Beaver Creek Cooperative Telephone Company Selects Redback Networks; SmartEdge Service Gateway Platforms to Provide On-Demand Services.

SAN JOSE, Calif. -- Redback Networks Inc. (Nasdaq:RBAK), a leading provider of next-generation broadband networking systems, today announced that Beaver Creek Telephone Company has deployed the SmartEdge(R) Service Gateway and the NetOp(TM) Policy Manager to deliver on-demand broadband services. The tightly integrated solution provides bandwidth control for Beaver Creek's Ethernet and other broadband services.

"We upgraded our network from the SMS(TM) to the SmartEdge to offer our Ethernet and broadband customers a higher level of service," said Brandon Drake, vice president of technology at Beaver Creek Cooperative Telephone Company. "On demand services reduces our service response times, automates our provisioning process and reduces billing errors, which improves the overall customer experience."

The tightly integrated solution of the SmartEdge Service Gateway and the NetOp Policy Manager includes open application programming interfaces to facilitate back end integration with billing and other operational support systems. Broadband subscribers can now log in to a personalized portal to provision bandwidth on demand. The flexibility of the solution enables service providers to offer on demand services to its broadband customers regardless of the access technology.

"We are very excited to work with Beaver Creek to offer its customers personalized broadband services," said John Scherzinger, director of sales for North America at Redback Networks. "With the network upgrade, the foundation is now in place to offer personalized triple play services such as Video-on-Demand (VOD) and Internet Protocol Television (IPTV) in the future."

The SmartEdge Service Gateway allows service providers to offer tiered broadband services, which may increase revenue with value added services. Existing SMS remote broadband access server customers can migrate to the SmartEdge Service Gateway without disrupting services to the end customers.

About Redback Networks

Redback Networks Inc., a leading provider of next-generation broadband networking equipment, enables carriers and service providers to build third-generation Smart Broadband Networks that can deliver simplified, personalized, portable subscriber services to consumers and businesses. The company's carrier-class, consumer-scale SmartEdge Service Gateway platform for Consumer IP combine subscriber management systems and edge routing and, in conjunction with the NetOp Element and Policy Manager platform, provide a powerful, flexible infrastructure for managing both subscribers and value-added services.

Founded in 1996 and headquartered in San Jose, Calif., with sales and technical support centers located worldwide, Redback Networks maintains a growing and global customer base of more than 500 carriers and service providers, including major local exchange carriers (LECs), inter-exchange carriers (IXCs), PTTs and service providers. 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. SMS and NetOp are trademarks 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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, including statements regarding Redback Network's expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding Beaver Creek's ability to provide a higher level of service and improve the overall customer experience and increase revenue. All forward-looking statements included in this document are based upon information available to Redback Networks as of the date hereof, and Redback Networks assumes 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 Redback Network's 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, Form 10-Q, Form 8-K, Redback's Registration Statement on Form S-3 (File No. 333-114352), and amendments thereto, and the other reports filed from time to time with the SEC.