June 12, 2006 09:00 ET

Redback Networks Extends Relationship With IBM to Strengthen Focus on Innovation

IBM Applications On Demand Services Enable Rapid Application Development and Deployment as Redback Focuses on Driving Growth

ARMONK, NY -- (MARKET WIRE) -- June 12, 2006 -- Redback Networks today announced that it has extended its existing relationship with IBM for the use of IBM's Applications On Demand services. Redback believes that utilizing IBM's services will allow Redback to further focus on developing innovative IP-based products and services for its service provider client base. Redback products allow its customers to significantly lower the total cost of ownership of next generation smart broadband networks.

"The IBM relationship helps to enable us to focus on investing in our goal of remaining at the leading edge of our industry by developing innovative products," said Ebrahim Abbasi, Redback senior vice president of operations, information technology and customer service. "As the company grows, scaling our operations with providers such as IBM gives us the infrastructure to service our customer base smoothly."

Under the relationship, IBM will continue to manage Redback's core business applications and IT infrastructure. In working with IBM, Redback has realized operational savings, which Redback believes will help the company to scale to customer needs over time. IBM will continue to utilize its deep industry expertise and knowledge of various third-party applications and combine these with its Applications On Demand services to enable rapid deployment and development of these tools to help Redback drive its core business.

"Redback Networks is focused on remaining the leader in its marketplace," said George Kadifa, general manager, Applications On Demand, IBM. "In assisting Redback with the technology backbone and providing our application management expertise, we are helping Redback to focus its resources on growing and operating the business," he continued.

In response to clients grappling with the high cost and complexity of managing their enterprise applications and the increasing demand for hosted applications, IBM developed the Applications On Demand platform. This has automated many components of application hosting and management which enables the service to be more reliable and cost-effective than those applications managed "in-house," especially for mid-sized businesses. Clients can purchase application and hosting services from IBM by choosing from a "menu" of service options that are modular and allow for flexibility in the service, depending on the clients' needs, as well as further development services.

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® product family combines carrier class edge routing, advanced subscriber management and high-density Ethernet aggregation functions. In conjunction with the NetOp™ 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

About IBM

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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 future growth of the company and its customer base and regarding any operational savings realized or benefits resulting from utilizing IBM's products and services, including whether utilizing IBM's services will allow Redback to further focus investment on developing products and services for its service provider client base. 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. These risks and other risks relating to Redback Network's 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, Form 10-Q, Form 8-K, Redback's Registration Statement on Form S-3 (File No. 333-114352), and amendments thereto, and the other reports filed from time to time with the SEC.

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