France Telecom Selects Redback Networks Subscriber Management System for New Broadband Services; France's national carrier to deploy DSL to homes, businesses and ISPs.

Business Editors/Hi-Tech Writers

PARIS--(BUSINESS WIRE)--May 3, 2000

Redback Networks, Inc., (NASDAQ: RBAK) today announced that France Telecom has selected Redback's Subscriber Management System(TM) (SMS) for the deployment of its new digital subscriber line (DSL) services for residential and business customers. Deployment is currently underway in Paris and 19 other cities, expanding rapidly to national availability. France Telecom will also offer wholesale DSL service to ISPs and Virtual Private Network (VPN) services to business customers.

France Telecom will use the Redback SMS's Service Selection capabilities to allow customers to choose between multiple broadband services. Customers will initially be offered fast Internet access via two new services, Netissimo 1 and Netissimo 2. They will also be able to access multiple ISPs offering unique content, including France Telecom's own ISP, Wanadoo. The Redback SMS' Service Selection capability allows subscribers to select and automatically provision multiple services each time they log on to their Internet access service or ISP portal. This capability is enabled by the SMS's PPP over Ethernet functionality, combined with its unique multiple-context technology.

As in much of Europe, France Telecom's main customers for new broadband services are likely to be home and SOHO users willing to pay a premium for high-speed Internet access to enhance applications like telecommuting, email, shopping, interactive gaming, and other content-rich services. According to U.S. financial company Salomon Smith Barney, Europe will have 26.5 million broadband subscribers by 2005, paying over 17 billion Euros for broadband services.

France Telecom considers the Redback SMS best meets its needs for a flexible, scalable solution for managing many thousands of subscribers to its high-speed Internet access services. Redback's ability to let individual subscribers dynamically select from multiple broadband services will help to maximize revenue from these services and gives France Telecom the flexibility to deploy and provision new added-value services very quickly.

Commented Joop van Aard, Redback Networks' vice president of operations, Europe, Middle East, and Africa, "France Telecom has ambitious plans for deploying DSL services across the nation. At the tactical level, the Redback SMS simplifies the provisioning process to help them speed time-to-market. More strategically, the Redback SMS allows France Telecom to implement new business models for DSL, both wholesale and retail, and extend their service offerings without changing their existing infrastructure."

The Redback SMS aggregates thousands of broadband subscribers and enables the creation and delivery of value-added IP services. When deployed at service provider's Points of Presence (POPs), the SMS accepts a large concentration of broadband subscriber traffic from devices such as DSL Access Multiplexers (DSLAMS) and Cable Modem Termination Systems (CMTSs). The Redback SMS then applies scalable user configuration and management to the subscriber data streams and delivers groomed traffic to providers' backbone routers - offloading from the routers the intensive processing that could create bottlenecks in high-speed networks.

About Redback Networks, Inc.

Founded in 1996 and headquartered in Sunnyvale, Calif., Redback Networks, Inc., is a leading provider of advanced networking solutions that enable carriers, cable multiple system operators (MSOs), and service providers to rapidly deploy broadband access to the Internet and corporate networks. The company's Subscriber Management Systems (SMS) connect and manage large numbers of subscribers using any of the major broadband access technologies such as Digital Subscriber Line (DSL), cable, and wireless. In November 1999, Redback Networks signed a definitive agreement to merge with Siara Systems-a leading developer of metro area optical networking equipment-creating the first equipment supplier focused exclusively on developing integrated solutions for the New Access Network.

Redback and the Subscriber Management System are trademarks of Redback Networks, Inc. Other trademarks, service marks, and trade names belong to 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. Forward-looking statements include statements regarding future sale and market size. 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 and other risks relating to Redback Networks' business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-Q, and the other reports filed from time to time with the Securities and Exchange Commission.