Press Release

New Redback Capability Boosts Reliability, Scalability, and Ease of Operation for Broadband Internet Service Providers Enhanced LNS and LTS on Next Generation SmartEdge Platform Provides Converged L2TP Tunneling and Edge Routing

SAN JOSE, Calif., August 30, 2004 – Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking systems, today announced that the latest software for its next-generation SmartEdge® platform now gives Internet Service Providers (ISPs) an enhanced ability of receiving high bandwidth tunnels from broadband wholesalers. The capability enables ISPs to consolidate elements of their networks that are currently separate and boost overall reliability, scalability and ease of operation.

Now the Redback SmartEdge family provides a complete suite of enhanced functions for sending, receiving or balancing wholesale broadband L2TP tunnels, including L2TP Network Server (LNS), L2TP Access Controller (LAC) and L2TP Tunnel Switch (LTS) on a platform designed for carrier-class reliability, consumer-level scalability and integration of consumer and business IP services. Integrated with the edge routing functions of the SmartEdge platform, the enhanced L2TP functionality enables ISPs to combine previously separate edge router and LNS into one converged platform.

The new enhanced L2TP functionality includes:

· A new level of reliability for maintaining the individual sessions within L2TP tunnels, even in the event of a hardware failure. Traditional LNS solutions can fail-over L2TP tunnels in the event of a hardware failure, but all individual subscriber sessions are lost. The enhanced LNS for the SmartEdge platform now ensures that tunnels and individual PPP sessions remain intact and uninterrupted in the event of a line card fail-over.

· Enhanced LTS for the SmartEdge platform with the same ability to fail-over individual sessions. As an LTS, wholesale connections from a provider can be load balanced between separate LNS units.

· Seamless integration between the L2TP tunneling functions and MPLS VPNs on the same platform. VPN tunnels can now connect seamlessly with L2TP tunnels for high levels of performance and scalability.

“High reliability and performance is crucial for the broadband ISP,” said Dr. Ray Mota, chief research officer, Synergy Research Group. “Integrating LNS and MPLS VPNs on a single platform and offering the advantages of the Redback SmartEdge system can enable service providers to achieve very high reliability and operational efficiencies to serve their customers and run their business.”

“The new, enhanced LNS and LNS on our next-generation SmartEdge platform propels us into an important, growing market segment,” said Shailesh Shukla, vice president of marketing and business development for Redback Networks. “Introducing enhanced LNS functionality on the SmartEdge platform with individual session fail-over protection extends an already highly reliable, scalable and efficient platform and brings it to a new level for broadband ISPs.”

Additional advantages of LNS or LTS on the SmartEdge platform include:

· Offers altogether new levels of reliability for broadband ISPs by taking advantage of the carrier-class reliability designed into the SmartEdge platform

· Unlike other platforms, the LNS and LTS functionality is built directly into the SmartEdge software and does not require a separate line card or resource card. The function is performed entirely in software to give it high levels of performance, scalability and flexibility. In addition, the capability does not require giving up line card slots in the SmartEdge chassis

· Scales uniformly across the SmartEdge system and its line cards so that capacity can be transparently increased through use of additional line cards

· LNS functionality can be integrated with high-performance edge routing and broadband subscriber management all on a single platform

· Same common operations model, management and experience as other SmartEdge platforms in use at the ISP or broadband wholesaler

· Full support for sending or receiving subscriber traffic to or from MPLS VPNs for LNS terminated sessions

· Ability to support 10 Gigabits per second interfaces without a “fork-lift” chassis upgrade

The LNS and LTS capabilities are built into the SmartEdge operating system software and can be initiated by purchasing a license for them. The LNS capability is available immediately and LTS as well as individual session fail-over protection will be available in the next few months.

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 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 and, in conjunction with the NetOp Element and Policy Manager platform, 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. 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 the enhanced LNS and LTS capabilities, the ability to provide converged L2TP and edge routing functionality, the ability to make Tunnel Level Reliability available for general delivery and its ability to maintain tunnels and PPP sessions, the seamless integration of L2TP tunnels and MPLS VPNS and the general performance, scalability and reliability of the L2TP tunneling functionality on the SmartEdge platform. 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.