Redback Wins Taiwan Order

TAIPEI, Taiwan -- Redback Networks Inc. (Nasdaq:RBAK - news), a leading provider of solutions for next-generation metro and broadband networks, announced today that Chinese Petroleum Corporation (CPC), Taiwan's largest state-owned enterprise, will set up an island-wide SDH (Synchronous Digital Hierarchy) optical network with the Redback® SmartEdge(TM) 800 multi-service optical platform product. The multi-million dollar order marks Redback's largest SmartEdge sale to date in Asia. CPC Telecom Business Division CEO Simon K.T. Wang said, "With the impending privatization of CPC this year, we will face our biggest challenge for growth in telecom's history. By entering the telecom market and building our nationwide optical backbone, we are passing the first milestone in our mission to extend CPC's growth beyond the traditional model. We will invest NT$0.52 billion this year to increase the capacity of our fiber-optic network, and upgrade from PDH to SDH." CPC set up a telecom Division earlier last year to spearhead its foray into the burgeoning telecom market. The new optical network will also allow CPC to introduce innovative 3G services with the addition of wireless equipment in the future. Redback Networks Inc.