Harmonic's Industry-Leading Solutions Deployed for New IPTV Service in Germany; HanseNet Extends Alice Service With Digital TV Powered by DiviCom(R) MPEG-4 AVC Encoders

Harmonic Inc. (Nasdaq:HLIT) today announced thatHanseNet Telekommunikation GmbH, a wholly owned subsidiary of TelecomItalia, is using Harmonic's MPEG-4 AVC (H.264) video solutions todeliver a range of digital TV services as part of its Alice brand. Theadvanced compression capabilities of Harmonic's industry-leadingDiviCom(R) encoders make it possible to distribute video service overlonger distances and via bandwidth constrained links while maintaininga broadcast-quality picture. The new TV service is being launched inHamburg, Germany, first and rolled out country-wide over the comingmonths, and represents the first large-scale, real-time broadcast IPTVover ADSL service in the country. By adding TV to its portfolio, Aliceis now able to offer a range of telephone, Internet and televisionbundles that are expected to better attract and retain customers.

Harmonic provided an integrated solution that is fully compatiblewith Alice's existing infrastructure, meeting the immediate need forvideo delivery while also providing room to scale the service in stepwith demand. The new Harmonic-based headend encompasses highperformance standard definition DiviCom real-time encoders for lowbit-rate MPEG-4 AVC video as well as the ProView(TM) receivers anddecoders for scalable content acquisition. HanseNet also uses theversatile NMX Digital Service Manager(TM) for advanced monitoring andcontrol, ensuring the highest levels of video quality and serviceavailability. Alice's new Harmonic-based headend is provisioning anextensive range of services, including 100 channels of broadcasttelevision.

"As communications services converge, our customers are lookingfor a differentiated offering from a single provider," said MicheleNovelli, Marketing Director of HanseNet. "We recognize that toincrease subscriber satisfaction and loyalty, we must continue toinnovate and provide a best-in-class service by integrating broadcastand on-demand TV with our existing Alice voice and data packages.Harmonic's impressive record of technical innovation and IPTVexpertise were key to reducing implementation risk and operationalcomplexity. The compression capabilities, video quality andflexibility of the DiviCom encoding platform give us a tremendousadvantage today and greater latitude to introduce new video servicesin the future."

An intensifying competitive environment combined with changingcustomer preferences means moving beyond a "me too" broadcast TVservice is critical for long-term success. Telcos are uniquelypositioned to leverage an IP-based infrastructure to provision ananytime, anywhere just for me TV(SM) experience. Harmonic is at theforefront of this paradigm shift with advanced digital headendsolutions, such as the DiviCom Electra(TM) 5000 Multi-Service Encoder,that streamline the IPTV infrastructure and enable new features suchas picture-in-picture and dynamic multi-channel mosaics.

"Alice's new IPTV service is an innovative integration ofcommunication services that addresses the broader needs andexpectations of the subscriber," said Frank Kessaratos, Vice Presidentof EMEA and Asia-Pacific Sales for Harmonic Inc. "DiviCom encoders,which generate high quality digital video at ultra-low bit-rates inbroadcast and on-demand applications, are an ideal solution for IPTVservice providers, like Alice, who must deliver several servicessimultaneously into the home, often when bandwidth is at a premium.With several years of pioneering experience in IPTV and powering morechannels for top tier telco operators than any other vendor, Harmonicensures Alice has a solid technology foundation for deliveringexceptional IP-based video services well into the future."

Harmonic's industry-leading solutions reduce implementation riskand costs while accelerating time-to-market and maximizing servicequality. Leading telcos around the world have selected Harmonic fortheir ground-breaking IPTV implementations including the firstlarge-scale MPEG-2 IPTV service, the first all MPEG-4 AVC service andthe first live service to transition from MPEG-2 to MPEG-4 via afirmware upgrade. As a result, today DiviCom encoders are deliveringmore than 2,300 channels of IP-based TV, nearly twice the combinedtotal of the two vendors commonly considered Harmonic's maincompetitors.

About HanseNet/Alice

HanseNet with its brand Alice is one of the fastest growingtelecommunication providers in Germany and offers telephone, DSL andInternet services to both business and private customers. Alice standsfor simplicity and clarity of its product design, favorable andcustomer-orientated tariff structures and fair services. Up until nowmore than 570,000 private and business customers comfortably use theservices of Alice and Alice Business (business customers only) inGermany.

Visit www.alice-dsl.de or www.alice-business.de for moreinformation.

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, California,with 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: rolling out country-wide over the coming months, providingroom to scale the service in step with demand, greater latitude tointroduce new video services in the future and moving beyond a "metoo" broadcast TV service being critical for long-term success.

Our expectations and beliefs regarding these matters may notmaterialize, and actual results could differ materially from thoseprojected. The forward-looking statements contained in this pressrelease are also subject to other risks and uncertainties, includingthose more fully described in Harmonic's filings with the Securitiesand Exchange Commission including its recent Reports filed on Form10-K and Form 10-Q. Harmonic does not undertake to update anyforward-looking statements.

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