edback Networks Inc. (Nasdaq:RBAKQ), a leading provider of broadband networking systems, today announced that it has signed T S Telecom Ltd as a Premier Strategic Partner for value-added sales in China, further expanding its reach inside China. In addition, both companies announced a joint customer win, China Netcom Group Hebei Communications Corporation (CNC Hebei).

CNC Hebei serves the telecommunications needs of the major province of Hebei, a neighbor to Beijing and an area experiencing rapid economic and business growth. The company will use Redback's SmartEdge(R) Router family to provide high-speed, reliable network edge routing that is both flexible and intelligent and will serve as a foundation for the connectivity it offers its quickly growing customer base. In addition, CNC Hebei will utilize Redback's SMS(TM) platform of advanced subscriber management systems to offer high-speed DSL Internet access with an array of service offerings to customers in major cities of the Hebei province, including Shi Jiazhuang, the capital, as well as Tangshan, Baoding and Cangzhou.

"Redback Networks' advanced router platform allows us to provide our customers with the opportunity to significantly expand their subscriber base while improving both the performance and functionality of their systems," said James Wong, vice president and chief of staff for T S Telecom Ltd. "T S Telecom is in the process of forming a Super Alliance with major broadband equipment manufacturers to offer end-to-end broadband services in China, and we are very pleased to count Redback Networks as a major partner."
"Redback Networks meets the demanding needs of the quickly growing and rapidly changing broadband Internet access and edge router markets with platforms that offer very high performance combined with extreme flexibility, scalability and intelligence," said Shailesh Shukla, vice president of marketing, strategy and business development for Redback Networks. "We value our new relationship with T S Telecom and the chance to jointly deliver the powerful solutions needed to keep pace with China's rapid growth."

About T S Telecom Ltd.

T S Telecom Ltd. is a telecommunication system solution provider. Since 1991, T S Telecom has been providing product solutions to telephone operators in the Greater China Region. The shares of T S Telecom are traded on the TSX Venture Exchange in Canada and the shares of one of its principal subsidiary are traded on the Growth Enterprise Market of the Hong Kong Stock Exchange.

T S Telecom's products range from advanced proprietary telecom monitoring systems and network access equipment for fixed and mobile telecommunication networks, as well as gas turbine generators.

The principal operations of T S Telecom are carried out primarily through its Asian Pacific headquarters in Hong Kong and offices in major cities of Mainland China including Beijing, Shanghai, Shenzhen, Guangzhou, and Wuhan as well as investments in joint venture in Beijing, Shanghai and Harbin. Currently, T S Telecom also provides network monitoring solutions for telecom operators in New Zealand, Australia and Mexico. Further information can be obtained from its web site http://www.tstelecom.com.

About Redback Networks

Redback Networks Inc. enables carriers and service providers to build profitable next-generation broadband networks. The company's User Intelligent Networks(TM) product portfolio includes the industry-leading SMS(TM) family of subscriber management systems, and the SmartEdge(R) Router and Service Gateway platforms, as well as a comprehensive User-to-Network operating system software, and a set of network provisioning and management software.

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 and service providers.

REDBACK and SmartEdge are trademarks registered at the U.S. Patent and Trademark Office and in other countries. SMS, AOS, NetOp and User Intelligent Networks are trademarks or service marks 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Redback Networks expectations, beliefs, intentions or strategies regarding the future and including, without limitation, statements regarding the nature or benefit of winning Hebei Telecommunications as a customer or signing T S Telecom as a value-added reseller, our ability to expand our reach to customers in China and the benefits of Redback Networks products generally. All forward-looking statements included in this document are based upon information available to Redback Networks as of the date hereof, and Redback Networks assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These risks and other risks relating to Redback Networks business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-K, Form 10-Q, Forms S-4 and the other reports filed from time to time with the Securities and Exchange Commission.