Press Release: November 27, 2000

WR Hambrecht + Co Initiates Coverage of Redback Networks (RBAK) with a Buy Rating and a Price Target of $120

Company straddles two of the most explosive growth opportunities in communications infrastructure: broadband access and optical networking

San Francisco, CA, November 27, 2000—WR Hambrecht + Co today initiated research coverage on Redback Networks (RBAK) with a buy rating and a price target of $120 based on Redback’s status as a leading supplier of service-enabling access and transport infrastructure at the network edge. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“We believe the Company’s focus on enabling new services and new subscribers for its carrier and service provider customers will continue to make Redback an increasingly strategic vendor in the industry,” said Tim Savageaux, eNetwork Infrastructure analyst at WR Hambrecht + Co. “Redback offers an increasingly wide range of service enabling solutions and this focus should shield the Company from any high level capital spending concerns.”

The WRH+Co report cites several key factors in support of its positive outlook for the company: a significant addressable market opportunity in excess of $10 billion annually by 2004; the Company’s clear leadership in the broadband subscriber management market and number two position in the next generation SONET market; Redback’s platform intelligence and strong technology position in the service provisioning, packet processing and optical transport areas; and a strong management team.

“All of the above plus an aggressive acquisition strategy indicate Redback’s increasing category leadership at the network edge,” said Savageaux.

Savageaux projects total revenues will be $268 million in 2000 and $675 million in 2001, up from $64 million in 1999.