SAN JOSE, Calif., and TAIPEI -- Redback Networks Inc. (NASDAQ: RBAK), a leading provider of next-generation broadband networking equipment, announced today that Chunghwa Telecom, Taiwan's premier telecommunications service provider has deployed the Redback SMS 10000 platform of subscriber management systems in its network. The new deployment will enable Chunghwa's business customers to easily build Internet Protocol (IP) virtual private networks (VPNs) using digital subscriber line (DSL) technology. Chunghwa Telecom's broadband service is the largest in Taiwan, representing over 1.3 million subscribers and is expected to reach two million by the end of 2002. Chunghwa Telecom has used Redback's SMS technology to provide broadband service to its customers since the debut of its ADSL offering in 1999. In this deployment, Chunghwa Telecom's Data Communication Business Group is leveraging the multiple context feature of the SMS 10000 to partition the platform into several contexts and offer VPN services to business users easily and quickly. Chunghwa Telecom will offer businesses IP VPN services over DSL technology in combination with the existing leased line and frame relay services, providing an alternative for companies to construct a virtual network that connects its branch offices throughout Taiwan. "The SMS 10000, deployed in some of the world's most traffic-intensive networks to deliver applications utilizing L2TP and PTA capabilities, represents the next-generation of subscriber management technology that was purpose-built for user-awareness and management," said Georges Antoun, senior vice president of marketing and product management at Redback. "Further, the SMS platform's unique multiple context feature that allows service providers to create secure domains to deliver wholesale services to retail providers or business customers cost-effectively and easily, will enable Chunghwa Telecom to seamlessly introduce additional innovative IP services to its customers, creating multiple revenue streams and also increasing network efficiencies." Chunghwa Telecom Co. Ltd. Redback Networks Inc.