Press Release

Redback Networks Announces First Quarter 2006 Operating Results

SAN JOSE, Calif, April 26, 2006 - Redback Networks Inc. (NASDAQ:RBAK), a leading provider of broadband networking systems, today announced its first quarter results for the period ended March 31, 2006. Net revenue for the first quarter of 2006 was $57.9 million, an increase of 21 percent from the fourth quarter of 2005. Net revenue was up $23.6 million, or 69 percent, over the first quarter of 2005.

"I am excited about our results and the progress we have made in executing our business strategy during the quarter," said Kevin DeNuccio, president and chief executive officer, Redback Networks. "We are pleased with the continued success and market traction of our SmartEdge(R) family of next-generation routers. The addition of the SmartEdge 100 to our portfolio enables our customers to implement the innovative and widely deployed SmartEdge technology in even more segments of the IP network."

With the adoption of Statement of Financial Accounting Standards No. 123R (FAS 123R) as of January 1, 2006, Redback Networks is reporting stock-based compensation expense in its generally accepted accounting principles (GAAP) results for the first time.

GAAP net loss for the first quarter of 2006 was $(2.6) million or $(0.05) per share attributable to common stockholders compared to a GAAP net loss of $(7.1) million or $ (0.13) per share in the first quarter of 2005. Non-GAAP net income for the first quarter of 2006 was $4.0 million or $0.05 per share, compared to a non-GAAP net loss of $(2.9) million or $ (0.05) per share for the first quarter of 2005. Excluded from the non-GAAP results for the first quarter of 2006 were charges relating to amortization of intangible assets, stock-based compensation, amortization of the fair value of warrants issued in connection with a lease agreement, partial recovery on investment that previously had been written down, certain federal and state income taxes, and accretion of a dividend payable to the preferred stockholders.

For comparative purposes, GAAP net income excluding stock-based compensation for the first quarter of 2006 was $0.5 million or $.01 per share, compared with a GAAP net loss excluding stock-based compensation of $6.0 million or $(.11) per share for the first quarter of 2005.

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: Domestic Dial-in: 1-800-559-2403 and International Dial-in: 1-847-619-6534. 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 Domestic Dial-in: 1-877- 213-9653 and International Dial-in: (630) 652-3041 Passcode: 14285247. 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 broadband networking equipment, enables carriers and service providers to build Smart Broadband Networks that are personalized, adaptive and efficient. The Smart Broadband Network provides advanced IP -based subscriber services to consumers, businesses and wholesale customers. The company's carrier-class, scalable SmartEdge(R) product family combines carrier class edge routing, advanced subscriber management and high density Ethernet aggregation functions. In conjunction with the NetOp(TM) Element and Policy Manager platforms the SmartEdge family provides a powerful and flexible infrastructure solution that enables delivery of next-generation Broadband IP 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, service providers and ISPs. 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 which are subject to the safe harbor provisions of the Private Litigation reform Act of 1995. These statements include but are not limited to statements regarding our expected financial results, and expectations of continued growth of our SmartEdge product line and our customer base. These statements are only predictions and involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect Redback's actual future results. These risks include without limitation the following: final review of our quarterly results by our independent auditors including without limitation final analysis of our expected tax liability; growth trends in the networking industry and in various geographic regions; variations in customer demand for products and services; the timing of orders and manufacturing lead times; changes in customer order trends or customer or product mix, and other risks relating to Redback's business as set forth in the Annual Report on Form 10-K for the year ended December 31, 2005 and Redback's other most recent reports on Form 10-Q and Form 8-K, and amendments thereto, on file with the Securities and Exchange Commission (SEC), and other reports filed with the SEC from time to time. 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.

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.