Press Release

Kabel Deutschland Selects Broad Range of Digital Video Solutions from Harmonic

September 14, 2008
    Germany's Largest Cable Operator Invests in Next-Generation
   Digital Video Headend; Harmonic's Superior Technologies Chosen by
                      Leading Operators Worldwide

AMSTERDAM, Netherlands--(BUSINESS WIRE)--Sept. 14, 2008--Harmonic Inc. (NASDAQ:HLIT) today announced that Kabel Deutschland (KDG) has selected a suite of Harmonic's best-in-class encoding, re-encoding, multiplexing, scrambling, network management, and related training and support services for KDG's new IP-enabled headend located in Frankfurt. KDG is Germany's-and one of Europe's-largest cable operators, serving approximately 9 million subscribers in 13 of 16 German federal regions. The new headend enables KDG to extend the capacity of its existing network, while also providing a platform to support future growth and new digital, interactive, and on-demand services.

Harmonic's IP-based digital video solutions enable KDG to intelligently manage content delivery across its MPEG-2 network bringing immediate bandwidth and operational efficiencies. Harmonic's market leading DiviCom(R) Electra(R) 5000 standard definition (SD) encoders, ProStream(TM) 1000 stream processing platform with Mentor(TM) re-encoding technology, and DiviTrackIP(TM) statistical multiplexers are the key components of this new headend. These highly advanced solutions enable KDG to efficiently transport video, data and voice content to its regional headends throughout Germany, while also enabling the seamless expansion of KDG's existing triple play service.

"Kabel Deutschland operates a sophisticated and high quality video service," said Ian Graham, Vice President of EMEA Sales and Support for Harmonic Inc. "Harmonic's pioneering digital video and HFC access solutions have been successfully deployed by many of the world's largest and most prominent cable operators. The solutions selected by KDG include some of the most advanced IP-based MPEG-2 video delivery technologies available in the marketplace today, including the innovative DiviCom Electra 5000 encoder with DiviTrackIP distributed statistical multiplexing and the world's first integrated MPEG-2 re-encoding platform, the ProStream 1000 with Mentor technology."

Harmonic's flexible and highly efficient DiviCom Electra 5000 enables operators such as KDG to deliver additional MPEG-2 channels in high or low resolution format, within a given bandwidth, without compromising video quality. Harmonic's Mentor technology enables variable bit-rate (VBR) to constant bit-rate (CBR) conversion, or CBR-to-CBR video bit-rate adjustments, a key requirement for on-demand service delivery. Encoders and multiplexers can be connected via a switched IP wide area network using DiviTrackIP, the world's first all IP-based closed-loop statistical multiplexing solution, resulting in a more flexible, scalable and cost-effective network architecture. NMX Digital Service Manager(TM) provides KDG with complete management and control, greatly simplifying headend operations.

About Kabel Deutschland Kabel Deutschland (KDG) operates cable networks in 13 German states and supplies its services to approx. 9 million connected TV households in Germany. Kabel Deutschland is Germany's largest cable network operator. The company develops and markets new triple play offers for digital TV, high-speed Internet and telephone connection via cable. KDG offers an open digital TV platform for all program providers. The company operates the networks, markets cable connections and provides comprehensive services for all matters of cable connectivity. In fiscal year 2006/2007 (12 months ended March 31, 2007), Kabel Deutschland reported a total revenue of approx. EUR 1.1 billion. The company has around 2,700 employees.

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: enabling KDG to extend the capacity of its existing network and providing a platform to support future growth and new digital, interactive, and on-demand services.

Our expectations and beliefs regarding the capabilities of Harmonic's digital video solutions and the anticipated benefits for KDG 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: For 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.