Austar Selects Harmonic Data Systems' CyberStream to Add High Speed Internet to Its Satellite and MMDS Networks.

Business Editors/High-Tech Writers

LONDON--(BUSINESS WIRE)--May 15, 2000

Harmonic Data Systems Ltd. (HDS), a subsidiary of Harmonic Inc. (Nasdaq:HLIT), today announced that Austar United Communications, Australia's second largest pay-TV provider, has chosen the CyberStream end-to-end system from HDS as the platform for its high-speed Internet service. The multi-million dollar order includes CyberStream Data Gateway transmitters, which are being installed at up to 60 of Austar's satellite and MMDS headends on the Eastern Seaboard. The purchase also includes a significant quantity of CyberStream receiver devices.

By implementing the HDS CyberStream system Austar is augmenting the services it can offer to its subscribers over both the wireless cable (MMDS) and the satellite infrastructure it has deployed throughout Australia. Austar's network is made up of a large number of wireless cable systems in larger regional areas and selected Australian capital city centers, as well as satellite television installations in more remote regions.

Austar is partnering with Chello Broadband, one of the world's leading broadband Internet companies, to supply Internet, email and news push content over its networks using the HDS CyberStream solution. Distributing broadband content over Austar's wireless MMDS and satellite network is a first for Chello, which previously had delivered its services over cable only.

"Enhancing our offerings to our customers, those in the cities as well as in more remote areas of Australia, is absolutely key to our growth," commented Allan Trenchuk, Austar's Chief Engineer. "Austar chose HDS after an exhaustive examination of options for data broadcasting in a point-to-multipoint environment. HDS offered the best end-to-end solution with both headend equipment and customer premises equipment."

"We are pleased to be associated with Austar and Chello as they continue to improve the services they can offer to subscribers," said Stefan Meier, HDS Director of Sales. "The CyberStream product has been designed to support fast Internet access as well as a range of other data distribution services, and these can now be deployed over cable, wireless cable and satellite networks."

In addition to this deployment, CyberStream is being used worldwide in a variety of applications, such as providing individual subscribers with high-speed Internet access and ISPs with direct satellite links to the U.S. Internet backbone. Other CyberStream users include Europe Online's "Internet in the Sky" over Astra, InfoSat, Eutelsat, PanAmSat, CNN, InterPacket, IP Planet and Tele Danmark. The CyberStream end-to-end system has been approved by Eutelsat as a fully compliant DVB MPE solution (see www.harmonicdata.com for further information).

About Austar United Communications

Through its three operating subsidiaries, Austar United (Australian Stock Exchange "AUN") is one of the largest and fastest growing broadband communications companies serving the Australian and New Zealand markets. AUSTAR Entertainment is the second largest pay TV operator in Australia, and the largest providing, principally, digital DTH services, with over 380,000 subscribers. XYZ Entertainment (a 50/50 joint venture with Foxtel) is a significant program provider in the Australian market and owns and/or distributes Nickelodeon, Discovery, Channel (V), Arena and The Lifestyle Channel to over 930,000 subscribers.

Telstra Saturn Limited (a 50/50 joint venture with Telstra) operates the first and largest broadband telecommunications company in New Zealand, offering a full mix of cable television, telephony and Internet services. Austar is one of the first companies in Australasia to offer broadband Internet access and was the first to launch interactive television. Austar United is approximately 72% owned by UnitedGlobalCom.

About Harmonic Data Systems

Harmonic Data Systems Ltd. is a leading provider of fast Internet and Push systems for satellite, cable and wireless cable networks. Formerly known as New Media Communication, the company was founded in 1995 to offer high-speed data-over-broadband solutions, originally developed in alliance with IBM. A wholly-owned subsidiary of Harmonic Inc., the company operates from its headquarters in Tel-Aviv and offices in the United States. For more information, please call [phone] or check the company's website at www.harmonicdata.com.

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 950 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, check the company's website at www.harmonicinc.com.

This press release contains forward-looking statements, including, but not limited to, installation of CyberStream transmitters, Austar's augmented service offerings, Austar's partnership with Chello, and the key factors to the growth of Austar, 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, specifically 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.