Press Release

Korea Telecom, the World's Leading DSL Provider, Selects Redback's Next Generation SmartEdge Solutions KT Standardizes on Redback to Build the World’s Most Advanced Broadband Network With Innovative Value-Added Consumer Services

SAN JOSE, Calif., July 21, 2004 – Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking systems, today announced that KT, formerly Korea Telecom, has selected the SE800 SmartEdge® Service Gateway platform for managing broadband subscribers and services. KT has already deployed platforms from Redback for a significant portion of its existing ADSL networks and now plans to utilize Redback platforms in its expanding VDSL, Wi-Fi, and metro Ethernet networks. Using advanced subscriber management and edge routing from Redback’s next-generation SmartEdge Service Gateway platforms with its NetOp™ Policy Manager, KT is implementing value-added services, including managed/integrated URL filtering offerings today and integrated home surveillance, tiered bandwidth and time-limit based services in the future.

“KT is proud to be one of the world’s leaders in offering innovative, valuable services to our customers across our high-speed broadband Internet access network,” said Mr. Kyung Cheol Park, Director of the Internet Planning Division of Internet Planning Team of KT. “The Redback platform plays a strategic role in our networks and enables us to provide individualized services economically and with very high reliability.”

“We are extremely pleased that KT, one of the clear broadband leaders, has embraced our technology and selected the SmartEdge Service Gateway platform to deploy these innovative services”, said Kevin DeNuccio, president and chief executive officer of Redback Networks. “We spent the last three years developing our next-generation platform to meet the changing needs of the broadband service provider. Our focus today is on high bandwidth per subscriber, and advanced quality of service driven applications like voice and video all delivered on an ultra-high reliability platform. We feel we have the industry leading platform to fit this demanding criteria.”

Some of subscriber services from KT include:

Managed/Integrated URL filtering (Currently Offered) – The highly popular “Clean-I Service” integrates URL or “family” filtering with Internet access and applies it on a per subscriber basis. The service, while under control of each head of household, is managed centrally by KT and applied transparently to a subscriber’s web surfing. Redback’s subscriber management software recognizes which customers have opted for the service and re-directs web traffic through URL filtering servers before delivering it to the consumer. The service is currently offered only to ADSL users, but KT wants to make it available to VDSL, WiFi and metro-Ethernet subscribers as well. Redback’s subscriber management can manage subscribers and services across all modes of Internet access.

Time Limit Service (To be Launched) – The “Time Codi Service” is intended as a tool to enable parents to limit the time their children spend online. Subscribers to the service have Internet traffic directed by Redback’s platform through a central site that keeps track of time usage each day.

By delivering these services, and others to come, on the SmartEdge Service Gateway platform, KT can meet the needs of their customers with simplicity and reliability.

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.