Harmonic Selected for the Netherlands' Largest Digital Terrestrial TV Service

Harmonic Inc. (NASDAQ:HLIT) today announced that Nozema ServicesN.V., the largest nationwide terrestrial broadcaster in TheNetherlands, is deploying a complete high performance digital TVsolution, encompassing the DiviCom(R) multi-service encoding platformand DiviTrack(TM) multiplexing solutions, for its DVB-T serviceupgrade which is scheduled to go live later in 2006. With thisdeployment, The Netherlands is expected to become the first country inEurope 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, oneof the leading telco operators in Europe, offering voice and dataservices in The Netherlands, Germany and Belgium. In combination withNozema Services' digital pay TV services, KPN will be able to offercompetitive triple play bundles throughout the country.

The migration to all-digital television, while offering thepromise of exciting new services and advanced features not possible orpractical with analog, typically results in each broadcaster receivinga reduced segment of the RF spectrum. Consequently, Nozema Servicesmust improve bandwidth efficiency in order to deliver its entirechannel lineup, currently encompassing 23 TV and 18 radio channels,and to over time provision a more diverse portfolio of services withinthe available bandwidth. The high performance and versatility ofHarmonic's DiviCom encoders -- in particular, the simple migrationpath from MPEG-2 to MPEG-4 AVC (H.264) -- make it possible for toNozema Services to consistently remain at the technological forefrontin the digital domain.

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

Nozema Services operates a central headend and 11 regionaltransmission facilities currently reaching 65 percent of the country'shomes, necessitating the efficient aggregation and distribution of thecontent to the various locations, as well as integrated management ofits infrastructure. Nozema Services will utilize Harmonic's versatileDiviTrackIP closed-loop distributed statistical multiplexing solutionto dynamically allocate bandwidth to each program according tocomplexity of the video and facilitate the creation of localizedchannel lineups. The industry's first IP-based statisticalmultiplexer, DiviTrackIP is a proven solution that today supportsthousands of variable bit-rate channels around the world.

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

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

About Nozema Services/KPN

Nozema Services designs, builds, manages and operates transmissionnetworks and head-ends for broadcasting and telecommunications. Morethan 16 million people rely on Nozema Services for the day to dayreception of their radio and television programs through more than 150stations. Nozema Services was the first company to design andimplement a network for digital television based on portable indoorreception.

At the beginning of 2006 the Dutch State and KPN Royal DutchTelecom reached agreement for KPN to acquire all shares in NozemaServices. KPN will now accelerate the nationwide rollout of itsdigital ether television service, offering Dutch consumers analternative to cable before year-end. The acquisition guaranteesNozema Services' future, also once current analogue TV services ceasefollowing the migration to digital technologies. KPN repeats its offerto digitally broadcast Dutch national and regional public radio and TVstations free to air.

KPN provides telephone, Internet and television services topersonal customers through its fixed network in The Netherlands. Forbusiness 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 businesscustomers, we offer mobile services in The Netherlands, Germany,Belgium and western Europe. As of 31 December 2005, we served 6.9million fixed-line subscribers and 2.2 million Internet customers inThe Netherlands as well as 20.8 mobile customers in Germany, TheNetherlands and Belgium, while we employed 29,286 individuals (26,598FTEs).

About Simac Broadcast

As a solution provider and system integrator, Simac Broadcastgives customers the unique opportunity to choose the bestconfiguration of products in a multi-vendor environment. By usingquality products from industry leaders, Simac Broadcast is able tocreate custom solutions that utilize the best of the best, allowingfor choice at every level of the solution.

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

About Harmonic Inc.

Harmonic Inc. is a leading provider of digital video, broadbandoptical networking and IP delivery systems to cable, satellite,telecom and broadcast network operators. Harmonic's openstandards-based solutions for the headend through the last mile enablecustomers to develop new revenue sources and a competitive advantageby offering powerful interactive video, voice and data services suchas video-on-demand, high definition digital television, telephony andInternet access.

Harmonic (NASDAQ:HLIT) is headquartered in Sunnyvale, Californiawith R&D, sales and system integration centers worldwide. TheCompany's customers, including many of the world's largestcommunications providers, deliver services in virtually every country.Visit www.harmonicinc.com for more information.

This press release contains forward-looking statements within themeaning of Section 27(A) of the Securities Act of 1933 and Section21(E) of the Securities Exchange Act of 1934, including statementsrelated to: the deployment of DiviCom encoding solutions, the DVB-Tservice upgrade which is scheduled to go live later in 2006, theexpectation that the Netherlands will become the first country inEurope to discontinue the transmission of analog over-the-airtelevision, KPN's ability to offer competitive triple play bundles andNozema's use of Harmonic's DiviTrackIP.

Our expectations and beliefs regarding these matters and thefeatures and anticipated benefits of the DiviCom multi-serviceencoding solution may not materialize, and actual results could differmaterially from those projected. The forward-looking statementscontained in this press release are also subject to other risks anduncertainties, including those more fully described in Harmonic'sfilings with the Securities and Exchange Commission including itsrecent Reports filed on Form 10-K and Form 10-Q. Harmonic does notundertake to update any forward-looking statements.

EDITOR'S NOTE -- Product and company names used herein aretrademarks or registered trademarks of their respective owners.