Comstar Telecommunications Selects Riverstone for Russia's First Deployment of Ethernet-Based Services.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 11, 2003

Riverstone Networks, Inc. (Nasdaq:RSTN) today announced that Comstar Telecommunications has deployed Riverstone's RS family of routers to deliver Russia's first Ethernet-based Layer 2 virtual private network (VPN) services. Comstar selected Riverstone's RS 8600, RS 8000 and RS 3000 routers to extend Ethernet services to businesses throughout the greater Moscow area.

Traditionally focused on delivering voice services to Moscow, Comstar is leveraging Riverstone's metro networking solutions to build out a next-generation network and deliver data services to a rapidly growing business market. With Riverstone's advanced technology, Comstar is offering virtual private line services and LAN-to-LAN services across geographically diverse regions.

"The typical Russian telecommunications network is based on legacy voice technology and cannot scale as customer demand for data services increases," said David Lee, Deputy General Director of Comstar Telecommunications. "Using Riverstone's advanced routing technology, we are the first carrier in the Russian market to build a new data network with the flexibility and scalability to deliver VPN services to Russia's businesses both today and as the market continues to grow."

To rapidly deploy Moscow's first Ethernet-based services, Comstar is using Riverstone's RapidOS element management system (EMS), which provides fault detection, configuration, accounting and security features to support the management of all Riverstone RS routers and associated services. This full suite of configuration and monitoring tools enables Comstar to simplify the management of its network while delivering revenue-generating services.

"The Russian telecommunications market is at a stage where carriers, like Comstar, have an opportunity to bypass all legacy network hassles and move directly to next-generation Ethernet-based networks," said Andrew Feldman, Riverstone's vice president of corporate marketing and development. "To make that leap and join some of the most advanced carriers in the world, Russian carriers need the high-performance service creation and delivery solutions that Riverstone offers."

In 2001, the number of Internet subscribers across Russia doubled as the telecommunications services market generated $6.6 billion in revenue, a more than 24 percent increase over 2000. Last year, carriers in Moscow alone generated 80 percent of total Russian telecommunications services revenue. With an estimated growth rate of 15 percent through 2004, the Russian telecommunications services market is projected to reach $10 billion by 2005.

About Comstar

Originally established in 1989 to provide Russian customers with high quality local, national and international communication, Comstar is now one Moscow's leading service providers. Since 1996, Comstar has been providing Internet access and other data services to financial institutions, corporations, secondary service providers, small and medium businesses, and residents throughout Moscow.

About Riverstone Networks

Riverstone Networks, Inc. (Nasdaq:RSTN) provides solutions for metropolitan area networks, enabling carriers to convert raw bandwidth into profitable services. In more than 50 countries, carriers operating many of the world's largest metropolitan area networks depend on Riverstone to create and reliably deliver profitable services over legacy and next-generation infrastructures. Worldwide, Riverstone routers are the trusted choice of many telecommunications carriers. For more information, please visit Riverstone's web site at www.riverstonenet.com.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to market growth, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include the risks detailed from time to time in Riverstone Networks' SEC reports, including its quarterly report on Form 10-Q for the period ended August 31, 2002. Riverstone Networks disclaims any intent or obligation to update or revise these forward-looking statements.

Note to Editors: Riverstone Networks is a trademark of Riverstone Networks, Inc. All other trademarks, service marks, and trade names belong to their respective owners.