Harmonic Adds Integrated Re-Encoding and Statistical Multiplexing Solution for MPEG-2 Digital Turnaround Applications.

AMSTERDAM, Netherlands -- ProStream(TM) 1000 With DiviTrackMX(TM) Increases Flexibility and Efficiency by Incorporating Closed-Loop Statistical Multiplexing in High Density Stream Processing Platform

Harmonic Inc. (Nasdaq:HLIT) today announced that DiviTrackMX(TM) statistical multiplexing capabilities have been added to its innovative ProStream(TM) 1000 stream processing platform. This new functionality provides operators with unprecedented flexibility--up to 64 compressed MPEG-2 variable bit-rate (VBR) or constant bit-rate (CBR) services can be processed and 16 DiviTrackMX pools supported in the dense and highly efficient one rack-unit (RU) ProStream 1000 platform. By dynamically adjusting the bandwidth allocated to each channel depending upon the complexity of the video, bit-rate efficiency is improved by 10 to 15 percent compared to CBR encoding, increasing channel capacity while preserving outstanding video quality.

For cable and other operators who receive content from satellite or over-the-air feeds and then turn around these digital services for distribution on their pay TV networks, the new ProStream 1000 with DiviTrackMX enhances bandwidth efficiency while also supporting multiplexing and scrambling within a single system. The advanced technology developed by Harmonic for the ProStream 1000 allows both the group of pictures (GOP) structure and the horizontal resolution to be modified, enabling a greater range of bit-rate adjustments, without affecting picture quality.

"The transition to IP-based networks is opening up the possibilities in terms of how operators can architect and run their services," said Yaniv Ben-Shushan, ProStream Product Marketing Manager for Harmonic Inc. "By incorporating Harmonic's market-leading DiviTrackMX statistical multiplexing capabilities within the ProStream 1000, operators can deliver highly efficient VBR services without the need for additional equipment. The multi-functional design of the ProStream also allows the service provider to incorporate other important capabilities such as scrambling within 1-RU, and the system can be re-configured to adjust to the service provider's needs as their service grows over time. This flexibility and density gives operators the ability to build their architectures based on service requirements, not budget constraints."

Harmonic's ProStream 1000 is the industry's first video processing system that can be easily configured to provide a wide range of digital video stream processing functions including the DiviTrackMX integrated multiplexing, scrambling, descrambling, re-encoding and single frequency network (SFN) transmission over IP. The ProStream 1000 platform with DiviTrackMX is being demonstrated as part of Harmonic's full range of stream processing solutions at booth #1.361 at the IBC exhibition in Amsterdam, The Netherlands, from September 8-12.

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 transition to IP-based networks and system reconfiguration to adjust to service providers' needs over time.

Our expectations and beliefs regarding these matters and the anticipated features and benefits of ProStream 1000 with DiviTrackMX may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release are 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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