Press Release

BT Exact Testing Confirms Quality & Reliability of Redback's Next Generation Service Gateway Extensive Tests Prove State-of-the Art Levels of Reliability, QoS and VPN Scalability of SmartEdge 800 Service Gateway

SAN JOSE, Calif., March 22, 2004 - Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking equipment, today announced results from extensive testing by BT Exact, the research technology and IT operations business of British Telecommunications plc (BT). The tests confirm that Redback's next-generation SmartEdge® 800 Service Gateway platform offers excellent levels of reliability, Quality of Service (QoS) support and Virtual Private Network (VPN) scalability. These qualities make it well suited for telco service providers offering the next generation of consumer broadband connectivity with personalized services and business Internet services, such as MPLS VPN. Many world-class service providers, including BT, rely on results from BT Exact testing when making infrastructure decisions.

"It's essential for service providers to understand not just a product's specifications but also its real ability to meet the requirements for next-generation edge and broadband networks," said Dr. Tony Dann, head of IP test and evaluation at BT Exact. "We were very impressed with the Redback SmartEdge 800 Service Gateway platform and the reliability and scalability it demonstrated in our tests. We were also struck by the performance of its Quality of Service features, which demonstrated accurate adherence to configured QoS policies -- a critical requirement for deployment."

"BT Exact is the respected authority in the testing and evaluation of IP networking infrastructure," said Simon Williams, vice president of product management for Redback. "The BT Exact testing assessed the areas critical to the successful deployment of next generation broadband networks and the results confirm the value and uniqueness of the SmartEdge 800 Service Gateway."

The BT Exact testing confirmed the capabilities of the SmartEdge Service Gateway in the following areas:

Reliability --As broadband access becomes a primary means of communication for both business and residential users, the ability to offer service guarantees and uninterrupted sessions is crucial. Designed from the ground up for carrier-class, consumer-scale operation, the SmartEdge 800 Service Gateway platform achieves an impressive level of reliability, as shown from the BT Exact tests. First, the platform was tested to show non-stop packet forwarding even through a hardware failure, with zero loss of packets. Next, BT Exact tested the system for the ability to upgrade software without restarting the system or interrupting existing operations and this test, too, was done with zero loss of packets.

Advanced Quality of Service Management Capabilities-- QoS is another critical element of next generation broadband networks. The ability to enforce QoS in a highly scalable manner without impacting performance is essential for service providers to offer various levels of bandwidth for a variety of services, including Voice Over IP (VoIP) and video. QoS provided by Redback's SmartEdge 800 Service Gateway was found to perform state-of-the-art traffic shaping and rate limiting. Even complex QoS operations were tested at full line rate, proving that extensive IP packet classification, marking and policing can be conducted without any impact on overall performance.

VPN Functionality-- The demand for VPNs continues to grow as more employees demand remote access from home or while traveling, and enterprises are utilizing VPN services to connect branch offices and business partners. BT Exact tested the SmartEdge Service Gateway platform's ability to handle a variety of demanding MPLS VPN configurations. The results showed the world-class scalability and performance of the SmartEdge 800 Service Gateway as a VPN delivery vehicle.

More detailed test results as well as a complete overview of the BT Exact testing can be obtained from a Redback Networks representative.

About Redback Networks Redback Networks Inc., a leading provider of next-generation broadband networking equipment, enables carriers and service providers to build third-generation broadband networks that can profitably deliver simplified, personalized, portable subscriber services to consumers and businesses. The company's carrier-class, purpose-built platforms combine subscriber management, edge routing and policy management to enable Consumer IP. Consumer IP transforms networking from simple connectivity to intelligent delivery, offering consumers simplified control, high quality, portability, reliability and personalization over network-delivered content and 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 top-tier customer base of more than 500 carriers and service providers, including seven of the world's top ten DSL service providers. Redback's platforms terminate and manage over 20 million DSL lines worldwide.

About BT Exact BT Exact is BT's research, technology and IT operations business. It specialises in telecommunications engineering, leading-edge network design, IT system and application development and has extensive expertise in business consulting and human factors. Its knowledge helps its customers across BT Group and in selected other businesses gain maximum advantage from their investments in communications networks and IT systems, develop new capabilities and open new opportunities.

BT Exact brings together the technological expertise of BT's research laboratories and the operational experience of the teams that design and operate BT's IT systems. Backed by a team of over 6,000 technologists, it is active and influential in setting global standards. BT Exact builds on the insights and expertise developed by its research to address the demands of the next-generation internet, as well as advanced data services, information and network security, and software systems to support communications networks worldwide. BT Exact has people based worldwide - including locations across the UK and in Asia, continental Europe, and North America. For more information about BT Exact, please go to bt.com/btexact

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REDBACK and SmartEdge are trademarks registered at the U.S. Patent and Trademark Office and in other countries. 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 the business impact or value of the tests performed by BT Exact, broadband access becoming a primary means of communication, the importance of reliability and quality of service, and the demand for virtual private networks. 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.