RBAK Redback Networks

Redback Networks Inc. (NASDAQ:RBAK), a leading provider of next-generation broadband networking systems, today announced that it has filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the fiscal year ended December 31, 2005 ("Form 10-K") and has successfully concluded its assessment of the Company's internal control over financial reporting as of December 31, 2005 in accordance with Section 404 of the Sarbanes-Oxley Act of 2002. As previously stated in the Form 12b-25 filed by Redback with the SEC on March 16, 2006, the Company has recorded a correction to the results of operations for the quarter ended December 31, 2005 previously disclosed in its press release dated January 26, 2006. The correction reduces stock compensation expense on a GAAP basis by a total of $0.4 million for the fourth quarter of 2005. As a result, GAAP net income for the fourth quarter of 2005 increased to approximately $0.7 million from $0.3 million and GAAP net loss for the year ended December 31, 2005 was reduced to approximately $22.0 million from approximately $22.4 million. The correction had no impact on the GAAP net income per share for the fourth quarter of 2005, but reduced GAAP net loss per share for the year ended December 31, 2005 to $0.40 from $0.41. These results are reflected in the Company's Form 10-K on file today with the SEC. Please refer to the Form 10-K for further detailed information. 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 enables advanced IP based subscriber services to consumers, businesses and wholesale customers. The company's carrier-class, consumer-scale SmartEdge(R) product family combines advanced subscriber management, carrier-class IP edge routing and highly scalable Ethernet aggregation functions. In conjunction with the NetOp(TM) 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 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.