Bezeq International Evolves to Next Generation Broadband With Redback SmartEdge Service Gateway Platform; Leading Israeli Internet Service Provider Readies for Advanced Services and Multicast Video over Broadband.

SAN JOSE, Calif. -- Redback Networks Inc. (Nasdaq:RBAK), a leading provider of next-generation broadband networking systems, today announced that Israel-based Internet Service Provider (ISP) Bezeq International Ltd. is evolving its consumer and business broadband network by augmenting existing Redback SMS(TM) systems with next-generation Redback SmartEdge(R) Service Gateway systems to offer advanced per-subscriber services and multicast video over broadband.

"Redback Networks has served an important role in growth and success of our broadband business," said Ronnie Sadeh, vice president of technology, Bezeq International. "As we migrate to a next-generation broadband infrastructure, we can expand our growth while offering video and advanced IP services to businesses, such as MPLS VPNs."

"We are pleased to help Bezeq International advance its broadband infrastructure with our SmartEdge Service Gateway platform," said Magnus Almquist, vice president of sales and operations for Europe, Middle East and Africa for Redback Networks. "Bezeq International has effectively utilized our solutions for business and competitive advantage while continuing to demonstrate the vision, leadership and service that makes it a world-class ISP."

The Redback SmartEdge Service Gateway platform delivers the strength of Redback's industry-leading SMS family of subscriber management systems with the SmartEdge platform's purpose-built hardware and software to provide subscriber management with dynamic policy enforcement, carrier-class IP routing, ATM mediation, MPLS VPNs, multicast and advanced video capabilities, including multicast, and high performance Quality of Service (QoS).

The SmartEdge family is designed to provide consistent operational and management control with the SMS family to ensure a seamless migration for 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 Router and Service Gateway platforms for Consumer IP combine subscriber management systems and edge routing and, in conjunction with the NetOp(TM) 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 Networks' expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding Bezeq International's growth and success, whether its transition from SMS systems to SmartEdge systems will be a seamless migration and the ability to offer effective advance services and multicast video over broadband. 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 Networks' 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.