Redback Completes Carrier Ethernet Interoperability Tests; Opens Door to Carrier Ethernet Market Worth up to $1.5 Billion by 2008

Redback Networks Inc. (NASDAQ:RBAK), a leading provider of
next-generation broadband networking systems, today announced it has
completed a successful round of interoperability tests, measuring the
SmartEdge(R) family of multiservice edge routers as a new platform for
Ethernet aggregation services as well as IP/MPLS edge routing.

The tests are significant for Redback because the carrier Ethernet
market in total represents a new growth market up to $1.5 billion by
2008, according to two major research firms, the Yankee Group and
Infonetics Research. The successful interoperability tests also
demonstrate that Redback's SmartEdge family of multiservice routers
can be a powerful platform to deliver data, voice and video services
over a carrier Ethernet infrastructure in a multivendor environment.
In a market environment where industry consolidation is driving
network consolidation, most experts believe carriers will reduce or
eliminate the number of single service networks over time.
Multiservice networks have emerged as the primary choice for
broadband, phone and TV services.

"Interoperability is key to carrier Ethernet services," said
Carsten Rossenhoevel, managing director of the internationally
recognized test center EANTC. "Almost all service provider triple play
and business Ethernet infrastructures are heterogeneous today."

"The emerging carrier Ethernet market is a great opportunity to
accelerate triple play deployments on a worldwide basis," said Marco
Wanders, chief marketing officer, Redback Networks. "In the future,
carriers will use fewer networks to deliver more services over a next
generation broadband infrastructure. These EANTC tests help validate
that Redback is at the forefront of IP and Ethernet networking
innovations, offering advanced Ethernet functionality and multivendor
compatibility and helping customers differentiate themselves in an
increasingly competitive IP services market."

The recent interoperability test event at the carrier Ethernet
World Congress ensures that the Metro Ethernet Forum (MEF)
specifications are implemented consistently worldwide for all
participating vendors. Service providers will be more confident to
deploy carrier Ethernet once they can trust that multiple components
will actually work together in realistic environments.

Redback joined 16 other network hardware companies in the
interoperability tests. The tests were conducted over eight days and
were managed by the European Advanced Networking Test Center (EANTC).
Redback products were tested as an Ethernet aggregation and services
router and as a multiservice edge router. Among the services tested
for router interoperability was IPTV. Redback is at the center of some
of the largest IPTV deployments in the China, Korea and U.S. markets
today.

Eleven of the top 20 DSL carriers worldwide deploy Redback's
SmartEdge multiservice edge routers to deliver various broadband
services to tens of millions of business and residential customers
worldwide. These customers include British Telecom, Belgacom,
BellSouth, China Telecom, China Netcom, Chunghwa Telecom, France
Telecom and Turk Telecom, among others.

About Redback Networks

Redback Networks Inc. manages 40 million broadband connections for
15 of the top 20 carriers worldwide. Redback's multi-service routing
platform delivers next generation broadband services such as VoIP,
IPTV, On-Demand Video and on-line gaming. Redback Networks has more
than 500 carrier customers worldwide and is based in San Jose, CA. In
2006, Redback marks its 10 year anniversary, celebrating ten years of
broadband innovation. 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 Networks' expectations,
beliefs, intentions or strategies regarding the future and including,
without limitation, statements regarding the expected that the carrier
Ethernet market in total represents a new growth market as large as
$1.5 billion by 2008, the expected ability of Redback products to be a
powerful platform to deliver data, voice and video services over a
carrier Ethernet infrastructure in a multi-vendor environment, and the
expectation that carriers will reduce or eliminate the number of
single service networks over time. 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,
including without limitation risks associated with our outsourcing
vendors and the systems we use to forecast our inventory needs. These
risks and other risks relating to Redback Networks' business are set
forth in the documents filed by Redback Networks with the Securities
and Exchange Commission (SEC), specifically the Annual Report on Form
10-K for the period ended March 31, 2006, the Quarterly Report on Form
10-Q for the period ended June 30, 2006, and other recent reports on
Form 8-K, and amendments thereto, and the other reports filed from
time to time with the SEC.