CanalSatellite Expands TV-over-DSL Service with Harmonic High-Performance Digital Headend Solution.

SUNNYVALE, Calif. -- CANALSATDSL Deploys DiviCom(R) MV 100 Ultra-low Bit-Rate Encoder to Deliver Premium Programming over a Variety of Telecom Transport Networks

Harmonic Inc. (Nasdaq:HLIT) today announced that CanalSatellite, part of CANAL+ Group which is a VivendiUniversal company (NYSE:V), has deployed Harmonic's high-performance digital video headend systems to efficiently deliver premium programming for the CANALSATDSL TV-over-ADSL service. The ultra-low bit-rate capabilities of Harmonic's DiviCom(R) MV 100 encoder make it possible for CanalSatellite, France's leading satellite distribution and direct-to-home broadcaster, to transport broadcast-quality video over a variety of telecom transport networks. The headend is monitored and controlled by Harmonic's NMX Digital Service Manager(TM) to ensure the highest levels of video quality and service availability.

As bandwidth to the home increases and video compression rates are further reduced, telecom operators and other third-party service providers are introducing an array of broadcast and on-demand video-over-xDSL services. The pace of these deployments is accelerating worldwide, particularly in regions where market deregulation allows operators to provision the video, voice and data "triple play". The recently introduced CANALSATDSL service offers 80 channels of broadcast-quality television to ADSL subscribers via the IP and ATM backbone networks of their telecom partners.

"We believe there is a very significant and viable opportunity to increase the penetration of our video services using alternate types of access networks such as ADSL. Providing a comparable viewing experience, which assumes a rich bouquet of channels with equivalent or better video quality, is critical to making this strategy a success," said Christophe Hennequin, Vice President of Technology for CANAL+ Group. "We were impressed with the MPEG compression efficiency and video quality of the DiviCom MV 100 and have entrusted it with the encoding of our premium content. Harmonic also simplified the operational model by enabling a single centralized headend to serve both Ethernet/IP and ATM distribution networks. This made the business case for the service even more compelling."

In addition to DiviCom MV 100 encoders, which encode the CANALSATDSL premium channels into an MPEG-2 digital format, the video-over-ADSL headend encompasses a wide range of Harmonic systems that further increase the channel count, as well as enhance the scalability, flexibility and availability of the service. This solution includes a complete digital turnaround platform to incorporate pre-encoded content from third-party providers and rate-shaping systems to further optimize the bit-rate efficiency of that content.

"Utilizing a Harmonic headend based on the DiviCom MV 100 encoding platform, CanalSatellite is able to more cost-effectively expand its service offering and reach a new customer segment," said Dr. Yaron Simler, President of Harmonic's Convergent Systems Division. "This deployment establishes Harmonic as the leading provider of encoders to direct-to-home and ADSL pay-TV operators in France. It also confirms a leadership position for the groundbreaking DiviCom MV 100 within the global telco TV market."

CanalSatellite has also deployed a series of Harmonic network interface devices, such as the award-winning Broadcast Network Gateway(TM) (BNG) and MediaNode MN 20, to more efficiently stream the entire digital lineup generated by the headend over the IP and ATM transport networks. The service has redundant systems and communication paths, which in conjunction with NMX's ability to dynamically re-provision the infrastructure, ensure the highest levels of availability and optimum performance.

About the DiviCom(R) MV 100

The DiviCom(R) MV 100 encoding platform delivers compression efficiencies and video quality that redefine the meaning of ultra-low bit-rate encoding for MPEG-2 and advanced video compression technologies such as MPEG-4 AVC and SMPTE VC-1. With its innovative software architecture, massive processing capacity and multiple output options, the MV 100 is the most powerful and versatile encoding platform in the industry.

About CanalSatellite

CanalSatellite, a 66% Canal+ Group subsidiary, is the leader in digital pay-TV in France with 2.83 million subscriptions at the end of June 2004. CanalSatellite offers over 260 channels and services across all genres -- cinema, sport and information as well as channels for young adults and children. In 2004, 10 new channels were launched including Discovery Channel, o TV, E! Entertainment, Jetix, Cinecinema Famiz, Planete Choc and Pink TV. Visit www.canalsatdsl.com for more information.

About Harmonic Inc.

Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access.

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: the belief that there is a very significant and viable opportunity to increase the penetration of video services using alternate access networks, and CanalSatellite's ability to more cost-effectively expand its service offering.

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 area 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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