STOCKHOLM -- Ericsson (NASDAQ: ERIC) announces that its indirect wholly-owned subsidiary, Maxwell Acquisition Corporation, has commenced its tender offer for all outstanding shares of Redback Networks Inc. (NASDAQ: RBAK) at a price of USD 25.00 net per share in cash. Ericsson and Redback previously announced that they had reached a definitive merger agreement for Ericsson to acquire Redback.

The Board of Directors of Redback has unanimously determined that the offer and the merger are advisable, fair to and in the best interests of Redback's shareholders, approved the merger agreement and the transactions contemplated thereby, including the offer, and recommended that holders of shares of Redback common stock accept the offer and tender their shares in the offer.

There is no financing condition to the tender offer. The tender offer is subject to certain conditions set forth in the Offer to Purchase referenced below, including a minimum share tender condition, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other material governmental approvals.

Ericsson AB (Nasdaq: ERIC)