Press Release

SUNNYVALE, Calif., Sep 5, 2002 (BUSINESS WIRE) --

New Systems Expand Service Options and Revenue Potential While Protecting Existing Network Infrastructure Investments

Harmonic Inc. (Nasdaq: HLIT), a leading provider of standards-based digital video and transport systems, will unveil practical solutions that expand the service portfolio and revenue generating capabilities of cable, satellite, telecom and terrestrial broadcast operators. A practical solution is one that reduces operating costs, maximizes revenue and accelerates time to market. In addition, it increases network efficiency, flexibility and scalability, while leveraging existing infrastructure investments. Harmonic will feature digital video and IP-based solutions as well as other Practical Solutions for a Digital World(SM) at IBC2002 in its stand #1.361.

"As service providers align their network infrastructure to fully support their core business directions, Harmonic's purpose is to help them maximize results. Our solutions not only generate new revenue opportunities, but also minimize the associated deployment and operational costs," said Dr. Yaron Simler, President of Harmonic's Convergent Systems Division. "At IBC, we are showcasing practical solutions that optimize the value our customers realize from their investments in systems, people and time. These solutions, which fit into virtually any service provider network, enhance the return on existing investments as well as provide a growth path for future expansion."

    Harmonic to Introduce New Video-Over-IP Transport Solutions

As operators around the world evolve their network infrastructure, they are aggressively embracing open standards-based systems to realize the flexibility and economics long available to data and voice networks. Harmonic is building on its success in Gigabit Ethernet-based video-on-demand transport/distribution and video-over-DSL by introducing new video-over IP solutions for the cable and contribution markets. These practical solutions enable network operators to drive open standards-based transport more broadly across their existing distributed network environment.

Harmonic will also unveil new video-over-IP solutions for the telecom market. These MPEG-2 systems enhance the viability and revenue potential of DSL as a multi-service (video, voice and data) delivery platform. Harmonic's solutions enable telecom operators to introduce competitive new video-oriented services and reach more customers through their existing network infrastructure.

Programming distribution and acquisition models are evolving to more efficiently target content to an audience and maximize the revenue potential. Harmonic will be introducing flexible new solutions that allow broadcasters to more easily regionalize their offerings and to generate new value from local content while reducing capital expenditures.

Harmonic's commitment to open standards will be demonstrated through the range of DVB compliant systems on display in its IBC stand.

    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 practical solutions that expand the service portfolio and revenue-generating capabilities of operators, increasing network efficiency, flexibility and scalability, minimizing deployment and operational costs, enhancing the return on existing investments, providing a growth path for future expansion, embracing open standards-based solutions, introducing new video-over-IP solutions, enhancing the viability and revenue potential of DSL, evolving programming models, and allowing broadcasters to regionalize their offerings and generate new value. 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 Securities and Exchange Commission, 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 
                  (Media Relations for Harmonic)
                  Dawn Danaher, 714/378-5841 
                  danaher@ariesmarketmasters.com

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