Harmonic Introduces Most Powerful and Versatile Real-Time Digital Video Encoding Platform.

Business Editors/High-Tech Writers

IBC 2003

Stand #1.361

AMSTERDAM, Netherlands--(BUSINESS WIRE)--Sept. 12, 2003

New DiviCom(R) MV 100 Redefines Ultra-Low Bit Rate

Encoding for MPEG-2 and Next Generation Codecs 

Harmonic Inc. (Nasdaq:HLIT) today announced two new standard definition (SD) real-time digital video encoding systems. The DiviCom MV 100 encoding platform delivers compression efficiencies and video quality that redefines the meaning of ultra-low bit rate encoding for MPEG-2 and next generation video compression. With its innovative software architecture and massive processing capacity, the MV 100 is the most powerful and versatile encoding platform in the industry. Harmonic is also introducing the DiviCom MV 30, a low bit-rate video encoder that offers high-end features and capabilities in a cost-effective package.

Building on the compression technology foundation developed by Harmonic over the last decade, the MV 100 features a dynamic architecture that allows capabilities to be added over time via software upgrades, obviating the need for a hardware upgrade. This provides an extra degree of "future proofing" to both the encoder and the infrastructure in which it is deployed. For example, it's possible to integrate enhanced compression techniques that further improve MPEG-2 efficiencies and/or picture quality without changing the underlying hardware. What is more, it can be reconfigured in the field to migrate from MPEG-2 to a next generation codec, such as MPEG-4 AVC, that best meets the operator's business and operational requirements.

"The phenomenal processing power combined with the flexible software architecture enables Harmonic to further innovate with MPEG-2, reducing bit rates and generating a superior return on investment for the operator," said Buddy Snow, vice president of Marketing for Harmonic's Convergent Systems Division. "The superior compression and noise reduction capabilities of the MV 100 allow video service providers across the entire content delivery chain to transport more high quality video within the available bandwidth. It also makes it possible to provision video services over even the most bandwidth sensitive networks."

The multiple output options on the DiviCom MV 100 platform simplify the integration of new services into legacy and IP-based environments. The IP output option provides greater flexibility and scalability than previously possible.

MV30: First-Class CBR Compression and Capabilities

With bit rates under 3 Mbps, the MV 30 brings a new level of performance and flexibility in constant bit rate (CBR) applications. The MV 30, which incorporates features typically found on only the most advanced encoders, is particularly well suited for cable, broadband wireless (e.g., MMDS and LMDS) and other applications that require a cost-effective CBR encoding solution without compromising video quality.

As with the MV 100, the MV 30 includes advanced MCTF, 4:2:2 and 4:2:0 color sampling, and optional IP output. Furthermore, both encoding systems incorporate standards-based digital program insertion (DPI), allowing advertisements to be dynamically inserted into an already compressed digital video stream. DPI not only increases operators' revenue, it also permits programming to be regionalized for a more locally-relevant viewing experience.

Encoding the Future

"The expanded DiviCom encoder product line allows Harmonic to offer the best encoding solutions for a wide variety of operator environments," continued Snow. "The MV100 is simply the most powerful encoder available on the market, given its processing performance and ability to incorporate additional features and compression formats. The MV30 represents exceptional price/performance for CBR applications. And, the DiviCom MV 450 delivers the best high definition compression and video quality available today."

The new DiviCom encoders are fully supported by Harmonic's NMX Digital Service Manager(TM), a breakthrough network management system that allows the video infrastructure to monitored and controlled as a series of services. As well, the systems operate in standalone mode without requiring external management.

The MV 100, MV 30 and new MV 450 (see release entitled "Harmonic Powers Value-Added High Definition Services with New Digital Video Encoder," September 12, 2003) will be demonstrated at Harmonic's IBC2003 stand (#1.361) in satellite (DVB-S), terrestrial (DVB-T), cable (DVB-C) and telecoms applications.

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, Calif. 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, including, but not limited to, statements describing several features and benefits of the new DiviCom MV 100 and MV 30 encoders, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In addition, actual results could differ materially from those projected in the forward-looking statements as a result of additional risk factors set forth in documents that Harmonic files with the SEC, including reports on Form 10-K and 10-Q.

EDITOR'S NOTE -- Product and company names used herein are trademarks or registered trademarks of their respective owners.