Harmonic Announces the TRANsend MID 8000 Delivering MPEG-2 Video Over IP; Latest TRANsend Module Brings Real-time Broadcast Video to the Telco Market.

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Sept. 10, 1999--

Harmonic Inc. (Nasdaq:HLIT) today announced the MID 8000, the latest module for the TRANsend(TM) digital product line.

With the MID 8000, telco operators will have the ability to enhance their service offerings with broadcast quality, full motion, real time-video from one common platform. The MID 8000 is the latest development in Harmonic's strategy to enable telcos to complement their existing data and telephony services with real time video and provide a one-stop shop solution to their customers.

The MID 8000 integrates seamlessly with existing telco solutions to offer broadcast-quality live video services over switched broadband networks. Working in combination with the TRANsend Video Transmission Platform, the VTP 8000, the MID 8000 enables telco operators and corporations to aggregate MPEG-2 compressed video and audio from a variety of sources, such as live television broadcast and video conferencing, for delivery over data networks to IP video receivers in unicast or multicast mode. Compatible with xDSL technology, the MID 8000 provides the Central Office element of a switched video environment that leverages existing bandwidth on IP networks, enabling telcos to optimize their existing infrastructure to tailor services to their customers, whether they are in major cities or in rural areas.

"This is a highly competitive market as telcos battle to retain their foothold against the satellite, cable and wireless operators. By enabling telcos to offer the full range of telephony, data and video services, the MID 8000 is helping to level the playing field, while providing the telcos with the opportunity for enhanced revenues through bundled services," commented Patrick Harshman, Director, Product Line Management, Digital Systems, for Harmonic Inc.

The MID 8000 is a combination of an MPEG-2 over UDP/IP encapsulation module and an IP over Ethernet transmitter. Taking advantage of the highly modular TRANsend platform, the MID 8000 provides a flexible and scalable solution that integrates seamlessly into existing networks.

About TRANsend

Harmonic's TRANsend digital headend is comprised of several components, including MPEG-2 encoders and multiplexers, MPEG-2 content receivers, and the video transmission platform that serves as the headend's building block. The compact and integrated headend can be flexibly configured to operators' individual needs via Harmonic's NETWatch(TM) Element Management System.

The TRANsend digital products are compatible with all relevant worldwide and domestic standards, including ITU/SCTE (International Telecommunications Union/Society of Telecommunications Engineers), DVB (Digital Video Broadcast) and DAVIC (Digital Audio Video International Communication).

About Harmonic Inc.

Harmonic designs, manufactures and markets digital and fiber optic systems that deliver video, voice and data over cable, satellite and wireless networks. These advanced solutions enable cable television and other network operators to provide a range of interactive broadband services that include high-speed Internet access, telephony and video-on-demand. Harmonic is headquartered in Sunnyvale, Calif., where it also operates an R&D center and a manufacturing facility, and has a sales and support center in the U.K. and a sales office in Belgium. The company also operates its Harmonic Data Systems subsidiary and an R&D center in Israel. In addition, the company maintains several sales and support centers worldwide. Harmonic is ISO 9001-certified and its 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, the ability of telco operators to enhance their service offerings with the MID 8000, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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, specifically reports on Form 10-K and 10-Q.

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