Press Release

Redback Announces Shipment Of Over 500 SmartEdge Systems Over 80 Service Provider Customers Worldwide Building “Smart Broadband Networks” With Redback Next-Generation Platform

CHICAGO, Illinois, Supercomm Conference, June 22, 2004 – Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking systems, today announced that it has passed a major milestone with shipments of its SmartEdge® systems now exceeding 500 units to over 80 carrier or service provider customers worldwide.

“We are extremely proud to achieve this milestone, which signals achievement of worldwide market acceptance of our next generation technology for building broadband and IP networks,” said Kevin DeNuccio, president and chief executive officer, Redback Networks. “Carriers and service providers around the world have recognized the exceptional performance, reliability and services capabilities of the SmartEdge platform. They are building Smart Broadband Networks with our SmartEdge platform as the cornerstone to meet the quickly growing demands and opportunities for broadband and IP services.”

Revenue from SmartEdge systems grew by more than 100 percent quarter-over-quarter from Q4 2003 to Q1 2004. During Q1 2004, sales of SmartEdge systems totaled nearly 40 percent of overall product revenue. The shift to next-generation networks and new applications such as Voice over IP, broadcast video, video on demand and online gaming has helped grow new sales for SmartEdge systems.

The SmartEdge family is available as a Router or Service Gateway system. As a service provider edge router, it can aggregate leased lines, ATM and Frame Relay and deliver VPN services with very high reliability and scalability. As the SmartEdge Service Gateway system, it integrates the B-RAS strength of Redback's industry-leading SMS™ family of subscriber management with the SmartEdge platform's purpose-built hardware and software to provide subscriber management with dynamic policy enforcement, carrier-class IP routing, ATM mediation, MPLS VPNs, multicast and advanced video capabilities and high performance Quality of Service (QoS).

With the broadband market growing quickly in number of subscribers, bandwidth used per subscriber and services provided to each subscriber, carriers and service providers are turning to the SmartEdge Service Gateway platform to meet the challenges and opportunities. Carrier-class reliability, integrated consumer and business broadband services and simple service creation and management are the primary drivers for the success of the SmartEdge Service Gateway platform.

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 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.

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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 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 Network’s expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding Liaoning Communications Corporation’s ability to expand and enhance its broadband and IP services offering and the actual results of scalability, reliability, flexibility, the ability to achieve lower operational costs and meet new and future needs. 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, specifically the most recent report on Form 10-K, Form 10-Q, Forms S-4 and the other reports filed from time to time with the Securities and Exchange Commission.