Press Release

SUNNYVALE, Calif., Sep 18, 2002 (BUSINESS WIRE) -- Harmonic Inc. (Nasdaq:HLIT) today announced APT Satellite Holdings Limited (Stock Code: 1045 or ATS) ("APT") has significantly expanded the broadcast capacity of its existing satellites by deploying Harmonic's DiviCom(R) digital video encoders and statistical multiplexing systems. By fitting more television channels into the existing bandwidth, these highly efficient MPEG-2 video solutions enable APT to increase its revenue potential and the return on its satellite network investments while maintaining the original picture quality.

A leading provider of satellite network services throughout the People's Republic of China (PRC) and the Asia-Pacific region, APT leases capacity to content providers and other broadcast networks. International broadcasters such as Disney, HBO, Sony Pictures Entertainment, Hallmark Entertainment, Galaxy and Viacom are leasing bandwidth on APT's Apstar-I and Apstar IIR satellites while, at the same time, prominent regional broadcasters -- including CCTV, China Entertainment, One Leader and Po Hsin -- are leasing capacity on Apstar-IA.

Satellite network bandwidth, unlike that of a land-based network, is extremely expensive to upgrade once deployed. Typically, adding bandwidth means launching a new satellite. The advanced compression and noise reduction capabilities of Harmonic's DiviCom MPEG-2 encoders combined with Harmonic's powerful DiviTrackXETM statistical multiplexing increase the effective bandwidth of their existing network, yielding a more practical way to expand their revenue generating capacity. By implementing this Harmonic-based solution, APT was able to more than double the number of leasable channels it offers.

"We chose Harmonic for a number of reasons," said Mr. Chen Zhaobin, executive director and president of APT Satellite Holdings Limited. "First, the DiviCom encoders and statistical multiplexing systems enable us to increase our revenue generating capacity while providing excellent channel quality to our broadcast customers. Second, the Harmonic solution is MPEG-2/DVB compliant and fully meets our high standards. And third, Harmonic has provided exceptional support services in addition to a comprehensive system solution."

"In a competitive market, APT is enhancing the economics of its business and, at the same time, offering new options, such as managing the encoding systems, that reduce the internal operating costs for its broadcast customers, " said Dr. Yaron Simler, president of Harmonic's Convergent Systems Division. "By providing the encoders and statistical multiplexing equipment, APT is better able to support its customers' diverse broadcast requirements, while maximizing available bandwidth and maintaining the highest video quality. We look forward to working with APT as it further develops its service offerings."

    More about APT Satellite

APT Satellite Holdings Limited is a listed company in Hong Kong and New York. It provides high-quality services in satellite transponder, broadcasting and telecommunications for the broadcasting and telecommunication sectors. Through its Satellite Control Centre in Tai Po, Hong Kong, the Group currently operates three in-orbit geostationary satellites comprising APSTAR I, APSTAR IA and APSTAR IIR. Visit www.apstar.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, 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, enabling APT to increase its revenue potential and return on satellite network investments, increasing the effective bandwidth of the existing network, enabling APT to support their customers' diverse requirements, and working with APT to further develop their service offerings, 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 
                  Dawn Danaher, 714/378-5841 (Media Relations)              
                  danaher@keymaster.com                    
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                  AxiCom UK   
                  Stephen Orr, +44 (0)20 8600 4613 (Media Relations)    
                  stephen.orr@axicom.com         
                  or
                  StreetConnect  
                  Michael Newman, 408/542-2760 (Investor Relations) 
                  mnewman@stct.com               

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