Press Release

    Longstanding Customer Delivers Industry-Leading Picture Quality
    with Harmonic's State-of-the-Art DiviCom(R) Electra(R) Encoding
                             Technologies

SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 20, 2008--Harmonic Inc. (NASDAQ:HLIT) today announced that Bell Aliant (TSX: BA.UN) has selected Harmonic's industry-leading DiviCom(R) Electra(R) 5400 standard definition (SD) encoders for an MPEG-4 AVC (H.264) upgrade that enables Bell Aliant to enhance its Aliant TV video service for customers throughout the Atlantic provinces of Canada. Bell Aliant is one of North America's most innovative IPTV providers and with this upgrade becomes the first telco operator in Atlantic Canada to offer an MPEG-4 based service. The IP-based Electra platform delivers ultra-high video quality at ultra-low bit rates, enabling Bell Aliant to further enhance the viewing experience. Bell Aliant was one of the first North American telcos to launch a commercial IPTV service, and has selected Harmonic's best-in-class encoding technologies for use in its headend facility in Saint John, New Brunswick.

Bell Aliant's IPTV service provides over 300 digital television and audio channels to major urban centers throughout Atlantic Canada, including Halifax, Nova Scotia and St. John's, Newfoundland, as well as Moncton, Saint John, and Fredericton, New Brunswick. With this upgrade, Aliant's entire channel line-up is now operating on MPEG-4 technology. Harmonic is a leading provider of IPTV over DSL solutions, providing real-time and on-demand video delivery solutions to more than 100 telco operators serving over four million subscribers worldwide.

"By transitioning to an MPEG-4 network, Aliant is investing in a platform for the future which brings even higher quality video to our Aliant TV customers," stated Kevin Hastings, Chief Architect of Broadcasting Services, Bell Aliant. "Bell Aliant is committed to offering its customers more value, choice and convenience, and our next-generation IP network gives us tremendous flexibility in achieving these objectives. This upgrade allows our customers to simultaneously watch Aliant TV on up to three TV sets in their homes, while enjoying a superior viewing experience. Given our aggressive near-term and long-term objectives, Harmonic was the logical choice for this network upgrade."

"Harmonic offers a broad range of highly innovative solutions for telco operators, and leads the industry in pioneering highly efficient advanced compression," said Matt Aden, Vice President of Worldwide Sales and Service for Harmonic Inc. "Bell Aliant is a successful DSL-based IPTV operator and long-standing Harmonic partner. Aliant's ongoing selection of our best-in-class digital video technologies is a reflection of their focus on delivering higher quality video services and our commitment to remaining at the forefront of IPTV solutions."

Harmonic's single rack unit Electra 5400 platform delivers up to four MPEG-4 AVC SD channels and simultaneously generates up to four low resolution services for picture-in-picture or multi-channel mosaic applications. Key benefits include ultra-low bit rate encoding and outstanding video quality, support for an all-IP infrastructure, and advanced audio format support. Harmonic's NMX Digital Service Manager(TM)--previously installed by Bell Aliant and upgraded as part of this project--delivers a powerful set of tools for managing digital video and audio services, greatly simplifying mass configuring, monitoring and automated redundancy, in both centralized and distributed architectures.

About Bell Aliant

Bell Aliant (TSX: BA.UN) is one of North America's largest regional communications providers. Through its operating entities it serves customers in six Canadian provinces with innovative information, communication and technology services including voice, data, Internet, video and value-added business solutions. Through its xwave offices, Bell Aliant also provides IT professional services in Canada and the US. Bell Aliant's 10,000 employees are committed to deliver the highest quality of customer service, choice and convenience.

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 may contain 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: enhancing the Aliant TV video service and the viewing experience, investing in a platform for the future, and Harmonic's commitment to remaining at the forefront of IPTV solutions.

Our expectations and beliefs regarding the capabilities of Harmonic's Electra 5400 encoders and the anticipated benefits for Bell Aliant 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 Inc.
             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.