Telephone Carriers Made $36 Billion Selling Broadband Services on Redback Routers in 2007

Business Wire, April 15, 2008

Carriers Also Saved 58% in Capital Costs; 40% in Operations Costs

SAN JOSE, Calif. -- Redback Networks, an Ericsson company (NASDAQ:ERIC) that makes video-centric routers for 75 percent of the world's largest triple-play networks, today announced the results of an Ovum/RHK study, which found that telephone operators made up to $36 billion selling broadband services on Redback SmartEdge[R] routers in 2007.

The Ovum study also found that DSL operators saved 58 percent in capital costs and saved 40 percent in operations costs using Redback's all-IP router platform. The Ovum study also found that Redback routers consumed 61 percent less power than other broadband routers when deploying triple-play services. Redback has sold 106M broadband subscriber licenses on its SmartEdge family of routers since 2005. There are about 206M DSL subscribers today.

"Redback's all-in-one routers support a wide range of residential and business services," said Mark Seery, an Ovum/RHK telecom analyst and author of the study. "Service providers using these routers can save up to $2.3 billion over seven years."

"These results underscore the service value of all-IP infrastructures," said Georges Antoun, CEO of Redback Networks. "Carriers no longer need separate consumer, business and mobile networks to deliver separate services. Redback gives carriers flexible business platforms to deliver more services over fewer networks."

The Ovum study is based on analysis of top 50 Redback customers who bought SmartEdge routers between 2005 and 2007. The Ovum/RHK study was sponsored by Redback. To get a complete copy of the 12-page Ovum/RHK report, visit www.redback.com.

About Redback Networks

An Ericsson company since January 2007 (NASDAQ:ERIC), Redback Networks Inc. manages 63 million broadband subscribers for more than 75 percent of the top 20 telephone carriers worldwide. Redback's multi-service routing platform delivers next generation broadband services such as VoIP, IPTV, on-demand video, and online gaming. Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA. For more information, visit Redback Networks at www.redback.com.

About Ericsson

Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges. For more information, visit www.ericsson.com or www.ericsson.mobi.

Note: Redback and SmartEdge are registered trademarks of Redback Networks Inc.