Harmonic to Add Microsoft Windows Media 9 Series Support to its Versatile New DiviCom Open Encoding Platform.

Business Editors/High-Tech Writers

IBC 2003

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

IBC2003 Stand #1.361 -- Harmonic Inc. (Nasdaq:HLIT) today announced it is working with Microsoft to enable the delivery of advanced digital video services over wired and wireless networks. As part of initiatives to broaden the availability of digital video services, Harmonic is planning to add Windows Media Video 9 codec support to the new open architecture DiviCom(R) real-time encoding platforms. Harmonic and Microsoft are actively and jointly working to develop Windows Media 9 Series-related market opportunities.

Digital video, though still early in its deployment, is changing the way television is viewed. It is enabling a shift from the passive experience long associated with television to a compelling interactive, on-demand experience. Not just for entertainment, digital video is a key element in the convergence of television, computing and telephony.

The newly introduced DiviCom MV 100 will be the first Harmonic encoding platform to offer the Windows Media 9 Series codec. The MV 100's innovative open software architecture and massive processing power enable the support of Windows Media 9 Series in addition to MPEG compression. The superior compression and noise reduction capabilities inherent in Harmonic's digital video solutions coupled with the compression efficiencies of Windows Media 9 Series will enable operators to deliver more high quality video services within their available bandwidth. As well, the multiple output options for the DiviCom platform simplify the integration of new services into legacy and IP-based environments to provide a truly "future-proof" solution.

"As a recognized leader in real-time digital video compression, multiplexing and transport technology, products and services, Harmonic brings the expertise, reach and influence to meet the needs of the industry," stated Amir Majidimehr, General Manager of Microsoft Corporation's Windows Digital Media Division. "Harmonic's support of Windows Media 9 Series is an important step forward in making Windows Media 9 Series broadly available to the broadcast industry."

The power and flexibility of the DiviCom encoder platform make it possible to distribute value-added video services over even the most bandwidth sensitive networks going to and within the subscriber's premises. Improvements in device form factor and bandwidth, combined with Harmonic's ultra low-bit rate encoding solutions, make it possible to provision compelling interactive video services to TVs, PCs and wireless devices such as PDAs and cellular phones.

"By adding support for the broadcast quality Windows Media 9 Series codec, Harmonic's DiviCom MV 100, the most capable encoding platform in the industry, will also be the most versatile. Now, program originators and distributors, terrestrial broadcasters, carrier networks operators -- including cable, satellite, telco and wireless -- and other video service providers will be able to deploy DiviCom encoders using a codec that best suits their current and future business needs," said Yaron Simler, President of Harmonic's Convergent Systems Division. "What is more, our systems will be immediately interoperable with tens of millions of personal computers and other devices. We expect this to facilitate the introduction of a wide range of video-based entertainment and information services thereby expanding the market opportunities for our customers."

A press conference is scheduled for Friday, September 12, 2003 at 1.00pm (13.00 CET) in Room T of the IBC2003 Press Centre.

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 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include Harmonic's plans to add Windows Media 9 codec support to its new DiviCom encoding platforms, the role of digital video in the convergence of television, computing and telephony, and a number of anticipated benefits to customers in Harmonic's support of Windows Media 9. These statements involve risks and uncertainties, and, 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.