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Harmonic Joins MPEG-4 Industry Forum to Advance Adoption of Emerging Digital Video Compression Standard

- Leader in MPEG-2 Encoding Systems Affirms Support for H.264 / MPEG-4 AVC -

Amsterdam, Netherlands - September 12, 2002 - IBC2002 Stand #1.361 - Harmonic Inc. (Nasdaq: HLIT) today announced its membership in the MPEG-4 Industry Forum (M4IF) and its endorsement of the emerging standard H.264 / MPEG-4 AVC (Advanced Video Coding), resulting from the combined efforts of the ISO and ITU standards committees.

“The MPEG-4 Industry Forum is very pleased to have Harmonic join its organization. Harmonic has an industry-wide reputation for MPEG encoding and processing excellence,” said Rob Koenen, President of the MPEG-4 Industry Forum. “Their endorsement and ongoing support adds significant momentum to the adoption of MPEG-4, including the upcoming H.264 / MPEG-4 AVC part, as the next global standard for digital video applications including broadcast television.”

Harmonic’s experience in developing industry-leading MPEG-2 systems allows it to carry forward advances in compression techniques—such as noise reduction, video preprocessing and analysis, motion estimation, video quality optimization algorithms and statistical multiplexing—into future MPEG-4 products. In digital video networks where picture quality, reliability and low bit rates are even more critical, H.264 / MPEG-4 AVC—also known as H.26L, JVT (Joint Video Team) codec, and MPEG-4 Part 10—promises significant advantages over existing MPEG-2 technology. New levels of compression efficiency inherent in H.264 / MPEG-4 AVC coupled with the innovative compression techniques developed by Harmonic over the past 10 years, will make broadcast quality digital video with bit-rates under one megabit per second (Mbps) a reality.

“We believe the new part 10 of the MPEG-4 specification will further strengthen the value of this open standard, providing a solid platform for delivering next-generation broadcast quality video solutions. In anticipation of this, joining the MPEG-4 Industry Forum is a natural and logical step for Harmonic, ” said Dr. Yaron Simler, President of Harmonic’s Convergent Systems Division. “MPEG-2 will still be an important standard for the industry and, as such, Harmonic will continue to enhance its MPEG-2 product lines to service the growing needs of our large installed base.”

Harmonic Extends Commitment to Standards
Harmonic, a long time advocate for industry standards, remains fully committed to standards-based solutions. By offering products based on standards such as MPEG-2, IP and Gigabit Ethernet and now MPEG-4, Harmonic enables its customers to select systems from best-of-breed vendors, rendering greater flexibility and value.

While Harmonic is moving to MPEG-4 in time to support early adopter deployments, Harmonic will continue to actively support MPEG-2 for the foreseeable future. Harmonic’s compression techniques can be applied to both MPEG-2 and H.264 / MPEG-4 AVC, making it possible to offer standards-based products that support the needs of both existing and prospective customers. At the appropriate time and on a timetable that makes sense in their business context, Harmonic’s customers may choose from several migration strategies to provide a smooth transition to the new technology.

About MPEG-4
MPEG-4 is the interactive coding standard for all digital multimedia platforms and was developed by the same "Moving Picture Experts Group" that designed MPEG-2 (the digital television standard), MPEG-1 and its Layer III audio system (MP3). Being object-based and extending beyond video and audio, MPEG-4 supports rich, interactive, standards-based multimedia from low bandwidths to transparent quality. H.264 / MPEG-4 AVC is part 10 of the MPEG-4 standard, extending the whole MPEG toolbox into the next generation of coding efficiency.

About the MPEG-4 Industry Forum
The objective of the MPEG-4 Industry Forum is “to further the adoption of the MPEG-4 Standard, by establishing MPEG-4 as an accepted and widely used standard among application developers, service providers, content creators and end users.” For more information, visit www.m4if.org.

About Harmonic Inc.
Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access.

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.

Insert FLS here...This press release contains 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 the adoption of MPEG-4 as the next global standard for digital video applications, the carry forward of advances in compression techniques into future MPEG-4 products, the significant advantages of MPEG-4 over existing MPEG-2 technology, broadcast quality digital video with bit-rates under 1 megabit per second, MPEG-4 providing a solid platform for next-generation solutions, and continued enhancement of MPEG-2 products. In addition, actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth in documents that Harmonic files with the Securities and Exchange Commission, including reports on Form 10-K and 10-Q.

Editor's Note: Product and company names used here are trademarks or registered trademarks of their respective companies.

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