Taiwan's HiNet to Expand National DSL Service With Redback Networks.

Business Editors/High-Tech Writers

TAIPEI, Taiwan--(BUSINESS WIRE)--Sept. 5, 2000

Selection of Redback SMS Demonstrates Taiwan's Commitment

to Remain At the Forefront of the Internet Revolution

Redback Networks, Inc. (NASDAQ:RBAK), a leading provider of advanced networking solutions, announced that HiNet, Taiwan's leading Internet Service Provider (ISP) and division of the Data Communication Business Group in Chunghwa Telecom (CHT) - Taiwan's incumbent telecom carrier, will purchase Redback(R) Subscriber Management Systems(TM) (SMS) to enhance delivery of new, high quality and revenue-generating Internet Protocol (IP) services to all of CHT's Digital Subscriber Line (DSL) subscribers.

HiNet will expand its existing SMS-based DSL service by deploying additional Redback equipment in sixteen cities throughout Taiwan including Taipei, Taoyuan, Hsinchu, Miaoli, Taichung, Changhua, Nantu, Yunlin, Chiayi, Tainan, Kaohsiung, Pingtung, Taitung, Penghu, Yilan, and Hualien.

The Redback SMS employs sophisticated system architecture to deliver subscriber management and service aggregation in very large broadband networks. Delivering unprecedented scalability, performance and carrier-class redundancy, it is designed to enable carriers and service providers to build the next generation of broadband public networks and value-added IP services. Deployment of the SMS is an indication of HiNet's intention to maintain its position as a leading ISP in Taiwan, one of the world's most technologically aware countries. With over 1.7 million subscribers, HiNet is ranked among the world's top five ISPs.

With PPPoE (Point-to-Point Protocol over Ethernet) support and value-added features such as on-the-fly subscriber provisioning, anti-spoofing and multicast, CHT is confident that the Redback SMS will help HiNet provide the best broadband service to its subscribers.

The new systems will be vital to CHT's business as the Asynchronous Digital Subscriber Line (ADSL) user base expands beyond its current level of about 50,000 subscribers to 240,000 by year-end. CHT's current market share represents over 90 percent of the broadband space, and the carrier plans to stay ahead by delivering the best possible broadband services to its increasingly sophisticated subscriber base.

Steve Young, Vice President of Asia Pacific operations at Redback Networks, said, "We are thrilled that CHT has once again chosen Redback for the expansion of their ADSL service. It's a resounding endorsement of the stability and reliability of the Redback Subscriber Management System. HiNet is one of the most advanced and respected ISPs in Taiwan and we are honored to have been the technology partner of choice. This contract demonstrates the strength of the Internet in Asia and positions Taiwan as one of the most advanced technology users in the world."

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 market-leading Redback(R) 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 (DSL), cable, and wireless. To deliver integrated transport solutions for metropolitan optical networks, Redback's SmartEdge(TM) multi-service platforms leverage powerful advances in application-specific integrated circuit, IP, and optical technology. With this product portfolio, Redback Networks is the first equipment supplier focused exclusively on developing integrated solutions for the New Access Network.

Redback is a U.S. Registered Trademark. The Subscriber Management System and SmartEdge 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 product growth and deployments and market expansion . 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.