Leading German Satellite Broadcaster Protects Content and Operations with Harmonic DVB Headend Solution.

SUNNYVALE, Calif. -- DPC Deploys Award-Winning Broadcast Network Gateway(TM) for DVB Scrambling and NMX Digital Service Manager(TM) for Control and Monitoring

Harmonic Inc. (Nasdaq:HLIT) today announced that Digital Playout Center GmbH (DPC), a subsidiary of Premiere Fernsehen GmbH, has deployed an integrated, standards-based content protection and service management solution from Harmonic. DPC, Germany's largest satellite broadcaster, is using Harmonic's award-winning Broadcast Network Gateway(TM) (BNG) and NMX Digital Service Manager(TM) to increase the security and availability of its digital TV service. This DVB-compliant solution is compatible with DPC's existing headend and customer premises equipment, bringing greater operational control and flexibility while ensuring a seamless customer experience.

Each year pay-TV operators lose hundreds of million of dollars in revenue due to unauthorized service access and an inconsistent quality of service. This has made content protection and system reliability critically important issues for broadcasters of all types and particularly for satellite, digital terrestrial and wireless operators who transmit their services "in the clear." With this deployment, DPC is at the forefront of a worldwide migration to a more capable, standards-based platform.

"Digital Playout Center has a longstanding reputation for operating one of the most modern broadcast systems in Europe," said Jens Leidenberger, Director Customer Projects at DPC Digital Playout Center GmbH. "When it came time to implement an even higher level of security, we required complete continuity of service for the 2.9 million pay-TV subscribers of Premiere as well as our program distribution customers who reach millions more. Harmonic's high-performance solution is fully interoperable with our existing infrastructure and yields better overall control, improving both our business and operational efficiencies. Harmonic's SimulCrypt expertise and experience simplified a very complex integration process and allowed new capabilities to be brought online transparently to our users."

In addition to scrambling and MPEG stream multiplexing, Harmonic's Broadcast Network Gateway is fully compliant with the DVB SimulCrypt Version 3 standard. The BNG, in conjunction with Harmonic's NMX Digital Service Manager, also permits new features and applications to be dynamically downloaded to deployed set-top boxes.

"Traditionally, conditional access, video compression and set-top systems were tightly coupled in a proprietary manner. The DVB SimulCrypt standard allowed competition which has stimulated innovation and reduced the cost of ownership," said Dr. Yaron Simler, President of Harmonic's Convergent Systems Division. "Harmonic's SimulCrypt solution, based on the Broadcast Network Gateway and NMX Digital Service Manager, better enables DPC to expand and scale its headend infrastructure, as needed, to maintain a state-of-the-art service. Our solution is proven to be interoperable with the leading open conditional access systems. It can be retrofitted into an existing headend, irrespective of whether it already incorporates Harmonic video compression equipment, to improve the operator's flexibility, control and security."

Harmonic has further increased service throughput and availability with redundant systems and communication paths. NMX provides a single view of DPC's environment -- including third party elements -- and can dynamically reconfigure the infrastructure in the event of a problem. The service-level orientation of NMX enables DPC to easily establish and change the security settings on individual channels or a complete lineup. In addition to its built in scheduling capability, NMX integrates with DPC's existing automation and scheduling system to permit dynamic lineup modifications.

Harmonic is demonstrating DVB-compliant headend systems for digital terrestrial, satellite and cable environments at IBC2004, stand #1.361, September 10-14 in Amsterdam, The Netherlands.

About Digital Playout Center GmbH (DPC)

The DPC, a subsidiary of Premiere Fernsehen GmbH, operates one of the most modern transmission centers in Europe. Today, the broadcast center transmits by satellite more than 100 digital TV and radio channels as well as data services for Premiere. In addition to transporting content for Premiere, DPC also transmits programming for ProSiebenSat.1 Media AG, Home Shopping Europe HSE 24, German sport television DSF, use Tele 5, 9Live and many others. DPC also operates the IP-sat Network(R) which brings satellite-based multicast data and wide-band multimedia communications services to business customers.

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: a worldwide migration to a more capable standards-based platform, and DPC's ability to expand and scale its headend infrastructure as needed.

Our expectations and beliefs regarding these matters may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release area 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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