Press Release

Redback Networks, An Ericsson Company, Signs One of Silicon Valley’s Largest Leases in 2007

The Router Company Doubles Its Campus Size with 320,000 Square Foot Lease in San Jose

San Jose, Calif. – December 27, 2007 – Redback Networks, an Ericsson company, today announced a real estate agreement to double its campus size in San Jose. The Redback and Ericsson deal is one of the top three lease agreements signed in Silicon Valley in 2007.  

The new Redback-Ericsson campus will be the R&D center for most of Ericsson’s fixed and mobile Internet infrastructure.  Hundreds of new jobs are expected to be added and up to $350 million will be invested in new product development in San Jose.  Redback’s parent company, Ericsson, is the largest telecommunications supplier in the world with annual revenue of more than $26 billion. Redback makes multi-service edge routers for 75 percent of the world’s largest telephone companies. Redback routers deliver broadband, phone and TV services for more than 63 million subscribers worldwide.

Redback will occupy a total of four office buildings and 318,000 square feet at Corporate Technology Center in San Jose, California. Under the new lease, Redback and Ericsson will occupy 100 Headquarters Way, 200 Holger Way, 250 Holger Way and 300 Holger Way. The four buildings are located off Highway 237, near the N. First St. exit. The new buildings will primarily house employees from Redback, and a number of employees from Ericsson’s other acquisitions in Silicon Valley. The other Ericsson companies include Entrisphere, a fiber access gear maker, and Tandberg TV, which makes IPTV equipment.  

Redback and Ericsson leased the additional space to support their plans to recruit hundreds of additional engineering and sales people. Both companies are at the center of a large broadband upgrade market for video and mobility, with an addressable router market of $9.8 billion by 2011. In the last 18 months, Redback has doubled its workforce to more than 1,000 people; about 500 employees are based in San Jose. The expanded campus has capacity to support up to 1,800 employees.  

“Redback is at the center of one of the largest network upgrades in ten years,” said Mimi Gigoux, senior vice president of human resources at Redback Networks.  “Video and mobility are reshaping network futures. Redback and Ericsson are uniquely positioned to drive these network upgrades with a large R&D investment in Silicon Valley.”  

“We are delighted to accommodate Redback’s growth within this campus while also providing additional adjacent workplace solutions for Ericsson’s other companies here in Silicon Valley,” said John Moe, Market Managing Director for the combined CarrAmerica and Equity Office portfolios in Northern California. “Our Northern California portfolio offers an abundance of creative campus and build-to-suit opportunities for the growing needs of our tenants.”

Senior Vice President Jeffrey A. Rodgers and Vice President Jeffrey A. Ramirez of Cornish & Carey’s Santa Clara office represented Redback. The Staubuch Company represented Ericsson. CarrAmerica represented itself in this transaction.  

About Redback Networks

An Ericsson company since January 2007 (NASDAQ: ERIC), Redback Networks manages 63+ million broadband access and triple-play subscribers for 75+ percent of the world’s largest telephone companies. Redback’s multi-service routing platform delivers next generation services such as broadband access, VoIP, IPTV, video-on-demand, and on-line gaming.  Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA.   For more information, visit www.redback.com.

Doug Wills (Media & Analysts)
Redback Networks
Office: 408-750-5038
Cell: 650-703-5997
dwills@redback.com

About Ericsson

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at http://www.ericsson.com

FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Media Relations
Phone: +46 8 719 6992
E-mail: press.relations@ericsson.com

About Cornish & Carey Commercial

A dominant regional real estate force since 1935, Cornish & Carey Commercial/ONCOR International provides a full range of services for both property owners and companies occupying buildings throughout Northern California. With more than 200 agents in ten strategically located offices - Santa Clara, Palo Alto, San Mateo, San Francisco, Walnut Creek, Emeryville, Pleasanton, Roseville, Sacramento and Hayward - Cornish & Carey Commercial is one of the largest privately held commercial real estate service providers in the world. Our services have expanded throughout the United States and to major markets internationally in conjunction with the company's affiliation with ONCOR International, an organization of leading brokerage firms in North America, Europe and Latin America. For more information, visit Cornish & Carey Commercial online at: http://www.ccarey.com/

For more information, contact:

Jeffrey A. Rodgers
Cornish & Carey Commercial
408.987.4143
jrodgers@ccarey.com

Jeffrey A. Ramirez
Cornish & Carey Commercial
408.982.8423
jramirez@ccarey.com

Tara Rust Samuels
TRS Communications
408.373.2577
pr@ccarey.com