<PAGE>
EXHIBIT 99.1
REDBACK NETWORKS COMPLETES $636 MILLION ACQUISITION OF ABATIS SYSTEMS
SUNNYVALE, Calif., Oct. 3, 2000 - SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 3,
2000--Redback Networks Inc. (Nasdaq:RBAK - news), a leading provider of advanced
networking solutions, today announced it has completed its acquisition of Abatis
Systems of Vancouver, Canada, a transaction valued at U.S. $636 million. Abatis
Systems is now a subsidiary of Redback Networks Inc. and called Redback Networks
Systems Canada, Inc. John Seminerio, the former chief executive officer of
Abatis Systems, is general manager of the new subsidiary and a vice president of
Redback Networks and will report to Vivek Ragavan, president and chief executive
officer of Redback Networks.
"Service providers are challenged to offer value-added services, such as
on-demand video, because today's networks were originally designed for basic
connectivity, not the complex operations that services require." Ragavan said.
"This acquisition marries intelligent control software and network-aware
architecture, removing the limitations to dynamic service provisioning."
The integration of Abatis Systems' service creation capabilities with the
Redback Subscriber Management Systems(TM) (SMS) and the Redback SmartEdge(TM)
(SE) solutions provides significant operational cost savings and revenue
generating benefits for carriers and service providers. The IP service revenue
opportunities available through Redback Networks' expanded solution set will
span all major networking technologies within the New Access Network, including
DSL, cable, wireless, SONET, SDH, leased lines, frame relay and ATM.
With the integrated Redback solution, providers can publish a service, such as
outsourced enterprise applications, a customer can subscribe to it, and the
network can then carry out the necessary operations to automatically provide the
service in real time.
TRANSACTION TERMS
Under the terms of the agreement Redback Networks issued approximately 5.2
million Redback shares in exchange for all outstanding shares, options and
warrants of Abatis Systems. Based on the closing price of Redback Networks
shares on July 28, the transaction is valued at U.S. $636 million. Canadian
residents who elected to do so, will receive shares in a Redback Canadian
subsidiary that will be exchangeable, on a share-for-share basis, for Redback
common stock.
<PAGE>
ABOUT REDBACK NETWORKS, INC.
Founded in 1996 and headquartered in Sunnyvale, Calif., Redback Networks Inc.,
is a leading provider of advanced networking solutions that enable carriers,
cable operators, and service providers to rapidly deploy broadband access and
services. The company's market-leading Subscriber Management Systems(TM) (SMS),
connect and manage large numbers of subscribers using any of the major broadband
access technologies such as Digital Subscriber Line, cable, and wireless. To
deliver integrated transport solutions for metropolitan optical networks, the
Redback(R) SmartEdge(TM) (SE) multi-service platforms leverage powerful advances
in application-specific integrated circuit, IP, and optical technology. With
this product portfolio, Redback Networks is the first equipment supplier focused
exclusively on developing integrated solutions for the New Access Network.
# # #
Redback is a U.S. Registered Trademark; Subscriber Management System and
SmartEdge are Trademarks of Redback Networks Inc. Other trademarks, service
marks, and trade names belong to 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. Forward-looking statements include statements regarding interoperability
of Redback and Abatis products, demand for these products and future sales of
these products to customers, advantages to customers, and new corporate
structures. . 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 and
other risks relating to Redback Networks' business are set forth in the
documents filed by Redback Networks with the Securities and Exchange
