'yes' TV Selects Harmonic's Rhozet Transcoding Technology for Internet Video-on-Demand Service in Israel.

AMSTERDAM, Netherlands -- Harmonic Inc. (NASDAQ:HLIT) today announced that its Rhozet[R] Carbon Coder[TM] video transcoding solution has been selected by 'yes' TV for a new Internet-based broadband video-on-demand (VOD) service in Israel. 'yes' TV also utilizes Harmonic's high performance DiviCom[R] high definition (HD) and standard definition (SD) encoders for its broadcast DTH television service. 'yes' TV is the leading Israeli direct-to-home (DTH) satellite broadcaster, serving more than 500,000 customers nationwide. The new Internet VOD service is being delivered in partnership with Walla Communications, a leading Israeli portal.

Carbon Coder rapidly transcodes 'yes' TV's video content, including a new Web-only miniseries and other locally generated broadcast television content, to Windows Media format, while preserving video quality and maintaining audio synchronization.

"Carbon Coder's excellent video quality, quick rendering times and the company's solid customer support were the deciding factors in the selection of the Rhozet software for our new broadband service," said Itzhak Elyakim, VP Engineering and CTO, 'yes' TV. "Harmonic's Rhozet transcoding solution enables us to easily create and deliver top-notch content in a timely manner to our growing audience."

"We're delighted that Rhozet transcoding technology is playing an important role in 'yes' TV's new and innovative broadband video service," said David Trescot, Vice President of the Rhozet Business Unit at Harmonic Inc. "We've focused our development to meet the demanding quality and performance needs of our customers producing digital video content to serve the rapidly converging worlds of Web, satellite and mobile TV."

Harmonic's Rhozet Carbon Coder is a universal transcoding application that facilitates the transfer of media between a variety of platforms, including acquisition, editing, playout, archive, the Internet and mobile devices. Carbon Coder can run as a stand-alone application or as part of a multi-node, fully-automated rendering farm. Carbon Coder provides high-performance, scalable and cost-effective transcoding for a broad range of business environments, from specialized studios to enterprise-scale installations.

About 'yes'

DBS (Digital Broadcasting Satellite) was founded in 1998, as 'yes', who won the government of Israel's license to operate digital multi-channel broadcasting over satellite. The company's objective is to be the leading multi-channel digital platform in Israel. 'yes' offers a wide range of content and variety of channels, which are purchased according to each individual subscriber's choice, as tiered packages.

About Harmonic Inc.

Harmonic Inc. is a leading provider of versatile and high performance video solutions that enable service providers to efficiently deliver the next generation of broadcast and on-demand services including high definition, video-on-demand, network personal video recording and time-shifted TV. Cable, satellite, broadcast and telecom service providers can increase revenues and lower operational expenditures by using Harmonic's digital video, broadband optical access and software solutions to offer consumers the compelling and personalized viewing experience that is driving the business models of the future.

Rhozet, a business unit of Harmonic Inc., is dedicated to providing accelerated high-quality media transcoding solutions. The Rhozet solutions are offered in both off-the-shelf and customized software configurations for the production and content delivery markets. For more information about Rhozet technology please visit www.rhozet.com.

Harmonic (NASDAQ:HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide. The Company's customers, including many of the world's largest communications providers, deliver services in virtually every country. Visit www.harmonicinc.com for more information.

This press release contains forward-looking statements within the meaning of Section 27(A) of the Securities Act of 1933 and Section 21(E) of the Securities Exchange Act of 1934, including statements related to: yes TV's growing audience and the rapidly converging worlds of Web, satellite and mobile TV.

Our expectations and beliefs regarding these matters may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission including its recent Reports filed on Form 10-K and Form 10-Q. Harmonic does not undertake to update any forward-looking statements.

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