced at $649;

About Bay Networks

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, Calif., 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. -0-

Note to Editors: 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.

Bay Networks is a registered trademark and BayStack is a trademark of Bay Networks Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.