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Harmonic Introduces Powerful Multi-Codec, Multi-Format, Real-Time High Definition Encoder;

1 September 2005

Harmonic Inc. (Nasdaq:HLIT) -- the leading provider of broadcast-grade, real-time, advanced codec-enabled compression solutions -- today introduced the DiviCom(R) MV 3500 encoding platform, the first multi-format high definition (HD) encoder supporting the use of either MPEG-4 AVC (H.264), SMPTE VC-1 or MPEG-2. As the most powerful encoder of its kind, the MV 3500 leverages Harmonic's industry leadership in HD, established by the DiviCom MV 450, and advanced codec expertise, developed through the success of the MV 100 multi-codec standard definition encoder. This full-featured encoding platform brings the performance, video quality and proven interoperability -- from the headend to the subscriber premises -- that operators need to offer a rich HD experience at low bit-rates.

"As with our groundbreaking DiviCom MV 100, which is now the industry's most widely deployed multi-codec standard definition encoder, the DiviCom MV 3500 has the performance and capabilities that satellite, telecom and terrestrial broadcasters need to deliver a compelling HDTV experience," said Patrick Harshman, President of the Convergent Systems Division of Harmonic Inc. "Harmonic is introducing not just a superb encoder, but a whole portfolio of supporting HDTV solution capabilities. We have ensured that the DiviTrack(TM) statistical multiplexing solution, ProCipher(TM) content protection system and CLEARcut(TM) storage encoding solution all have built in support for both HD and SD in the MPEG-2, MPEG-4 AVC and SMPTE VC-1 formats. And, our on-going interoperability program is working with leading third party technology and system providers, such as Broadcom, Conexant, Pace Micro Technology and Thomson, to facilitate the introduction of ready-to-deploy solutions which, for the most part, are only now becoming available."

The MV 3500 supports constant bit-rate (CBR) and variable bit-rate (VBR) encoding, and can deliver digital content in a variety of formats -- including 1080i and 720p -- and resolutions. It incorporates innovative compression technology pioneered by Harmonic -- such as MotionTrack(TM) which provides full-field motion estimation, multi-pass LookAhead(TM) analysis and advanced video filtering -- to yield superior quality HD video at the lowest possible bit-rate. The MV 3500 is also the industry's first HD encoder to feature advanced pre-processing functions such as Motion Compensated Temporal Filtering (MCTF), which removes noise without introducing motion blur artifacts.

To ensure viewers receive the full HD experience, Harmonic's new HD platform supports multiple audio encoding formats such as MPEG Layer II, AC-3, AAC, aacPlus, and AC-3 5.1 pass-through. The system's flexible software architecture and substantial processing power make it possible for operators to benefit from new compression and video quality enhancements, features and codecs, delivering better value for the operator over the long-term.

"The DiviCom MV 3500 combines technologies that together create a unique, robust and programmable platform that will provide years of high quality service and accelerate the move toward the all high definition future," said Arnaud Perrier, Marketing Manager for Encoder Products at Harmonic Inc. "Over the life of the system, Harmonic expects to deliver MPEG-4 AVC compression rates that are significantly better than today's best available MPEG-2 HD encoder, the DiviCom MV 450."

Using the MV 3500 in CBR mode, telecom operators for the first time will be able to viably introduce competitive HDTV, voice and data services over bandwidth limited DSL networks. Satellite distribution and direct-to-home service providers deploying the VBR version of the new encoder can greatly increase the HD channel carrying capacity of their existing transports. When used in conjunction with DiviTrackIP, Harmonic is able to provide unparalleled efficiency and simplicity in the aggregation, compression and distribution of local and national HD channels.

The new HD encoding platform can be operated as a standalone system or as part of a larger service environment via NMX Digital Service Manager(TM). The powerful NMX system enables a full range of monitoring and redundancy architectures in addition to automating maintenance functions.

Harmonic will showcase the DiviCom MV 3500 multi-codec HD encoding platform, DiviTrackIP distributed statistical multiplexing solution and NMX Digital Service Manager at IBC 2005, booth #1.361, September 9-13 in Amsterdam, The Netherlands.

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: facilitating the introduction of ready-to-deploy solutions, a platform that will provide years of high quality service and accelerate the move toward the all high definition future, Harmonic's expectation that, over the life of the system, it will deliver MPEG-4 AVC compression rates that are significantly better than the DiviCom MV450, the ability of telecom operators for the first time to viably introduce competitive HDTV, voice and data services, and greatly increasing the HD channel carrying capacity of existing transports.

Our expectations and beliefs regarding these matters and the features and benefits of the DiviCom MV 3500 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.

Contacts

AxiCom for Harmonic
Lewis Webb, 408-543-7300 or +44.20.8392.4056
(Media Relations)
harmonic@axicom.com
or
StreetConnect for Harmonic
Michael Newman, 408-542-2760
(Investor Relations)
hlit@stct.com

Source: Business Wire


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