RBAK Redback Networks

Redback Networks Inc. (Nasdaq:RBAK), a leading provider of next-generation broadband networking systems, has become the number two market leader in broadband internet service, passing Juniper Networks for the first time, according to a new report by Infonetics, a major industry research firm in Campbell, CA. In its second quarter report for 2006, Infonetics reported that Redback's market share increased nine percentage points to 20 percent, rising to the second spot in the overall market. In the same report, Juniper's market share dropped 18 points to 19 percent overall, dropping to the third spot. Cisco Systems' market share dropped nine points to 36 percent, the top spot in the Infonetics report. The report compared results from second quarter of 2006 to the second quarter of 2005. For more details on this report, see www.infonetics.com. "One of the three pillars for 'triple-play' services is broadband internet delivery. Redback is rising in the market place because it sees a future of fewer networks and more services, delivering a combination of high-speed Internet, VoIP and video-on-demand services," said Michael Howard, principal analyst and co-founder of Infonetics Research, a major research firm in Campbell, CA. "We believe this market study is an important validation for Redback's gains in the broader market category of multi-service routing," said Marco Wanders, chief marketing officer at Redback Networks. "On a worldwide basis, broadband carriers are moving rapidly toward a single integrated IP network for high-speed data, voice and video services. Carriers want to reduce the number of networks they are building and simplify their operations. Network economics no longer support new overlay networks for IP-based, triple-play services. Redback's SmartEdge(R) multi-service edge router helps carriers deliver multiple services over a single, integrated IP network." Wanders said multi-service routing will eventually overtake other categories of single-service routing. "We see a future of fewer networks and more broadband services," said Wanders. "Over time, we believe that networks will get smarter, and all communications services will be managed in harmony under a single IP infrastructure." Eleven of the top 20 DSL carriers worldwide deploy Redback's SmartEdge(R) multi-service edge router to deliver various broadband services to tens of millions of business and residential customers worldwide. These customers include British Telecom, Belgacom, Bell South, China Telecom, China Netcom, Chungwha 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 and On-Demand Video. 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. Note Regarding Forward Looking Statements 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. These statements include but are not limited to statements regarding our expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding Redback Networks' position as the number two market leader in broadband internet service delivery, the belief that broadband carriers are moving toward a single integrated IP network and that all communications services will be managed under a single IP infrastructure, the ability of Redback's products to help carriers deliver such services, and the belief that multi-service routing will overtake other categories of single-service routing. All forward-looking statements included in this document are based upon information available to us as of the date hereof, and we assume 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 our 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 for the fiscal year ended December 31, 2005, Form 10-Q for the quarter ended June 30, 2006, Forms 8-K, and amendments thereto, and the other reports filed from time to time with the SEC.