Press Release

SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 26, 2002--

VOD Gateway and DWDM Transport Systems Are Platform of Choice

for Cost-Effectively Scaling Capacity, Reach and Range of Services

Harmonic Inc. (Nasdaq:HLIT) today announced that Charter Communications Inc. (Nasdaq:CHTR) is deploying Harmonic's video-on-demand (VOD) solutions in 12 markets with additional markets planned for later this year. The solutions deliver a high degree of architectural flexibility and scalability that enables Charter to increase capacity while simplifying its network to reduce both deployment and operating costs.

Charter chose Harmonic's Narrowcast Services Gateway(TM) (NSG) for their ongoing rollout of services, in combination with Harmonic's GIGALight(TM) DWDM transport systems in some markets. Charter, which continues to expand service in response to accelerating customer demand, is installing NSGs to distribute narrowcast video streams more efficiently.

"Harmonic's Narrowcast Services Gateway provides an efficient standards-based infrastructure for delivering VOD, which is very important for our future growth, and seamless integration with existing equipment in our diverse network environments," said John Pietri, senior vice president of engineering at Charter Communications. "This solution gives us the added benefit of a pay-as-you-grow deployment model, allowing us to add capacity only when and where it is needed."

"Charter continues to be at the forefront of interactive services, offering video-on-demand in addition to high-speed Internet, interactive TV and telephony services, all of which can increase subscriber retention rates and lifetime customer value," said Dr. Yaron Simler, president of Harmonic's Convergent Systems Division. "As a leader in content-on-demand delivery solutions, Harmonic enables cable operators to enhance their competitiveness and generate more revenue by more easily expanding their capacity, reach and range of services. Harmonic's open standards-based VOD gateway and DWDM transport systems give cable operators greater architectural flexibility as well as interoperability with the wide array of equipment -- including video servers, conditional access systems, transport protocols and set-top boxes -- found in today's networks."

Narrowcast Services Gateways Enable Gigabit Ethernet Advantages

The Narrowcast Services Gateway (NSG) product line enables the deployment of a Gigabit Ethernet (GbE) access network, providing advantages that include scalability, flexibility and incremental expansion. The GbE interface allows NSGs to be co-located with the video servers in the cable headend or distributed to the hubs, enabling a more flexible and scalable architecture for delivering content-on-demand services. A key benefit of the Harmonic VOD solution is that it moves the gateway deeper into the network, enabling the NSG to act as a reusable resource that allows bandwidth to be shared by multiple on-demand video and IP applications. The gateways process streams from multiple high capacity servers and in addition perform multiplexing, program filtering and routing. The NSG features four dual integrated QAM RF outputs or, alternatively, multiple ASI output interfaces.

GIGALight Supports VOD and Internet Access over Gigabit Ethernet Networks

GIGALight is a scalable DWDM transport system that enables flexible and cost-effective transmission of broadcast and narrowcast services such as VOD, high-speed Internet data and IP telephony. Supporting a variety of digital transport protocols -- including Gigabit Ethernet, ATM and SONET/SDH -- and up to 32 wavelengths on the ITU grid, the GIGALight system allows broadband network operators to maximize the service delivery potential of their existing fiber infrastructure.

About Charter Communications Inc.

Charter Communications, A Wired World Company(TM), is among the nation's largest broadband communications companies, currently serving more than 6.8 million customers in 40 states. Charter provides a full range of advanced broadband services to the home, including cable television on an advanced digital video programming platform marketed under the Charter Digital Cable(R) brand and high-speed Internet access via Charter Pipeline(R). Commercial high-speed data, video and Internet solutions are provided under the Charter Business Networks brand. Advertising sales and production services are sold under the Charter Media brand. A Fortune 500 and Nasdaq 100 Company, Charter was the 2001 recipient of the Outstanding Corporate Growth Award from the Association for Corporate Growth, the 2001 R.E. "Ted" Turner Innovator of the Year Award from the Southern Cable Telecommunications Association, and the 2001 Fast 50 Award for Growth from the St. Louis Regional Chamber and Growth Association. More information about Charter can be found at www.charter.com.

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, Calif., 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 including, but not limited to, Charter's plans for additional markets later this year, increases in capacity while simplifying the network, expansion of service in response to accelerating customer demand, the importance of VOD to Harmonic's future growth, and increasing subscriber retention rates and lifetime customer value, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In addition, actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth in documents that Harmonic files with the SEC, including reports on Form 10-K and 10-Q.

Note to Editors: Product and company names used here are trademarks or registered trademarks of their respective companies.

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