Cauley & Geller, LLP Announces Class Action Lawsuit Against Harmonic Inc. Seeking Damages On Behalf of Shareholders.

Business Editors/Legal Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--June 29, 2000

The Law Firm of Cauley & Geller, LLP announced today that it has filed a class action in the United States District Court for the Northern District of California on behalf of all individuals and institutional investors that purchased or otherwise acquired the common stock of Harmonic Inc. ("Harmonic" or the "Company") (Nasdaq:HLIT) between March 27, 2000 and June 26, 2000, inclusive (the "Class Period").

The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading financial statements concerning the Company's revenues. Harmonic designs, manufactures and markets digital and fiber optic systems for delivering video, voice and data services over cable, satellite, telephone and wireless networks. The company's solutions enable cable television and other network operators to provide a range of broadcast and interactive broadband services that include high-speed Internet access, telephony and video on demand. The complaint alleges that defendants' false and misleading statements concerning the revenues to be derived from Harmonic's largest customer, AT&T, and from its newly acquired C-Cube division (DiviCom), which would result in 2000 EPS of $1.19+, artificially inflated the price of Harmonic stock to a Class Period high of $102. This upsurge in Harmonic's stock caused by defendants' false and misleading statements enabled Harmonic to complete the $1.7 billion acquisition of the C-Cube's DiviCom business. After the acquisition was completed, on 6/26/00, Harmonic revealed that it was in fact suffering a huge drop in revenues and exposed the problems Harmonic had been experiencing during the Class Period in attempting to grow its business. This announcement caused its stock price to drop to as low as $22-11/16 on record volume of 21.9 million shares on 6/27/00 causing hundreds of millions of dollars in damages to members of the Class.

Cauley & Geller, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must take appropriate action by August 28, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.