Casema and TV Cabo Select Harmonic's Optical Transmission Solutions for Major HFC Infrastructure Upgrades.

Business Editors and Technology Writers

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Sept. 8, 2000

-- Harmonic's METROLink Dense Wave Division Multiplexing (DWDM)

Platform to Enable Advanced Interactive Services Throughout Europe --

Harmonic Inc. (Nasdaq:HLIT) today announced that Casema (The Netherlands) and TV Cabo (Portugal) have chosen Harmonic's METROLink DWDM system as part of their respective efforts to enhance the forward and return path capacity of their hybrid fiber coax (HFC) networks.

Harmonic's METROLink optical transmission system provides Casema and TV Cabo a flexible, scalable, and cost-effective platform and increases the transport capacity of their networks. These benefits will become increasingly more important as Casema and TV Cabo deliver advanced interactive services, including high-speed Internet access, telephony, and video-on-demand (VOD).

Casema Network Upgrade

Casema, in the process of completing an upgrade of both the forward and return path of their HFC network, selected Harmonic's METROLink DWDM system to support their third quarter rollout of telephony and high-speed Internet access. Casema's network upgrade is expected to be completed in Q2 of 2001 and will serve approximately 1.1 million subscribers. One of Casema's primary requirements was to deploy a best-of-class technology that offered them the flexibility to scale service on an as-needed basis. "As consumer demand for various voice and data services grows, our clear goal is to have in place a flexible network capable of supporting today's demands while still affording us the flexibility to offer new applications and services as they enter the mainstream," said Fred Van Let, Director of Casema's Competence Center on Broadband Technology. "Harmonic's METROLink platform offers the best solution in terms of flexibility, performance, and cost-efficiency."

TV Cabo Offers Interactive Services

Portugal Telecom fully owned cable operator TV Cabo Portugal anticipates completing network upgrades in Q2 of 2001 in the metropolitan area of Lisbon and Oporto, with plans from TV Cabo on providing high-speed Internet access and new interactive television services to its subscribers.

For TV Cabo, minimizing return path noise was critical for its successful launch of interactive services. The METROLink return path system meets this objective. By multiplexing multiple wavelengths onto a single fiber for transport back to the headend, return path noise in the signal is significantly decreased. The result is a robust return path distinguished by a very low bit error rate even under high load and ingress noise.

"We offer high-speed Internet service, so we wanted to reduce noise in our return path by segmenting the network. We wanted a technology leader and Harmonic's track record of providing leading-edge solutions for optical networks is well respected," commented Manuel Sequeira, TV Cabo's Director of Technology.

DWDM in HFC Networks

"Advanced two-way services are driving growth in the cable industry and DWDM technology is an effective solution that delivers bandwidth scalability and flexibility to network operators," commented Patrick Harshman, Harmonic's Vice President of Marketing, Broadband Access Networks Division. "DWDM can cost-effectively provide the high degree of forward and return segmentation required for robust two-way performance in advanced optical networks. We're excited to be working with Casema and TV Cabo to demonstrate the benefits of this technology in key HFC networks throughout Europe."

METROLink Improves Bandwidth

In the forward path, the METROLink broadcast transmitter provides a full complement of broadcast analog and digital channels common to all subscribers. Each narrowcast wavelength carries several channels of targeted digital subscriber service. The multiple narrowcast wavelengths are combined and transported on a single fiber from the headend to the hub. At the hub they are bundled with an optical demultiplexer and individually optically combined with the broadcast signal. The two combined broadcast and narrowcast wavelengths are then transmitted to a targeted single receiver node or group of receiver nodes. With proper control of optical power levels and modulation index, there is minimal noise degradation of the broadcast signal, all the while achieving low bit-error rate of the narrowcast signal. Additional information on Harmonic's optical product line can be found at www.harmonicinc.com.

About Casema

With almost 30 years of experience and approximately 1.1 million subscribers, Casema has become one of the Netherlands' leading cable operators. The Casema network, whose traditional task has been to transport radio and television signals to private households, is located mainly in the central and southwestern regions of the Netherlands. Casema serves such cities as The Hague, Utrecht and Breda.

About TV Cabo

TV Cabo is a national cable operator reaching a total of 2.05 million homes with a market share over 90%. TV Cabo complements its cable coverage through a multi-channel digital satellite platform. The company provides a large bouquet of 44 basic channels to cable subscribers and over 20 to DTH satellite subscribers. To enhance the package of products offered, TV Cabo launched some important TV contents including the premium sports channel Sport TV, the premium movie channels Telecine 1 and Telecine 2.

In November 1999, TV Cabo launched NetCabo, the first real high-speed Internet access via cable-modem. This service provides Internet access to the high-end of the market at speeds around 600 kbps, several orders of magnitude faster than conventional access. TV Cabo is fully owned by PT Multimedia.

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 includes forward-looking statements, including, but not limited to, the expected benefits to the operators of Harmonic's METROLink transmission system, expected completion dates of network upgrades, growth in subscriber demand, operator plans for new services and the performance of the METROLink system, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are also subject to risks and uncertainties which could cause actual results to differ materially from those projected. Those risks include delays in customer network upgrade plans, subscriber acceptance of new or existing services and other risk factors detailed in the Company's filings with the Securities and Exchange Commission, including reports on Form 10-K and 10-Q.

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