Santa Clara, CA, May 4, 2004 - Bay Microsystems, a leader in high performance network processing solutions, today announced the hiring of its first chief financial officer, Michael McDonald, formerly with ISSI, and the addition of a new member to its board of directors. Celeste Volz Ford, founder and CEO of Stellar Solutions, a professional aerospace engineering services firm, has joined Bay's board.

Both appointments are in response to the Company's successful expansion of its business with both the U.S. Government and with commercial equipment suppliers. Bay released Montego®, the first of its Internetworking Processor™ (InP) family of devices, in April 2002 and has been shipping full-line rate 10Gbps systems and subsystems for more than a year.

"We are pleased to announce Mike as our CFO, as he fills a huge role in our executive team with his extensive corporate-level financial management experience," said Chuck Gershman, president and CEO of Bay Microsystems. "Celeste brings another valuable dimension to our board of directors, with her knowledge and leadership in the aerospace industry."

McDonald has more than 25 years of public and private company financial management experience in the semiconductor and RF/microwave electronics industries. He was recently vice president of finance, CFO and secretary of Integrated Silicon Solutions, Inc., a publicly-traded, fabless designer and developer of high performance memory semiconductors. McDonald was also CFO with REMEC, Inc., a publicly-owned designer and manufacturer of RF/microwave frequency subsystems.

Ford is a recognized leader in the aerospace field. The company she founded and runs today, Stellar Solutions, is a leading company in aerospace with its participation in critically important government and commercial, national and international space satellite programs. In addition to Bay Microsystems, Ford currently serves on the board of directors of the California Space Authority and the Women's High Tech Coalition.

Bay Microsystems is a privately held, communications technology company delivering the building blocks of programmable network processors, software and subsystems for high performance intelligent networks. Bay's Internetworking Processor™ (InP) Family is scalable, intelligent, and ultra-high performance, suited for the full range of carrier class products from "Access to Long-Haul." The InP Family includes the industry's first OC192c/10G processor capable of classification, policing, segmentation and reassembly, and traffic management at wire rate.

Bay's InP products are in use within broadband networks developed by the US Government and commercial providers serving the metro-edge, metro-core, regional and long-haul markets. Bay's seasoned management and world-class engineering teams have three generations of proven expertise in architecture, implementation, deployment, marketing and management of network processing solutions. For more information visit www.baymicrosystems.com.

Montego and Bay Microsystems are registered trademarks in the U.S. Patent and Trademark Office. Internetworking Processor is a trademark of Bay Microsystems. All other trademarks are the property of their respective holders.