Bezeq Builds Next Generation Network Using Redback Networks SmartEdge Multi-Service Edge Router.

SAN JOSE, Calif. -- Redback Networks Inc. (NASDAQ:RBAK), a leading provider of next-generation IP networking systems, today announced that Bezeq, the national incumbent telecommunications provider of Israel, has selected Redback's SmartEdge(R) Multi-Service Edge Router as the foundation for its next generation broadband IP network. Together with its Israeli partner Taldor Communications, Redback will provide Bezeq service and support to meet their broadband infrastructure requirements.

According to Point-Topic, Israel had 800,000 residential customers using high-speed ADSL (Asymmetric Digital Subscriber Loop) to access the Internet at the end of 2005. Point-Topic also reports that ADSL technology accounts for over 65% of the broadband access market in Israel, which is growing at almost 30% per year. Bezeq chose the SmartEdge router to help it address this growing market along multiple dimensions such as increased bandwidth, service variety and multiple access devices.

"Strong broadband adoption in the Israeli market combined with an upcoming demand for next generation IP services such as VoIP (Voice over Internet Protocol) and IPTV (Internet Protocol Television) has created the need for increased capacity, scalable multicast and quality of service within the broadband network infrastructure," said Eve Griliches, research manager at IDC. "Knowing the thoroughness of Bezeq's selection and testing process, the selection of Redback's SmartEdge system demonstrates it is one of the major contenders in the Multi-Service Edge Router market, integrating carrier class edge routing with scalable Ethernet aggregation and strong subscriber management functions."

"We are pleased to extend our relationship with our long-standing customer Bezeq together with our loyal partner Taldor Communications," said Magnus Almquist, vice president of operations for Redback in Europe, Middle East and Africa. "Redback's SmartEdge and NetOp family of products will enable Bezeq to deliver the full range of IP based services on a personalized basis to residential and business customers on an integrated platform."

About Bezeq

Bezeq is Israel's national telecommunications provider. Established in 1984, the company has led Israel into the new era of communications, based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of telecommunication services including domestic, international and cellular phone services; Internet, ADSL, and other data communications; leased lines, and corporate networks.

Bezeq aims to maintain its position as the #1 communications group in Israel, leading in both infrastructure and services, providing managed solutions to business customers, broadband and interactive services to consumers, as well as next generation mobile and wholesale network services. The company has adopted a strategy of growth and defense in an era of new technologies, emerging business possibilities, and intensified competition in the wake of government liberalization and deregulation. The strategy also includes strengthening group awareness so that Bezeq is seen as a one-stop-shop for domestic, cellular, international, satellite and Internet solutions.

About Redback Networks

Redback Networks Inc., a leading provider of next-generation broadband networking systems, enables carriers and service providers to build Smart Broadband Networks that are personalized, adaptive and efficient. The Smart Broadband Network provides advanced IP based subscriber services to consumers, businesses and wholesale customers. The company's carrier-class, scalable SmartEdge product family integrates carrier class edge routing, advanced subscriber management and high density Ethernet aggregation functions. In conjunction with the NetOp(TM) Element and Policy Manager platforms the SmartEdge family provides a powerful and flexible infrastructure solution that enables delivery of next-generation Broadband IP 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, service providers and ISPs. 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.

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 Networks' expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding the continued growth of broadband services in Israel and whether Redback, with its partner Taldor Communications, will provide Bezeq service and support for personalized IP services on an integrated platform, and whether Bezeq and its customers will gain the anticipated benefits from the use of the SmartEdge product line. All forward-looking statements included in this document are based upon information available to Redback Networks and its partners 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.