Cablevision Selects Harmonic's NSG to Support Video-On-Demand Rollout; NSG to Support Major U.S. Launch of VOD.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 23, 2001

Harmonic Inc. (Nasdaq:HLIT) today announced that Cablevision Systems Corporation (NYSE:CVC) has selected the Harmonic Narrowcast Services Gateway (NSG) 8100 to support Cablevision's rollout of video-on-demand (VOD) throughout the New York metropolitan area. The Cablevision launch, scheduled later this year, will bring world-class interactive services to the United States' largest cable system cluster. By significantly reducing the cost-per-stream for delivering VOD, the NSG provides Cablevision a key enabling technology required for a cost-effective and future-proof deployment.

"Cablevision has a longstanding relationship with Harmonic," said Wilt Hildenbrand, Executive Vice President, Engineering and Technology, Cablevision Systems Corporation. "When evaluating options for our VOD deployment, we were looking for a solution that would lessen the cost of VOD while providing the highest quality. We were also looking for a scalable platform, one that could enable future services. The NSG met our criteria."

"Cablevision is one of the most forward-looking operators in our industry, and is committed to the deployment of advanced digital services," said Anthony Ley, Harmonic's Chairman, President and CEO. "Cablevision's launch represents a turning point for the deployment of VOD, and we are pleased to be working with them as they bring advanced digital services to their customers."

NSG 8100

The NSG 8100 is an innovative fully-integrated server gateway and a key component of a complete VOD transport solution. The NSG supports eight QAM channels in a single rack unit, making it the most compact edge QAM device in the industry. Its compact size and high bandwidth capacity significantly reduce the cost and complexity of deploying VOD. By driving down the cost per stream for delivering VOD, the NSG paves the way for wide-scale commercial deployment.

Standard features of the NSG include: processing of streams from multiple high capacity servers, multiplexing, program filtering, routing and multicasting, DVB scrambling, modulation and upconversion of eight QAM channels. The NSG supports ASI and IP over Gigabit Ethernet input interfaces. The IP interfaces optimize bandwidth utilization by making it possible for operators to multiplex sources from multiple media servers in both centralized and distributed VOD architectures.

About Cablevision

Cablevision Systems Corporation is one of the nation's leading entertainment and telecommunications companies. Its cable television operations serve more than 3 million households located primarily in the New York metropolitan area. The company's advanced telecommunications offerings include its Lightpath integrated business communications services and its Optimum-branded high-speed Internet service. Cablevision's Rainbow Media Holdings, Inc. subsidiary operates programming businesses including American Movie Classics, Bravo, FOX Sports Net and other national and regional services. Cablevision also owns a controlling interest and operates Madison Square Garden and its sports teams including the Knicks and Rangers. The company operates New York's famed Radio City Music Hall and owns and operates THE WIZ consumer electronics stores and Clearview Cinemas in the New York metropolitan area.

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 a dozen 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, Cablevision's scheduled launch of interactive services, 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.

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