Redback Adds AOS Software Enhancements to SMS Platform; New Features Increase Service Offerings and Time-to-Revenue for Service Providers.

Business Editors/High-Tech Writers

SUPERCOMM 2002

Booth 12007, Exhibit Hall C3

SAN JOSE, Calif.--(BUSINESS WIRE)--May 30, 2002

Redback Networks Inc. (Nasdaq:RBAK), a leading provider of next-generation broadband networking equipment, today announced it has added significant new functionality to its Aggregation Operating System (AOS) on its industry-leading SMS(TM) platform of subscriber management systems. The new software features will help service providers introduce incremental service opportunities while reducing the operational cost of adding new subscribers and services. The new functionality introduced in the AOS 5.0.6 release is currently in production networks or in trials with over seven customers worldwide.

Main feature additions to AOS 5.0.6 include Dynamic Bandwidth on Demand, Clientless IP Service Selection (CLIPS) and PPP "Keepalive." Significant enhancements have also been made to the platform's layer 2 tunneling protocol (L2TP) feature suite and Remote Authentication Dial-in User Service or RADIUS attributes.

In addition to the release of AOS 5.0.6, Redback is introducing its service selection gateway toolkit, the Domain-Less Service Section (DLSS). Redback provides the DLSS source code and documentation royalty free to service provider customers, to allow for easy and inexpensive customization and enhancement. The DLSS leverages open protocols like RADIUS and SNMP to make it fit seamlessly into existing tools without additional expense.

"The new features of Redback's AOS, gives our customers the flexibility to offer new services to end-users, who in turn have the ability to dynamically select these services with ease," said Georges Antoun, senior vice president of Marketing and Product Management at Redback. "AOS 5.0.6 with DLSS enables new services to be created, inserted and deployed using the service providers' existing infrastructure seamlessly, giving them the ability to change service strategies frequently to suit market conditions while lowering operational costs."

Differentiated Services Lead to Incremental Revenue Streams

-- A key feature of the SMS platform is the Redback-developed DLSS gateway,
engineered to be agnostic for any encapsulation type (PPP, PPPoE, CLIPs,
Bridged and Routed 1483) and transport method. This feature provides
"touch-less" provisioning capabilities to end-users to automate customer
enrollment, ISP and service selection. With simple administration, service
providers can upgrade their service offerings while reducing system management
costs and increasing revenue margins. The platform also supports third party
OSS vendors.

-- As the demand for high speed Internet access increases, consumers want
increased bandwidth for a specific period of time (hourly or session based) and
are willing to accept an incremental charge for it. This ability called Dynamic
Bandwidth on Demand could be used for specific events like online viewing of
sporting events or video conferencing. The Dynamic Bandwidth on Demand feature
of the SMS platform helps consumers to self-provision additional bandwidth
using a simple web interface that updates subscriber records including billing,
using RADIUS. The service provider saves significant management costs, as no
operator intervention is needed. Further this capability can be applied
regardless of the protocol used to connect to the SMS platform, be it PPPoE
client, PPPoE CPE device, PPPoA routers or IP secured-ARP connections.

-- The SMS platform's CLIPS feature uses the DHCP server functionality. This
offers increased control over subscribers' IP connections, without requiring
the provider to rely on an external server. It also binds the IP flows to
different services or contexts depending on what new services are selected by
the subscribers. This feature, applicable to cable, DSL, wireless and Ethernet
environments, helps service providers scale their small as well as large
networks and eliminates the need for any client software or Access Control
Lists (ACLs), greatly saving operations costs.

-- In addition, the PPP Keepalive feature allows the service providers to bill
subscriber connections on a per-minute basis, giving the service provider
better visibility and control over subscriber status, configuration and
billing.

The SMS platform's AOS software enhancements will be demonstrated at the SUPERCOMM Trade Show in Atlanta in the Redback Networks booth 12007 in exhibit hall C3 from June 4 through 6, 2002.

About Redback Networks Inc.

Redback Networks enables carriers and service providers to build profitable next-generation broadband networks. The company offers a product portfolio that includes industry-leading subscriber management and optical platforms, as well as a comprehensive set of network provisioning and management software.

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 350 carriers and service providers, including major local exchange carriers (LEC), inter-exchange carriers (IXCs), PTTs and service providers. Recent news releases and other information can be found on Redback's web site at www.redback.com.

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 sales, sales distribution, product enhancements, product offering, support services, delivery of services and future success of the strategic relationship. 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. Such risks include without limitation failure to achieve successful implementation of the strategic relationship and other risks relating to Redback Networks' business that are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-K, Form 10-Q, and the other reports filed from time to time with the Securities and Exchange Commission.

Note to Editors: REDBACK is a trademark registered at the U.S. Patent & Trademark Office and in other countries. SMS is a trademark or service mark of Redback Networks Inc. All other products or services mentioned are the trademarks, service marks, registered trademarks or registered service marks of their respective owners.