Ericsson completes cash tender offer for Redback Networks

Ericsson (NASDAQ:ERIC) today announced the completion of the tender offer by its indirect wholly-owned subsidiary, Maxwell Acquisition Corporation, for all outstanding shares of Redback Networks Inc. (NASDAQ:RBAK) at a price of USD 25.00 per share in cash.

The tender offer expired at midnight, eastern US time, on Tuesday, January 23, 2007.

The depositary for the tender offer has advised Ericsson that, as of the expiration of the tender offer, approximately 71,449,547 shares (including 6,947,508 shares that were tendered pursuant to guaranteed delivery procedures) were validly tendered and not withdrawn in the tender offer, representing in excess of 90 percent of Redback's issued and outstanding shares. All validly tendered shares have been accepted for payment in accordance with the terms of the tender offer.

Ericsson intends to complete the acquisition of Redback through a short-form merger as soon as practicable. If necessary, Ericsson intends to exercise its option under the merger agreement to purchase newly issued Redback shares in order to ensure ownership of at least 90 percent of the outstanding Redback shares to complete the short-form merger. In the short-form merger, all outstanding Redback shares not purchased in the tender offer will be converted into the right to receive USD 25.00 per share in cash.