Press Release

General Dynamics Upgrades the Pentagon's Video Infrastructure With Harmonic's Digital Video and Broadband Access Solutions

October 11, 2007
    Harmonic's Superior Video Processing, Edge and Access Systems
  Deployed for Cable Network Renovation Project at U.S. Department of
                         Defense Headquarters

NEW YORK--(BUSINESS WIRE)--Oct. 11, 2007--Harmonic Inc. (NASDAQ:HLIT) today announced that General Dynamics (NYSE:GD) has implemented Harmonic's market-leading IP-based digital video and HFC broadband access solutions to upgrade the cable video system operated at the Pentagon, the headquarters of the United States Department of Defense. The project included an upgrade of the entire video headend and expansion of the transport infrastructure to support more standard definition (SD) and high definition (HD) video channels as well as on-demand video applications. General Dynamics is a leader in providing mission-focused IT solutions to government and commercial customers worldwide. The Pentagon is an existing customer of Harmonic's reliable and high quality encoders, multiplexers and optical transport solutions.

The headend replacement at the Pentagon encompassed a full range of digital video solutions from Harmonic, including multi-channel DiviCom(R) Ion(TM) MPEG-2 SD encoders, MV 500 MPEG-2 HD encoders, NSG(TM) 9116 edgeQAMs, the ProStream(TM) 8000 digital video mosaic solution and NMX Digital Service Manager(TM). The HFC expansion provided by Harmonic included MAXLink(TM) transmitters and amplifiers, PWRBlazer(TM) nodes and digital return path systems.

News and information access are critical to daily operations for the more than 23,000 users at the Pentagon. The way in which users can access and experience their video content is significantly improved by the network enhancements, particularly the addition of the multi-channel mosaic capability and the edgeQAM systems for on-demand video delivery. The new encoders provide superior bandwidth efficiency, and the entire headend and transport upgrade was simple to incorporate into the existing infrastructure, providing a seamless transition.

"General Dynamics and the Pentagon needed a reliable, end-to-end solution for video processing at the headend and delivery across the HFC network," said Matt Aden, Vice President of Worldwide Sales and Service for Harmonic Inc. "The successful upgrade is an affirmation of the versatility, quality and performance of Harmonic's digital video and HFC transport solutions, which can be deployed in any cable network architecture. Our MPEG-2 and MPEG-4 AVC (H.264) SD and HD systems incorporate leading edge technology while leveraging years of experience, and are used by service providers around the world to deliver the highest quality broadcast and on-demand video services."

About General Dynamics

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,000 people worldwide and had 2006 revenues of $24.1 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. More information about the company is available online at www.generaldynamics.com.

About Harmonic Inc.

Harmonic Inc. is a leading provider of versatile and high performance video solutions that enable service providers to efficiently deliver the next generation of broadcast and on-demand services including high definition, video-on-demand, network personal video recording and time-shifted TV. Cable, satellite, broadcast and telecom service providers can increase revenues and lower operational expenditures by using Harmonic's digital video, broadband optical access and software solutions to offer consumers the compelling and personalized viewing experience that is driving the business models of the future.

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 the features and capabilities of the Harmonic digital video and broadband access solutions provided to General Dynamics and the Pentagon.

Our expectations and beliefs regarding these solutions and their anticipated benefits for General Dynamics and the Pentagon 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.


    CONTACT: Harmonic
             Sarah Lum, +1-408-543-2392 (Media Relations)
             sarah.lum@harmonicinc.com
             or
             StreetConnect for Harmonic
             Michael Newman, +1-408-542-2760 (Investor Relations)
             hlit@stct.com

    SOURCE: Harmonic Inc.