Press Release

Harmonic Enables Leading French Satellite Broadcaster To Expand Programming By Increasing Bandwidth Efficiency

July 16, 2002
SUNNYVALE, Calif., Jul 16, 2002 (BUSINESS WIRE) --

Media Overseas Deploys DiviCom(R) Digital Video Systems and DiviTrackXE(TM) Statistical Multiplexing Solution to Broadcast 18 Channels on a Single Satellite Transponder

Harmonic Inc. (Nasdaq:HLIT) today announced that its digital headend systems are being used by Media Overseas, a leading French-language Direct-to-Home (DTH) satellite broadcaster, to increase the effective bandwidth of its network, providing more capacity to deliver additional programming content.

Deployment of the high-performance DiviCom(R) MV50 MPEG-2 digital video encoding systems and the DiviTrackXE(TM) statistical multiplexing solution enables Media Overseas to reduce the distribution cost per channel and increase the number of channels offered over a single satellite transponder. Use of the Harmonic systems has enabled Media Overseas to upgrade its services without having to lease more satellite transponder capacity.

Media Overseas, a subsidiary of Vivendi Universal, delivers digital television services to the French Overseas Territories and French speaking West African countries. These regions include the West Indies, Indian Ocean, South Pacific, Central and West Africa. Media Overseas has created a number of multi-channel service offerings specific to each region.

"Proactively addressing the needs of our customers is a top priority at Media Overseas. A geographically diverse subscriber base combined with the bandwidth constraints of satellite broadcast networks make this quite a challenge," said Dominique Fagot, CEO, Media Overseas. "After carefully evaluating the possible technology options, we determined that Harmonic solutions offer the greatest scalability, network efficiency and picture quality. With Harmonic, we can increase value to the subscriber while minimizing service operating costs."

"To remain at the forefront, Media Overseas has established the digital headend infrastructure needed to easily introduce new and different television programming and services. At the same time, the cost of delivering these services can be more carefully managed to maximize their return on investment," said Dr. Yaron Simler, President of Harmonic's Convergent Systems Division. "Media Overseas exemplifies how Harmonic solutions make it possible to gain both a competitive and economic advantage."

Harmonic's DiviTrackXE Solution Gives Media Overseas Nearly 30 Percent More Broadcast Capacity

The Harmonic solution deployed by Media Overseas is built around the DiviCom MV50 digital video encoders, DiviCom MN20 remultiplexer and DiviTrackXE statistical multiplexing system. This scalable solution allowed Media Overseas to expand the number of channels it broadcasts by nearly 30%, increasing from 14 to 18 channels, without compromising video quality. The MV50's advanced noise reduction and video compression capabilities significantly lower the bandwidth required by a video stream. The statistical multiplexing solution optimizes the use of transponder bandwidth to support more channels of Media Overseas' variable bit-rate PAL format programming. Better bandwidth utilization eliminated the high cost associated with leasing capacity on another satellite transponder by enabling Media Overseas to expand its programming options within the same bandwidth.

    More about Media Overseas
Media Overseas extends its broadcasting activities beyond the French Overseas Departments and Territories by broadcasting Canal+ to Mauritius along with Canalsatellite Maurice and Canalsatellite Madagascar bouquets. In May, Media Overseas launched CANALSATELLITE HORIZONS, a digital platform with 20 French-language channels over West Africa, from Senegal to Gabon. Visit www.media-overseas.com for more information.

    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, including, but not limited to, increases in effective bandwidth of the Media Overseas network, the provision of more capacity to deliver additional programming, reduced distribution cost per channel, and an increase in the number of channels offered over a single transponder, 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.

Editor's Note: Product and company names used here are trademarks or registered trademarks of their respective companies.

CONTACT:          Aries MarketMasters for Harmonic   
                  Dawn Danaher, 714/378-5841 (Media Relations)
                  danaher@keymaster.com
                  or
                  StreetConnect for Harmonic
                  Michael Newman, 408/542-2760 (Investor Relations)
                  mnewman@stct.com

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