Artel and Harmonic Partner to Supply Solutions for Cable TV and Telecommunication Service Providers; Integrated Systems Provide Digital Video Transport over ATM Networks.

Business/Technology Editors

MARLBOROUGH, Mass. and SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 11, 2001

Artel Video Systems Inc. and Harmonic Inc. (NASDAQ:HLIT) have entered into a partnership to develop and market integrated solutions for digital television operators. Customers of Artel and Harmonic can benefit by leveraging their existing ATM (asynchronous transfer mode) networks to transport digital video streams from the headend to the subscriber.

This partnership merges complementary open standards-based systems in the areas of digital video transport, MPEG-2 compression and video processing. Cable television and telecommunication service providers can use these systems to build out scaleable network and headend infrastructures to deliver entertainment and video services to the consumer.

"We chose to partner with Artel, because they provide robust ATM networking capabilities," said Dr. Yaron Simler, president of the Convergent Systems Division of Harmonic. "Together, we can better serve our customers in existing and emerging markets."

"We think that Harmonic is the right partner, because of their digital video market expertise and their commitment to delivering technical innovation within an open systems environment," said Hal Charnley, Artel's President and CEO. "Our core MPEG and ATM network equipment and Harmonic's compression and processing technologies are very complementary. We look forward to delivering our combined innovative solutions to the evolving broadband video market."

About Artel Video Systems

Artel provides video networking systems to cable TV and telecommunications service providers who need to satisfy the consumer's ever growing appetite for broadband digital entertainment. Artel's products are transforming the world's networking infrastructures by enabling the transmission of broadcast and interactive TV over standards based multi-service networks. Artel's Cross Stream(TM) product family powered by VideoStorm(TM) technology allows for digital TV to be transported over an ATM network. Artel is headquartered in Marlborough, Massachusetts, USA, with sales and service centers worldwide. Further information about the company is available on the World Wide Web at www.artel.tv.

About Harmonic Inc.

Harmonic is a leading provider of innovative broadband solutions that deliver video, voice and data to communications providers around the world. Harmonic's technically advanced fiber optic, digital video and IP data delivery systems enable network operators to provide a range of interactive and advanced digital services that include high-speed Internet access, telephony, digital video, HDTV, video & audio streaming, and video-on-demand. Headquartered in Sunnyvale, Calif., Harmonic employs approximately 750 people and operates more than 15 R&D and sales & system integration centers globally. Harmonic's customer base includes the world's largest communications providers. Harmonic's stock is traded on the Nasdaq stock market under the symbol "HLIT." For more information, visit the company's website at www.harmonicinc.com.

This press release contains forward-looking statements, including, but not limited to, the benefits of the Harmonic/Artel partnership for customers, the ability to better serve customers in existing and emerging markets, and the delivery of combined innovative solutions for the evolving broadband video market, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In addition, actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth in documents that Harmonic files with the SEC, including reports on Form 10-K and 10-Q.

Editor's Note: Product and company names used here are trademarks or registered trademarks of their respective companies.