Korea Telecom Awards Multi-Million Dollar Contract to Redback Networks For SMS Products.

Business Editors/High-Tech Writers

SEOUL, Korea--(BUSINESS WIRE)--Oct. 23, 2000

Korean PTT to Leverage the Redback SMS 10000 For Major Deployment

in Fastest Growing Asian Broadband Market

Redback Networks, Inc. (NASDAQ:RBAK), a leading provider of advanced access networking solutions, announced today that Korea Telecom (NYSE:KTC) has chosen the Redback(R) Subscriber Management System 10000 (SMS) to support the national rollout of its Digital Subscriber Line (DSL) broadband services. Located in one of the fastest growing markets in Asia, Korea Telecom is currently deploying the SMS 10000 in multiple cities and plans to provision several million additional broadband subscribers nationwide by the end of the year, making this one of the largest access network deployments of its kind in the world.

Soo-Hyung Kim, Vice President of Korea Telecom's Network Engineering Center, said: "We chose the SMS 10000 for its performance, scalability and full redundancy for all components. Redback's product allows us to terminate more DSL customers than other broadband subscriber management solutions available today. We expect high returns on investment and cost savings, and we are confident that Redback will be able to meet and exceed our expectations."

The SMS 10000 has industry-leading port density and supports up to 100,000 active and 500,000 provisioned DSL connections in a single SMS chassis. Consequently Korea Telecom is able to derive significant capital savings by benefiting from a smaller footprint in PoPs (Points of Presence) while they rapidly scale up to a larger subscriber base.

By enabling next-generation services such as Virtual Private Networks (VPNs) and Service Level Agreements (SLAs), the SMS 10000 will also allow KT to generate substantial incremental revenue and gain a competitive edge. In turn, customers will enjoy a wider choice of innovative next-generation IP services.

Steve Young, Vice President of Asia Pacific Operations for Redback Networks, said: "To be selected by the world's seventh largest telecom service provider for mission-critical broadband service is a feather in our cap. This coup validates once again Redback's commitment to this region, and the potential growth Asia Pacific offers for the development of next-generation access networks."

The SMS 10000 offers a high degree of flexibility by aggregating multiple services including broadband subscriber management, leased line aggregation and dial off-load. The SMS can be placed between Digital Subscriber Line Access Multiplexers (DSLAMs), cable or wireless head-ends and Internet backbone routers, and supports a wide range of encapsulation schemes including Point-to-Point Protocol (PPP) over ATM, PPP over Frame Relay and PPP over Ethernet (PPPoE). Designed to support traffic-intensive, mission-critical broadband networks, the SMS 10000 features carrier-class redundancy for all system components.

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 operators, and service providers to rapidly deploy broadband access and services. The company's market-leading Subscriber Management Systems(TM) (SMS) connect and manage large numbers of subscribers using any of the major broadband access technologies such as Digital Subscriber Line, cable, and wireless. To deliver integrated transport solutions for metropolitan optical networks, the Redback SmartEdge(TM) (SE) multi-service platforms leverage powerful advances in application-specific integrated circuit, IP, and optical technology. The Redback Enterprise Service Point(TM) (ESP) family is a new breed of intelligent carrier-managed CPE devices designed specifically to help service providers capture high-margin revenue from advanced IP services. The Redback Service Management Family allows service providers to easily publish, activate and manage IP services and allows their customers to subscribe to these services on demand. With this product portfolio, Redback Networks is the first equipment supplier focused exclusively on developing integrated solutions for the New Access Network.

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 growth of the market and product deployments. 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 and 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.

Note to Editors: Redback is a U.S. Registered Trademark; Subscriber Management System, SmartEdge and Enterprise Service Point are Trademarks of Redback Networks, Inc. Other trademarks, service marks, and trade names belong to their respective owners.