Telecom Serbia Awards National Contract to Riverstone Networks Ethernet Infrastructure Designed for Business and Triple Play Services SANTA CLARA, Calif., July 5 /PRNewswire-FirstCall/ -- Riverstone Networks (RSTN.PK) today announced that Telecom Serbia, the country's incumbent service provider, has selected Riverstone to provide the Ethernet infrastructure for its new, multi-service MPLS metropolitan area network (MAN). Upon completion, the network will be able to provide a host of new voice, video and data services to Telecom Serbia's residential and business customers in three major cities -- Belgrade, Nis and Novi Sad. The first phase of the new Ethernet network will utilize Riverstone's MPLS-based RS 8000 and RS 8600 Ethernet routers to provide DSL aggregation and Internet access to both business and residential users. Later, Telecom Serbia will be able to take advantage of Riverstone's Virtual Private LAN Services (VPLS) technology, to deliver more cost effective, high-bandwidth Ethernet VPNs to its enterprise customers, complementing its current leased line, ATM and Frame Relay offerings. In doing so, the carrier will provide these customers with more choice and greater flexibility as they design and expand their own networks. Telecom Serbia chose Riverstone's routers based upon their ability to interoperate with its legacy data equipment, allowing the carrier to gradually evolve to an all Ethernet infrastructure. Riverstone's technology lets Telecom Serbia make the most of its legacy data network, maintaining its current ATM and Frame Relay revenue streams, while also paving the way for new, more cost- effective Ethernet and IP-based services including Ethernet and IP VPNs, VoIP and IPTV. "Ethernet is the key to our future," said Dragan Kovacevic, Chief Technology Officer, Telecom Serbia. "Riverstone's carrier Ethernet solutions provide the reliability and level of performance we need to better serve our customers. Using MPLS-based Ethernet, we will be able to offer a whole new world of services going forward, services that will allow both our residential and business customers to share information like never before and help build a stronger economy." Pupin Telecom DATACOM Ltd, a systems integrator for large public networks, access networks and Internet services, is installing and supporting the first phase of the project. "We are seeing a major move in Eastern and Central Europe toward Ethernet Infrastructures," said Steve Whipps, General Manager, EMEA, Riverstone Networks. "The unique breadth of Riverstone's product portfolio, its carrier- grade features and its ability to interoperate with legacy equipment provides carriers in these regions with the right form and functionality to meet their business goals, whether that be broadband aggregation, ATM-Ethernet evolution, business services or a less costly, more efficient infrastructure to support bundled voice, video and data services." Riverstone Networks, Inc. is a leading provider of carrier Ethernet infrastructure solutions for business and residential communications services. Riverstone's Ethernet router portfolio uniquely delivers the reliability that allows carriers to meet the triple play -- voice, video and data -- service requirements of their customers in a cost-effective and scalable way. Riverstone allows carriers to offer new services over existing revenue- generating networks permitting them to evolve to a next generation Ethernet infrastructure. Except for the historical information contained herein, the matters set forth in this press release, including without limitation statements regarding future deployment of communications equipment by Telecom Serbia and their plan to deliver MPLS-based services on Riverstone Ethernet equipment are forward- looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include potential delays and unforeseen technical issues in the network deployment and service delivery by Telecom Serbia, along with those risks and uncertainties detailed from time to time in Riverstone Networks' SEC reports, including the reports on Form 10-Q and Form 8-K filed on September 2, 2004. The company assumes no obligation to update or revise these forward-looking statements. Riverstone Contact: Agency Contact: Amy Huitt Tamara Morris Riverstone Networks Fleishman Hillard 1-408-878-6918 44 (0) 207 395-7037 DATASOURCE: Riverstone Networks CONTACT: Amy Huitt of Riverstone Networks, +1-408-878-6918, or ; or Tamara Morris of Fleishman Hillard, 44 (0) 207 395-7037, or , for Riverstone Networks Web site: http://www.riverstonenet.com/

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