Press Release

Chunghwa Telecom Moves to Nationwide Deployment of Next-Generation Broadband with Redback Platform Redback’s SmartEdge Service Gateway Enables Smart Broadband Networks for Video on Demand, Broadcast TV, VoIP and Internet Delivery

SAN JOSE, Calif., January 24, 2005 – Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking systems, today announced that Chunghwa Telecom, the largest primary telecommunications provider in Taiwan and one of the top ten broadband providers in the world, has begun deploying next-generation Redback SmartEdge® Service Gateway systems for a nationwide deployment of advanced broadband services in Taiwan, including integrated video, voice and data.

In August 2004, Redback Networks announced that it had been selected for Chunghwa Telecom’s next-generation broadband with an initial deployment in parts of Taipei. Based on the success of the initial rollout, Chunghwa Telecom will begin the next phase with a nationwide deployment of next-generation broadband with the SmartEdge Service Gateway platform. Chunghwa Telecom has been impressed with the reliability, the high level of scalability for video services, the flexibility and the intelligence of the SmartEdge platform.

“We are thrilled with the success at Chunghwa Telecom and the validation of our SmartEdge Service Gateway platform for delivering advanced video, voice and data in one of the largest real-world IP video deployments and the largest installation of SmartEdge Service Gateway systems,” said Kevin DeNuccio, president and chief executive officer of Redback Networks. “Chunghwa Telecom has an enormously talented broadband and entertainment team, demonstrating global leadership and vision for the future of music and video entertainment delivery.”

Besides offering broadband connectivity to a large customer base, Chunghwa Telecom offers multiple channels of broadcast television, movies from eight different providers, broadcasts of live concerts or dramatic productions, news feeds, music and learning channels. Later, the company plans to add online gaming and karaoke-on-demand, as well as other services. Chunghwa Telecom makes use of Redback’s Dynamic Subscriber Identification technology to properly identify and authenticate a variety of broadband devices, including PCs, set-top boxes, IP telephones and more. The SmartEdge Service Gateway platform also seamlessly integrates with video servers and middleware and voice gateways used throughout the Chunghwa Telecom network.

The SmartEdge Service Gateway systems enable Chunghwa Telecom to build a Smart Broadband Network that provides customized services based on each user’s requirements. They also perform intelligent video replication for broadcast feeds in the new network topology. The SmartEdge Service Gateway system combines hardware and software to provide subscriber management with dynamic policy enforcement, carrier-class IP routing and services, 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 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.

# # #

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 Network’s expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding the continuing deployment of Redback SmartEdge Service Gateway systems at Chunghwa Telecom and the continued ability of Chunghwa’s systems to provide the world’s leading and most advanced video, voice and data services with high reliability, scalability, flexibility and intelligence, whether Chunghwa is able to build a network representing the future of music and video and whether on-line gaming and karaoke-on-demand will be added by Chunghwa Telecom. 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 (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.