Press Release

    SUNNYVALE, Calif.--(BUSINESS WIRE)--June 27, 2006--

  Nozema Services to Deploy High Performance DiviCom(R) Multi-Service
   Encoding Solutions as The Netherlands Becomes First in Europe to
               Launch Country-Wide All-Digital Broadcast

Harmonic Inc. (NASDAQ:HLIT) today announced that Nozema Services N.V., the largest nationwide terrestrial broadcaster in The Netherlands, is deploying a complete high performance digital TV solution, encompassing the DiviCom(R) multi-service encoding platform and DiviTrack(TM) multiplexing solutions, for its DVB-T service upgrade which is scheduled to go live later in 2006. With this deployment, The Netherlands is expected to become the first country in Europe to discontinue transmission of analog over-the-air television, allowing spectrum to be reclaimed for other communications services. Nozema Services was recently acquired by KPN Royal Dutch Telecom, one of the leading telco operators in Europe, offering voice and data services in The Netherlands, Germany and Belgium. In combination with Nozema Services' digital pay TV services, KPN will be able to offer competitive triple play bundles throughout the country.

The migration to all-digital television, while offering the promise of exciting new services and advanced features not possible or practical with analog, typically results in each broadcaster receiving a reduced segment of the RF spectrum. Consequently, Nozema Services must improve bandwidth efficiency in order to deliver its entire channel lineup, currently encompassing 23 TV and 18 radio channels, and to over time provision a more diverse portfolio of services within the available bandwidth. The high performance and versatility of Harmonic's DiviCom encoders -- in particular, the simple migration path from MPEG-2 to MPEG-4 AVC (H.264) -- make it possible for to Nozema Services to consistently remain at the technological forefront in the digital domain.

"As we contemplated the upgrade of our transmission infrastructure, the ability to deliver a superior experience today, and at the same time position ourselves to better enable the digital television services of tomorrow was critically important," said Rob Timmermans, Managing Director of Nozema Services. "Harmonic's efficient DiviCom encoding and DiviTrackIP(TM) statistical multiplexing solutions optimize our use of the available spectrum, giving us the latitude to add new MPEG-4 AVC-based standard and high definition television channels in the future. Furthermore, by moving to Harmonic's IP-based digital video headend, we benefit from better scalability, versatility and picture quality, as well as the ability to more effectively manage our distributed environment."

Nozema Services operates a central headend and 11 regional transmission facilities currently reaching 65 percent of the country's homes, necessitating the efficient aggregation and distribution of the content to the various locations, as well as integrated management of its infrastructure. Nozema Services will utilize Harmonic's versatile DiviTrackIP closed-loop distributed statistical multiplexing solution to dynamically allocate bandwidth to each program according to complexity of the video and facilitate the creation of localized channel lineups. The industry's first IP-based statistical multiplexer, DiviTrackIP is a proven solution that today supports thousands of variable bit-rate channels around the world.

"A key issue for service providers such as KPN and Nozema Services is the steadily escalating competition with cable and other new service providers," said Frank Kessaratos, Vice President of International Sales and Service for Harmonic Inc. "The multi-service DiviCom Electra(TM) encoders enable KPN to introduce a triple play solution that can expand to include compelling new services, such as video to mobile devices, as the demand for anytime, anywhere services increases. This is the reason DiviCom encoders are selected more often by top tier service providers than any other brand and power many of the world's most innovative services, including the world's first service to transition from MPEG-2 to MPEG-4 AVC via a firmware upgrade and the first all MPEG-4 AVC service."

The solution is being deployed in conjunction with Simac Broadcast, a leading system integrator in The Netherlands. Harmonic and Simac have worked together for several years on a range of projects that enable the delivery of best-in-class digital video and broadband services to customers throughout the region.

About Nozema Services/KPN

Nozema Services designs, builds, manages and operates transmission networks and head-ends for broadcasting and telecommunications. More than 16 million people rely on Nozema Services for the day to day reception of their radio and television programs through more than 150 stations. Nozema Services was the first company to design and implement a network for digital television based on portable indoor reception.

At the beginning of 2006 the Dutch State and KPN Royal Dutch Telecom reached agreement for KPN to acquire all shares in Nozema Services. KPN will now accelerate the nationwide rollout of its digital ether television service, offering Dutch consumers an alternative to cable before year-end. The acquisition guarantees Nozema Services' future, also once current analogue TV services cease following the migration to digital technologies. KPN repeats its offer to digitally broadcast Dutch national and regional public radio and TV stations free to air.

KPN provides telephone, Internet and television services to personal customers through its fixed network in The Netherlands. For business customers we provide a range of services, from voice, Internet and data services to full-managed outsourced ICT solutions, in The Netherlands and internationally. For personal and business customers, we offer mobile services in The Netherlands, Germany, Belgium and western Europe. As of 31 December 2005, we served 6.9 million fixed-line subscribers and 2.2 million Internet customers in The Netherlands as well as 20.8 mobile customers in Germany, The Netherlands and Belgium, while we employed 29,286 individuals (26,598 FTEs).

About Simac Broadcast

As a solution provider and system integrator, Simac Broadcast gives customers the unique opportunity to choose the best configuration of products in a multi-vendor environment. By using quality products from industry leaders, Simac Broadcast is able to create custom solutions that utilize the best of the best, allowing for choice at every level of the solution.

Simac Broadcast offers a range of services after the initial consultancy period. Simac Broadcast takes on an end to end 'Turnkey' responsibility, puts the working solution into service mode and then monitors it with their own management system. Simac Broadcast is headquartered in The Netherlands and has regional support offices in the Mediterranean, the United Kingdom, India, Singapore and South America. For more information, please visit www.simacbroadcast.com

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: the deployment of DiviCom encoding solutions, the DVB-T service upgrade which is scheduled to go live later in 2006, the expectation that the Netherlands will become the first country in Europe to discontinue the transmission of analog over-the-air television, KPN's ability to offer competitive triple play bundles and Nozema's use of Harmonic's DiviTrackIP.

Our expectations and beliefs regarding these matters and the features and anticipated benefits of the DiviCom multi-service encoding solution 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, 408-543-2392 (Media Relations)
             sarah.lum@harmonicinc.com
             or
             StreetConnect
             Michael Newman, 408-542-2760 (Investor Relations)
             hlit@stct.com

    SOURCE: Harmonic Inc.