Redback Networks Expands Operations to Europe.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 11, 1999--

Redback Is First Subscriber Management System Vendor to Tap into

Expected $2-Billion-plus European Broadband Market

Redback Networks, Inc., (NASDAQ: RBAK) today announced the opening of its European headquarters in Rotterdam, The Netherlands, and its regional offices in London, Paris, and Frankfurt, making the company the first to deliver Subscriber Management Systems(TM) (SMSs) to international markets. Redback will supply Europe's leading carriers, Internet Service Providers (ISPs), and cable Multiple Service Operators (MSOs) with advanced networking solutions for the rapid deployment of high-speed broadband access to the Internet and corporate networks.

Datamonitor predicts that the European market for cable modem services (access, services, and modem leasing services) will reach $530 million and Asymmetric Digital Subscriber Line (ADSL) services (access and modem leasing services) will grow to $1.5 billion by the year 2000. With Redback's award-winning Subscriber Management Systems, European carriers, ISPs and MSOs will be able to sign up and manage thousands of broadband subscribers without having to rebuild their existing network infrastructures. Once subscribers have access to broadband services, service providers can use their Redback SMS solutions to speed deployment of new, value-added broadband services -- such as news, music, movies and other "on-demand" services -- regardless of the access technologies the subscriber uses -- xDSL, cable, fiber or wireless.

"The time is ripe for us to start offering our Subscriber Management System to European service providers, since they are just now beginning to deal with the burden imposed by quickly provisioning huge numbers of new broadband service customers," said Dennis Barsema, president and chief executive officer at Redback Networks. "Another big plus is that our customers can use the SMS to handle accounting and management control over end users and direct them to any specified network designation."

"The market for broadband services -- including DSL, cable modems, and wireless -- is simply exploding in Europe," said Danny Briere, president of Boston-based TeleChoice. "Not only are the CLEC and alternative local carrier markets opening up, but the Applications Services Providers (ASPs) are also taking off. Aside from access to the copper links, the single biggest factor holding most people back is resolving back-office issues -- billing, customer care, and Operational Support Systems."

Joop van Aard is leading Redback's international expansion efforts as vice president of operations for Europe, the Middle East, and Africa. He established the European head office in Rotterdam, recruiting a sales and technical support organization, and he created distribution channels in Europe, the Middle East, and Africa (EMEA) for Redback's SMSs. Formerly, van Aard was the EMEA vice president for Lucent's Data Network Systems division.

"Redback will be an aggressive player in the international market," said van Aard. "We are bringing our European sales offices up to strength quickly, and we are actively working to develop mutually beneficial relationships not only with service provider customers but also with European technology vendors."

As part of its European initiative, Redback is implementing a European Customer Support Center in Rotterdam that will provide 24-hour "follow the sun" support to its international customers. Additional support will be provided by Redback global partners Nokia and Fujitsu as well as by local partners, including Keynet in the United Kingdom, Pandacom in Germany, and Telindus in The Netherlands. Redback will partner with additional companies during the coming six months as it developers its regional partner model.

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 high-speed broadband access to the Internet and corporate networks. The company's Subscriber Management System(TM) (SMS) connects and manages large numbers of subscribers using any of the major high-speed access technologies such as Digital Subscriber Line (DSL), cable, and wireless. The SMS received Best of Show honors for WAN and remote access equipment at NetWorld+Interop, Las Vegas, in May 1998, and was honored by Telecommunications Magazine as one of the "Lucky 13" hot products in telecom at the SUPERCOMM '99 show in Atlanta.

Customers wanting more information about Redback products can visit its World Wide Web site at http://www.redback.com, or contact the company at 408-548-3500.

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 sales. 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 Redback Networks' Form S-1, as amended and filed with the Securities and Exchange Commission on May 17, 1999, and the other reports filed from time to time with the Securities and Exchange Commission.