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Telefonica del Sur Expands Next Generation Network With Redback Networks' SmartEdge Multi-Service Edge Router.

SAN JOSE, Calif. -- Redback Networks Inc. (NASDAQ:RBAK), a leading provider of next-generation broadband networking systems, today announced that Telefonica del Sur (Telsur), the incumbent carrier in Chile's southern region, has chosen Redback's SmartEdge(R) Multi-Service Edge Router to expand its next generation network and power its business and residential services. Already a Redback customer for five years, Telsur plans to leverage the combination of edge routing, Ethernet aggregation and subscriber management to simplify their network, to expand capacity, and to decrease the time to market for new services. The upgraded Smart Broadband Network is designed to reduce capital and operational expenses.

"We needed a proven platform that could scale our next generation network and provide a smooth migration from ATM to Ethernet transport and advanced IP services," said Inaki Larraza, director of operations at Telsur. "The combination of edge routing and subscriber management should enable us to provide value-added services such as Self Enrollment, Tiered Bandwidth, and future services such as IPTV and fixed mobile convergence."

According to Point-Topic, Chile is one of the top countries in broadband penetration in Latin America. With a subscriber growth rate of over 100% per year, ADSL has surpassed cable to become the leading broadband access technology in Chile during 2004. Large investments in telecommunications, a favorable regulatory environment, and e-government initiatives were all factors in Chile's broadband growth.

"We're proud to have Telefonica del Sur as they join a larger population of Redback customers in Latin America. Redback is responding to the demand in Latin America by increasing sales and support throughout the region," said John Spiliotis, vice president sales and operations for the Americas at Redback. "We look forward to mutual success for Telefonica del Sur and Redback as we address the demand for broadband services in Latin America."

The Smart Broadband Network provides a single, converged IP network infrastructure that can deliver voice, video and data services with a simplified architecture that reduces both capital and operational expenditures. A recent study by Yankee Group found that deploying a product with capabilities similar to the SmartEdge multi-service edge routers can reduce the total cost of ownership of a next generation network by over 20%, including the reduction of operations expense by over 50%.

About Telsur

Telefonica del Sur is a telecommunications leader in Chile, with coverage in various regions. With a solid position in the fixed-line market, the company also offers dial-up and broadband Internet services, video security monitoring, alarms and entry access controls, and national and international long distance, which are all available through 121 subsidiaries of Telefonica del Sur. In addition, Blue Two Chile, which is a subsidiary of Telefonica del Sur, is developing the implementation of the first public network with access to wireless broadband Internet access through Bluetooth and Wi-Fi technology.

About Redback Networks

Redback Networks Inc., a leading provider of next-generation broadband networking systems, enables carriers and service providers to build Smart Broadband Networks that are personalized, adaptive and efficient. The Smart Broadband Network provides advanced IP based subscriber services to consumers, businesses and wholesale customers. The company's carrier-class, scalable SmartEdge product family integrates carrier class edge routing, advanced subscriber management and high density Ethernet aggregation functions. In conjunction with the NetOp(TM) Element and Policy Manager platforms the SmartEdge family provides a powerful and flexible infrastructure solution that enables delivery of next-generation Broadband IP services.

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 500 carriers and service providers, including major local exchange carriers (LECs), inter-exchange carriers (IXCs), PTTs, service providers and ISPs. For more information, visit Redback Networks at

REDBACK and SmartEdge are trademarks registered at the U.S. Patent and Trademark Office and in other countries. NetOp is a trademark of Redback Networks Inc. All other products or services mentioned are the trademark, service marks, registered trademarks or registered service marks of 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 and including, without limitation, statements regarding Telefonica del Sur's use of the SmartEdge products and the anticipated benefits to Telefonica del Sur, including whether the SmartEdge family simplifies Telefonica del Sur's network, decreases time to market for new services, reduces capital and operations expenses, provides a smooth migration from ATM to Ethernet transport, enables IPTV and fixed mobile convergence as well as Redback Networks' expectations or on state of Chile's broadband industry. 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 risks and other risks relating to Redback Network's business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission (SEC), specifically the most recent report on Form 10-K, Form 10-Q, Form 8-K, Redback's Registration Statement on Form S-3 (File No. 333-114352), and amendments thereto, and the other reports filed from time to time with the SEC.
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Publication:Business Wire
Geographic Code:1USA
Date:Jun 26, 2006
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