Press Release

Harmonic’s Award-Winning MPEG-4 Encoding, Stream Processing, and Network Management Systems Power Satellite Operator’s New HD Service

SAO PAULO--(BUSINESS WIRE)--Aug. 10, 2009-- Harmonic Inc. (NASDAQ:HLIT) today announced that SKY Brasil Serviços Ltda., Brazil’s largest direct-to-home (DTH) satellite video service provider with nearly two million subscribers, has rolled out its new HDTV service based on Harmonic’s market-leading MPEG-4 AVC (H.264) digital video delivery solutions. Powered by Harmonic’s DiviCom Electra® 7000 encoders, ProStream™ 1000 stream processing platform with DiviTrackIP™ statistical multiplexing, and NMX Digital Service Manager™, the new service from SKY Brasil is the largest HDTV broadcast offering currently available in the country.

“We chose Harmonic to power our new SKY HDTV offerings because the company provides the highest quality and most feature-rich HD video solutions in the industry,” said Luis Otavio Marchezetti, Director of Engineering for SKY Brasil. “Harmonic’s encoding and statistical multiplexing solutions offer greater bandwidth efficiency and video quality in a dense platform with low power consumption requirements. With the Harmonic products as a foundation, we have been able to put in place an infrastructure that will support expansion for the future.”

As the operator of Brazil’s largest digital DTH service, SKY Brasil is the only broadcaster to provide service to viewers throughout the country. With the addition of the HD channels, SKY Brasil placed a priority on selecting a single vendor that could provide a complete, comprehensive solution for compression, statistical multiplexing, and network management needs. Harmonic’s award-winning DiviCom Electra 7000 AVC encoders enable SKY Brasil to efficiently deliver up to four full resolution variable bit rate (VBR) services and simultaneous low resolution outputs within a single 1-RU chassis rack unit.

The modular 1-RU ProStream 1000 stream processing platform handles multiplexing, scrambling, and advanced processing of the MPEG streams, while NMX Digital Service Manager offers SKY Brasil a powerful set of tools for simple network configuration, monitoring and automated redundancy.

“SKY Brasil is a great example of how the right digital infrastructure can drive a broadcasting business forward into a new era of market and technology leadership,” said Richard Phelps, Harmonic’s Vice President of Sales for Latin America. “We’re pleased that Harmonic’s technology has been selected to provide a complete digital video delivery solution, from compression and statistical multiplexing to network management, to power SKY Brasil’s HD offerings and offer the high quality that SKY viewers have come to expect.”

Harmonic will demonstrate its latest generation of high performance digital video and HFC access solutions at stand #G8 during the ABTA exhibition in Sao Paulo, Brazil, taking place from August 11-13.

About SKY Brasil Serviços Ltda.

SKY Brasil operates Latin America's largest high definition television service. With approximately 1.800.000 subscribers, it is the leading satellite television provider, but also is the second largest MSO (Multiple System Operator). In Brasil, DIRECTV Group has 76% ownership of SKY, while Organizações Globo has 24%.

About Harmonic Inc.

Harmonic Inc. is redefining video delivery with the industry’s most powerful solutions for live and on-demand content preparation and distribution of video to TVs, PCs and mobile devices. Harmonic’s 20 years of technical innovation and market leadership enable the Company to offer a unique and comprehensive solution portfolio—including encoding, transcoding, content preparation, stream processing, asset management, edge processing, and delivery. Broadcast, cable, Internet, mobile, satellite and telecom service providers around the world choose Harmonic’s IP-based digital video, software, and broadband edge and access solutions. Using these award-winning and industry-leading solutions, operators can reduce costs and differentiate their services by offering consumers a higher quality, personalized multi-screen experience.

Harmonic (NASDAQ:HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide. The Company’s customers 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: putting in place an infrastructure that will support expansion for the future, and driving a broadcasting business forward into a new era of market and technology leadership.

Our expectations and beliefs regarding the capabilities of Harmonic’s digital video delivery solutions and the anticipated benefits for SKY Brasil 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, +1-408-543-2392 (Media Relations)
sarah.lum@harmonicinc.com
or
StreetConnect
Michael Newman, +1-408-542-2760 (Investor Relations)
hlit@stct.com