RBAK Redback Networks

Redback Networks Inc. (NASDAQ:RBAK), a leading provider of next-generation broadband networking systems, today announced several milestones in broadband service deployments with incumbent carriers in China, including carrier wins in 22 of 32 provinces in China. Redback's SmartEdge(R) family of multi-service edge routers have now been deployed in 22 of China's 32 provinces, serving millions of business and residential broadband customers. There are about 30 million DSL users in China, about 20 percent of the estimated 150+ million DSL users worldwide, according to Point-Topic, a U.K.-based telecommunications research firm. China is Redback's second largest market and third largest customer, if you combine China's public-owned telephone carriers into one group. Over the last 12 months, Redback has 22 carrier wins in China, focused on the independently operated, provincial subsidiaries of China Telecom and China Netcom, the two largest incumbent carriers in China. For China Telecom, this includes provincial carriers in Guangdong, Zhejiang, Fujian, Anhui, Hubei, Jiangxi, Yunnan, Shaanxi, Ningxia, Heilongjiang and Tibet. For China Netcom, this includes similar deployments in Shandong, Liaoning, Hebei, Heilongjiang, Jilin, Henan, Shanxi, Inner Mongolia, Zhejiang, Chongqing and Yunnan. With these carriers in China, Redback is at the center of one of the largest IPTV deployments in the world. In China, five carriers are either using or plan to use in the future Redback's multi-service edge router to help deliver IPTV service in Guangdong, Jiangsu, Zhejiang, Shaanxi and Heilongjiang provinces. Because China has little cable TV infrastructure, these five telephone carriers hope to sign up to 500,000 IPTV users as a competitive alternative to satellite and broadcast TV services. "Our research shows compound annual growth rates of greater than 50% for many new business and residential broadband services in China," said Mark Bieberich, research director at Yankee Group., a major research firm in Boston, MA. "Redback's success in the China market demonstrates its ability to meet this demand with a proven multi-service edge router." "China is a leader in broadband service delivery, delivering high-speed Internet, telephone and TV services over a single IP-infrastructure," said Simon Williams, vice president of sales and operations in Asia Pacific, Redback Networks. "Redback supports China's vision that next-generation broadband services will help to foster economic growth in the future." "On a world-wide basis, we believe that the next wave of broadband service upgrades may be larger than the last Internet build-out. Video changes everything," said Kevin DeNuccio, president & CEO, Redback Networks. "There are more than 250 million broadband users today and there is an opportunity to upgrade up to 2 billion existing wireless and wire-line users worldwide. Over time, we believe that carriers will support fewer networks for data, voice and video services and migrate most users to a single, IP-based broadband infrastructure." Eleven of the top 20 DSL carriers worldwide deploy Redback's SmartEdge(R) multi-service edge routers to deliver various broadband services to tens of millions of business and residential customers worldwide. These customers include British Telecom, Belgacom, BellSouth, China Telecom, China Netcom, Chunghwa Telecom, France Telecom and Turk Telecom, among others. About Redback Networks Redback Networks Inc. manages 40 million broadband connections for 15 of the top 20 carriers worldwide. Redback's multi-service routing platform delivers next generation broadband services such as VoIP, IPTV, On-Demand Video and on-line gaming. Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA. In 2006, Redback marks its 10 year anniversary, celebrating ten years of broadband innovation. For more information, visit Redback Networks at www.redback.com REDBACK and SmartEdge are trademarks registered at the U.S. Patent and Trademark Office and in other countries. NetOp is a trademark of Redback Networks Inc. All other products or services mentioned are the trademark, service marks, registered trademarks or registered service marks of their respective owners. Note Regarding Forward Looking Statements The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. These statements include but are not limited to statements regarding our expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding the deployment of broadband services and IPTV services in China by carriers; the belief that next-generation broadband services will help to foster economic growth, that the next wave of broadband service upgrades will be larger than the last Internet build-out, and that carriers will support fewer networks and migrate wireless and wire-line users to a single broadband infrastructure; and the ability of Redback's products to help carriers deliver such services. All forward-looking statements included in this document are based upon information available to us as of the date hereof, and we assume no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These risks and other risks relating to our business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission (SEC), specifically the most recent report on Form 10-K for the fiscal year ended December 31, 2005, Form 10-Q for the quarter ended June 30, 2006, Forms 8-K, and amendments thereto, and the other reports filed from time to time with the SEC.