Press Release

China Netcom's Liaoning Communication Corporation Selects Redback Platform to Implement New Broadband Networks SmartEdge 800 Service Gateway Systems Provide Powerful, Integrated Network of Broadband Services for Businesses and Consumers

SAN JOSE, Calif., May 26, 2004 – Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking systems, today announced that China Netcom’s Liaoning Communication Corporation, is deploying a network of Redback SmartEdge® 800 Service Gateway systems to provide a new powerful, integrated platform for business and consumer broadband access and services in the northeastern Chinese province. In the implemented configuration, Redback’s SmartEdge Service Gateway systems will simultaneously manage consumer broadband and business IP services on a single, unified “converged edge” platform.

Liaoning Communication Corporation selected Redback SmartEdge Service Gateway systems to build Smart Broadband Networks that serve both consumer and business needs simultaneously with high reliability, great flexibility, low operational costs and the ability to offer customized services. The company also wanted a platform to meet the present demands and future opportunities of a quickly growing communications infrastructure.

“Redback Networks is glad to help Liaoning Communication meet the challenges and opportunities of building critical, new infrastructure with SmartEdge Service Gateway systems,” said Simon Williams, vice president of sales and operations for Asia Pacific, Redback Networks. “China is a key growth market for broadband services, and Liaoning is a significant part of that growth. We are very pleased about being selected for this deployment”.

The Redback Service Gateway platforms integrate the B-RAS strength of Redback's industry-leading SMS™ family of subscriber management systems 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).

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.