Harmonic Introduces New ACE™ Any-to-Any Transcoding Capabilities

SUNNYVALE, Calif. — Sept. 8, 2009 — Harmonic Inc. (NASDAQ: HLIT) today introduced ACE™ (Agile Compression Engine), a ground-breaking new transcoding technology that extends the functionality of its versatile ProStream™ 1000 stream processing platform. ACE offers industry-leading density supporting MPEG-2 and MPEG-4 AVC (H.264) transcoding of up to 20 high definition (HD) or 80 standard definition (SD) video and audio channels in a compact and power-efficient one rack-unit (1-RU) chassis. This scalable IP-based transcoder supports a number of applications including real-time transcoding for digital turnaround (DTA), mobile video, Internet TV and digital program or advertisement insertion. Existing ProStream 1000 systems are easily field-upgradeable to support the new ACE functionality.

The ProStream 1000 is the industry's most flexible solution for a variety of stream processing needs, including scrambling/descrambling, re-encoding, transcoding, statistical multiplexing, forward error correction (FEC), variable to constant bit-rate conversion and single frequency network (SFN) transmission over IP. Harmonic is also enhancing the ProStream 1000 to offer integrated automatic audio level adjustment and quality of service monitoring with Harmonic's IRIS™ software.

The ProStream 1000 with ACE offers an innovative and broad feature set:

• "Any-to-Any": Transcodes any combination of MPEG-2, MPEG-4 AVC, HD, SD and numerous audio codecs, including HD to SD down-conversion

• "Any-to-Many": Multiple output streams per input service to simultaneously support broadcast digital simulcast/triplecast, switched digital video (SDV) and video-on-demand (VOD) services

• Support for mixed statistical multiplex pools of transcoded and encoded services with Harmonic's market-leading DiviTrack™ statistical multiplexing

• Enhanced audio processing including transcoding and level adjustment

• Quality of service monitoring and optimization with Harmonic's IRIS™ software

"The new ACE transcoding technology on our ProStream 1000 sets the benchmark in terms of feature set, density and performance from a single stream processing platform," said Yaniv Ben-Shushan, Product Marketing Manager for Harmonic Inc. "Cable operators deploying ACE can create multiple versions of video from the same input source, such as HD and SD versions or constant bit-rate formats for time-shifted TV. Operators using hybrid network architectures can transport MPEG-4 content over satellite or IP and transcode at the edge, reducing the number of decode/re-encode steps and preserving higher video quality. Telco video service providers can reliably and cost-effectively transcode from MPEG-2 to MPEG-4 for delivery of the channel lineup over the IPTV network."

Harmonic will showcase the ProStream 1000 with ACE transcoding technology at the upcoming IBC exhibition in Amsterdam, September 11-15, stand 1.C61. First shipments of the ProStream 1000 with ACE will begin later this year.

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About Harmonic Inc.

Harmonic Inc. is redefining video delivery with the industry's most powerful solutions for live and on-demand content preparation and distribution of video to TVs, PCs and mobile devices. Harmonic's 20 years of technical innovation and market leadership enable the company to offer a unique and comprehensive solution portfolio — including encoding, transcoding, content preparation, stream processing, asset management, edge processing and delivery. Broadcast, cable, Internet, mobile, satellite and telecom service providers around the world choose Harmonic's IP-based digital video, software and broadband edge and access solutions. Using these award-winning and industry-leading solutions, operators can reduce costs and differentiate their services by offering consumers a higher quality, personalized multi-screen experience.

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: first shipments of the ProStream 1000 with ACE beginning later this year.

Our expectations and beliefs regarding these matters and the capabilities and benefits expected from ProStream 1000 with ACE may not materialize, and actual results could differ materially from those projected. 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 recent Reports filed on Form 10-K and Form 10-Q. 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.