ACE(R) Transcoding Engine Now Enables Unprecedented Combination of Video Quality, Density, and Stream Processing Benefits for Mobile and Web Video Applications

SAN JOSE, Calif. -- April 14, 2012 -- Harmonic Inc. (NASDAQ: HLIT) today announced the next generation of its ACE(R) (Agile Compression Engine), leveraging Harmonic's award-winning H.264 video compression expertise to deliver a new level of transcoding density with exceptional video quality for multiscreen applications. With the new multiscreen transcoding functionality, the ProStream(R) 1000 with ACE is capable of transcoding up to 20 HD streams and 80 adaptive streaming profiles in a single, dense, power-efficient 1RU appliance. As a key component of Harmonic's comprehensive multiscreen solution suite, the ProStream 1000 with ACE is integrated with Harmonic's powerful ProMedia(TM) file transcoders, adaptive bit rate packager and origin server, and MediaGrid(TM) active storage system, enabling seamless and operationally-efficient deployment of multiscreen services.

"With the proliferation of new premium multiscreen video services, and increasing marketplace demand for high-quality video on high-resolution mobile devices, tablets, and connected televisions, this advancement of ACE is the right product at the right time," said Orit Kahana, product line manager, stream processing, at Harmonic.

By integrating multiscreen functionality into the market-leading ProStream 1000 with ACE -- which currently supports more than 18,000 broadcast television channels worldwide -- Harmonic enables customers to quickly launch superior-quality streaming video services while lowering capital and operating expenses. The combination of broadcast and multiscreen formats, including Apple(R) HTTP Live Streaming, Microsoft(R) Smooth Streaming, MPEG-DASH, and Adobe(R) HTTP Dynamic Streaming, allows programmers, pay-TV operators, and terrestrial broadcasters to deliver high-quality video to traditional set-top boxes and devices like tablets, smartphones, connected TVs, or PCs simultaneously without compromising on functionality or density.

In addition to video transcoding, ProStream 1000 with ACE boasts an extensive array of stream processing functionality including multiplexing and encryption, as well as audio transcoding and CALM Act-compliant audio level control, dramatically reducing the rack space required to perform these previously discrete tasks.

"Harmonic's intelligent function integration in the ProStream 1000 with ACE allows programmers and service providers to do more with less -- launching new revenue-generating services while simultaneously reducing capital and operational costs," continued Kahana. "As our customers strive to deliver an ever-increasing quantity of content to an ever-increasing variety of devices, ProStream 1000 with ACE, especially when coupled with the broader Harmonic solution portfolio, enables them to launch new revenue-generating services quickly and efficiently."

ProStream 1000 with ACE will be showcased at the 2012 NAB Show in Las Vegas, April 16-19, in Harmonic's booth, SU1802. The new multiscreen capabilities for ProStream 1000 with ACE are scheduled to ship in the second quarter of 2012.

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About Harmonic Inc.

Harmonic Inc. (NASDAQ: HLIT) provides infrastructure that powers the video economy. The company enables content and service providers to efficiently create, prepare, and deliver differentiated video services for television and new media platforms. More information is available at www.harmonicinc.com.

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, including statements related to the anticipated capabilities and benefits of Harmonic's ProStream(R) 1000 with ACE product. Our expectations and beliefs regarding these matters may not materialize and are subject to risks and uncertainties, including the possibility that this product is not accepted in the marketplace or does not meet some or all of its anticipated capabilities or provide some or all of its anticipated benefits, such as an unprecedented combination of video quality, density and stream processing benefits, a new level of transcoding density, enabling seamless and operationally-efficient deployment of multi-screen services, the quick and efficient launch of superior quality streaming video services, lowering capital and operating expenses, reduction of required rack space, and delivery of high-quality video without compromising on functionality or density.

The forward-looking statements contained in this press release are also subject to other risks and uncertainties, such as those more fully described in Harmonic's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec.31, 2011, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to Harmonic as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

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

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