Harmonic Revolutionizes Broadcast Video Content Aggregation and Distribution.

SUNNYVALE, Calif. -- New DiviTrackIP(TM) Distributed, Closed-Loop Statistical Multiplexing System Streamlines Digital Video Infrastructure While Increasing Service Flexibility and Bandwidth Efficiency 

Harmonic Inc. (Nasdaq:HLIT) today introduced DiviTrackIP(TM), a revolutionary new closed-loop statistical multiplexing system that seamlessly incorporates remotely acquired video content to better optimize picture quality and compression efficiency. This innovative solution -- which reflects Harmonic's pioneering work and leadership in statistical multiplexing and broadcast-grade video-over-IP services -- streamlines the digital video infrastructure and provides greater flexibility in delivering standard (SD) and high definition (HD) broadcast television. DiviTrackIP can also support encoders using MPEG-2, MPEG-4/AVC (H.264) and SMPTE VC-1, building greater long-term value for the operator.

The geographical separation between the source of a video program and those who deliver it to the viewer has resulted in the implementation of very complex and costly headends architectures, even when offering a basic set of broadcast services. Competition between traditional and emerging broadcasters -- such as Internet-based providers -- is driving the need to deliver more programming with uncompromised video quality through existing networks and, at the same time, tailor the experience for each service area. Harmonic's new DiviTrackIP solution makes it possible to efficiently aggregate content from a multitude of sources using an IP-based network while reducing overall complexity and maximizing the number of services that can be delivered within the available bandwidth.

"Harmonic's breakthrough DiviTrackIP distributed, closed-loop statistical multiplexing system dramatically changes the way broadcast digital video services are provisioned," said Jean-Christophe Morizur, Director of Product Marketing for the Convergent Systems Division of Harmonic Inc. "No longer are service providers, such as direct-to-home satellite and digital terrestrial operators that centrally distribute national and local programs, constrained by the physical restrictions and capacity limitations of existing foundation technologies, like DVB-ASI. DiviTrackIP makes it possible to increase the compression efficiency, video quality and channel density per transport stream irrespective of where the encoders might be located, reducing the total cost of ownership for the service. And, having designed DiviTrackIP to be compatible with both MPEG-2 and advanced compression technologies, Harmonic offers a vastly superior solution compared to other approaches."

By combining IP and statistical multiplexing technologies, operators can easily create virtual headends in which any of Harmonic's industry-leading DiviCom(R) SD and HD encoders can be located anywhere and networked into any multiplex. The closed-loop, or bi-directional, IP-based communication between the DiviTrackIP multiplexer and the pool of distributed encoders permits the available bandwidth to be dynamically redistributed to the programs that need it most, maximizing the service-carrying capacity while preserving video quality. DiviTrackIP scales to support a mix of up to 24 SD and HD services per pool and three pools per transport stream, enabling new types of content delivery models.

"Harmonic was instrumental in pioneering broadcast-quality video-over-IP for transporting on-demand services across the video backbone as well as for the contribution and distribution of broadcast television services," continued Morizur. "Because DiviTrackIP is compatible with upstream Ethernet and ATM networks as well as downstream ASI-based headend systems, Harmonic is creating yet another opportunity for its customers to benefit from the economics and flexibilities associated with IP."

When used in conjunction with Harmonic's NMX Digital Service Manager(TM), DiviTrackIP allows the implementation of a wide range of local and distributed redundancy models that increase service availability without increasing costs and complexity. In addition to 1:1, N:1 and N:M redundancy at the encoder and multiplexer level, Harmonic enables the same models to be applied virtually across geographically distributed systems. The versatile nature of a DiviTrackIP-based headend also permits operators to dynamically reconfigure their services and perform load balancing across multiple sites.

The new DiviTrackIP distributed closed-loop statistical multiplexing solution will be featured in Harmonic's booth (#SU10707) at NAB 2005 in Las Vegas, Nevada, April 18 - 21.

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 statements which may be 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 expected features and benefits of DiviTrackIP.

Our expectations and beliefs regarding the features and benefits of DiviTrackIP and its acceptance by customers may not materialize, and actual results could differ materially from our expectations. 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 Annual Report filed on Form 10-K for the year ended December 31, 2004. Harmonic does not undertake to update any forward-looking statements.

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