Press Release

Chunghwa Telecom Selects Redback for Advanced Broadband Services for Triple Play Over DSL Redback's SmartEdge Service Gateway Enables Smart Broadband Networks for Video on Demand, Broadcast TV, VoIP and Internet Delivery

SAN JOSE, Calif., August 18, 2004 – Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking systems, today announced that Chunghwa Telecom, the largest, primary telecommunications provider in Taiwan and one of the top ten broadband providers in the world, has selected Redback SmartEdge® Service Gateway systems to expand its national broadband network and provide new per-subscriber services, including broadcast television, video-on-demand, VoIP, and Internet access. The SmartEdge Service Gateway systems enable Chunghwa Telecom to have a Smart Broadband Network that provides customized services based on each user’s requirements. The SmartEdge Service Gateway systems perform intelligent video replication for broadcast feeds in the new network topology.

Besides offering broadband connectivity to a large customer base, Chunghwa Telecom offers -multiple channels of broadcast television, movies from eight different providers, broadcasts of live concerts or dramatic productions, news feeds, music and learning channels. Later, the company plans to add online gaming and karaoke-on-demand, as well as other services.

"We are pleased to help Chunghwa Telecom build a Smart Broadband Network that can more fully utilize the power of broadband as a personal delivery system for content and communications," said Simon Williams, vice president of sales and operations for Asia Pacific, Redback Networks. "We believe the SmartEdge Service Gateway platform is ideally suited for the rigorous demands of a large-scale broadband video delivery network."

The Redback SmartEdge Service Gateway system combines hardware and software to provide subscriber management with dynamic policy enforcement, carrier-class IP routing and services, multicast and advanced video capabilities and high performance Quality of Service (QoS).

About Redback Networks

Redback Networks Inc., a leading provider of next-generation broadband networking equipment, enables carriers and service providers to build third-generation Smart Broadband Networks that can profitably deliver simplified, personalized, portable subscriber services to consumers and businesses. The company's carrier-class, consumer-scale SmartEdge Router and Service Gateway platforms for Consumer IP combine subscriber management systems and edge routing in conjunction with the NetOp Element and Policy Manager platform to provide a powerful, flexible infrastructure for managing both subscribers and value-added 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 and service providers. For more information, visit Redback Networks at www.redback.com.

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REDBACK and SmartEdge are trademarks registered at the U.S. Patent and Trademark Office and in other countries. SMS and NetOp are trademarks or service marks 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 KT’s ability to meet the demands of their customers with simplicity and reliability, the prospects for KT’s Managed/Integrated URL filtering and Time Limit Service and the ability of Redback’s products to meet the current and future demands of KT. 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’s business are set forth in the documents filed by Redback 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.