Press Release

Redback Networks Announces Second Quarter 2005 Operating Results

SAN JOSE, Calif., July 20, 2005 — Redback Networks Inc. (NASDAQ: RBAK), a leading provider of broadband networking systems, today announced its second quarter results for the period ended June 30, 2005. Net revenue for the second quarter of 2005 was $34.6 million, an increase of approximately one percent from the first quarter of 2005. Net revenue was up $2.2 million, or seven percent, over the second quarter of 2004.

“I am pleased with the mix of strategic and financial results we achieved in the quarter,” said Kevin DeNuccio, president and chief executive officer, Redback Networks. “The continued selection of our SmartEdge® platform by the world's leading carriers gives me a great deal of confidence that we will meet or exceed our financial goals for the year.”

GAAP net loss for the second quarter of 2005 was $7.2 million or $ (0.13) per share attributable to common stockholders compared to a GAAP net loss of $10.7 million or $ (0.20) per share in the second quarter of 2004. Non-GAAP net loss for the second quarter of 2005 was $2.9 million or $ (0.05) per share, compared to a non-GAAP net loss of $2.2 million or $ (0.04) per share for the second quarter of 2004. Excluded from the non-GAAP results for the second quarter of 2005 were charges relating to amortization of intangible assets, amortization of stock-based compensation, amortization of the fair value of warrants issued in connection with a lease agreement, accretion of a dividend payable to the preferred stockholders and loss from early retirement of software assets.

See the attached table for a reconciliation of our non-GAAP results to GAAP results.

Redback Networks will discuss these quarterly results in an investor conference call today at 1:45 p.m. Pacific Time. The conference telephone number is 1-847-619-6819. A live web cast is also available from the investor relations portion of the Redback’s web site, http://ir.redback.com. A telephone replay of the conference call will be available later in the day. Replay information will be available at 1-630-652-3000, access code: 12160037. Information on these calls and web cast can also be found on the company’s web site.

About Redback Networks
Redback Networks Inc., a leading provider of next-generation IP broadband networking equipment, enables carriers and service providers to build Smart Broadband Networks that can deliver simplified, personalized and portable subscriber services to consumers and businesses. The company's carrier-class, consumer-scale SmartEdge Router and Service Gateway platforms combine subscriber management, IP edge routing and Ethernet aggregation functions. In conjunction with the NetOp™ Element and Policy Manager platforms they provide a powerful, flexible infrastructure for managing both residential and business users and deploying a variety of 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. NetOp is a trademark of Redback Networks Inc.

Note Regarding Forward Looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect Redback’s actual future results. All forward-looking statements included in this document are based upon information available as of the date hereof, and Redback assumes no obligation to update these statements. 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 and Form 8-K, and amendments thereto, and the other reports filed from time to time with the SEC.

Non-GAAP Disclosure
To supplement our consolidated financial statements presented in accordance with GAAP, we use non-GAAP financial results, which are adjusted from results based on GAAP to exclude certain items. These non-GAAP results are provided to enhance the user’s overall understanding of our current financial performance and our prospects in the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding certain items that we believe are not indicative of our core operating results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with United States GAAP.