RBAK Redback Networks

Redback Networks Inc. today announced that, in accordance with Nasdaq Marketplace Rule 4350, on September 29, 2006, 30 newly hired employees who are non-officers were granted inducement stock options in a total amount of 121,500 shares of common stock. Pursuant to Nasdaq Marketplace Rule 4350 (i)(1)(A)(iv), the options were granted under Redback�s 2004 Employment Inducement Plan, which Redback�s board of directors adopted to facilitate the granting of stock options as an inducement to new employees to join the Company. In accordance with NASDAQ rules, these grants of stock options were made under a stock option plan without stockholder approval. NASDAQ rules require a public announcement of option grants to be made under this type of plan. Each option has been classified as a non-qualified stock option, has an exercise price equal to the fair market value on the grant date, has a ten-year term, and vests 25% on the one year anniversary of the option grant date with an additional 2.0833% vested each month thereafter, with 100% being vested and exercisable four years from the option grant date. About Redback Networks Redback Networks Inc. manages 40 million broadband connections for 15 of the top 20 carriers worldwide. Redback�s multi-service routing platform delivers next generation broadband services such as VoIP, IPTV, On-Demand Video and on-line gaming. Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA. In 2006, Redback marks its 10 year anniversary, celebrating ten years of broadband innovation. 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. Redback Networks Inc. today announced that, in accordance with Nasdaq Marketplace Rule 4350, on September 29, 2006, 30 newly hired employees who are non-officers were granted inducement stock options in a total amount of 121,500 shares of common stock. Pursuant to Nasdaq Marketplace Rule 4350 (i)(1)(A)(iv), the options were granted under Redback's 2004 Employment Inducement Plan, which Redback's board of directors adopted to facilitate the granting of stock options as an inducement to new employees to join the Company. In accordance with NASDAQ rules, these grants of stock options were made under a stock option plan without stockholder approval. NASDAQ rules require a public announcement of option grants to be made under this type of plan. Each option has been classified as a non-qualified stock option, has an exercise price equal to the fair market value on the grant date, has a ten-year term, and vests 25% on the one year anniversary of the option grant date with an additional 2.0833% vested each month thereafter, with 100% being vested and exercisable four years from the option grant date. About Redback Networks Redback Networks Inc. manages 40 million broadband connections for 15 of the top 20 carriers worldwide. Redback's multi-service routing platform delivers next generation broadband services such as VoIP, IPTV, On-Demand Video and on-line gaming. Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA. In 2006, Redback marks its 10 year anniversary, celebrating ten years of broadband innovation. 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.