Press Release

SUNNYVALE, Calif., Jan 12, 2006 (BUSINESS WIRE) -- Harmonic Inc. (Nasdaq:HLIT) today announced the FLXLink(TM) iCPE(TM) Commercial Services Gateway, an addressable device that facilitates the introduction and provisioning of value-added network access and managed services. The iCPE is ideal for hotels, schools, small and mid-size businesses, multiple dwelling units (MDU) and other applications requiring numerous independent outputs that are compatible with the existing CAT5 wiring at the user's premises. This new intelligent gateway device extends and works in conjunction with Harmonic's FLXLink family of scalable coarse wavelength division multiplexing (CWDM) transport solutions. In use today by cable and telecom operators worldwide, FLXLink systems are securely and cost-effectively delivering a range of services, including ultra high-speed Internet access and cell tower backhaul.

As cable MSOs seek to diversify their service offering and customer base, the FLXLink iCPE offers a versatile and high-performance way to utilize the current HFC network to increase their revenue potential. The addressability of the iCPE makes it possible for operators to dynamically set bandwidth rates, establish quality of service policies and gather important usage statistics. Up to 24 Ethernet ports are supported for multi-function and/or multi-customer use, ideal for serving MDUs. The iCPE is fully interoperable with other FLXLink products, including the 100-Mbps and 1-Gbps transmission solutions, providing highly efficient, scalable service transport.

"Now that it is possible to deliver seemingly limitless amounts of bandwidth to the commercial customer using Harmonic's FLXLink T1/E1, 100-Mbps and 1-Gbps transport solutions, operators need a simple yet intelligent device at the user's site to manage the provisioning of these high-speed services," said Sunil Frida, Commercial Services Solution Manager at Harmonic Inc. "The new FLXLink iCPE is an extremely effective solution that improves the overall quality of service, supports the remote monitoring and management of network activity, and allows bandwidth limits and policies to be dynamically updated. This enables operators to provide Internet access as well as VPN and VLAN support within a shared infrastructure while fully leveraging their existing HFC networks."

Key features of the FLXLink iCPE include a combination of up to two CAT5 (10/100/1000 BaseT) and/or 1 gigabit per second SFP high-speed inputs, port-based traffic policing, IEEE 802.1Q VLAN support and quality of service based on the IEEE 802.1P standard. The system supports multiple management approaches such as a Telnet interface, browser-based console, SNMP for integration into network management systems and a serial console interface for onsite personnel.

Easy to deploy, manage and scale, FLXLink T1/E1, 100-Mbps and 1-Gbps CWDM access solutions enable operators to generate additional revenue using their existing network infrastructure. FLXLink reduces the need for new large-scale fiber builds by aggregating up to ten commercial customers or sites on the same fiber used for residential broadband video services in the HFC access network. Since the network is completely passive between the operator and customer sites, operators have an extremely cost-effective solution that eliminates potential points of failure, increasing overall reliability and availability. Secure transport is provided via dedicated wavelengths for each customer or site.

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 centres 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 features and anticipated benefits of FLXLink iCPE.

Our expectations and beliefs regarding these matters and the features and anticipated benefits of FLXLink iCPE 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.

SOURCE: Harmonic Inc.

Harmonic, Inc.
Sarah Lum, 408-543-2392 (Media Relations)
sarah.lum@harmonicinc.com
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StreetConnect for Harmonic
Michael Newman, 408-542-2760 (Investor Relations)
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