Date: 
Wednesday, April 16, 2008

DiviCom® Electra™ MPEG-4 AVC HD and SD Encoders Used for Innovative New DTT Service; Harmonic’s Electra MPEG-2 Encoders Power Satellite Service

 Harmonic Inc. (NASDAQ: HLIT) today announced that Television New Zealand (TVNZ) has deployed the market-leading DiviCom® Electra® 7000 high definition (HD) and Electra 5400 standard definition (SD) MPEG-4 AVC (H.264) encoders for the new Freeview digital terrestrial television (DTT) service launched this week. The new service is New Zealand’s first HD digital service, and is currently available to approximately 75 percent of homes nationwide. TVNZ selected the Harmonic compression solutions because of the Electra platform’s superior video quality at ultra-low bit-rates. Harmonic’s Electra 1000 MPEG-2 SD encoder is also utilized by TVNZ for its digital satellite pay TV service, launched in May 2007.

The Freeview service is one of the world’s first live HD and SD MPEG-4 AVC DTT services, and accelerates New Zealand’s migration to digital as the analog service shutoff approaches. TVNZ also utilizes Harmonic’s ProStream™ 1000 stream processing platform with DiviTrackIP™ distributed IP statistical multiplexing to further enhance bandwidth efficiency by dynamically adjusting bit-rates based on content complexity. Magna Systems, a leading system integrator in the region, implemented the system and will provide ongoing support and maintenance.

“In selecting a solution provider, we looked for a partner that could provide high quality HD and SD video while also minimizing bandwidth requirements,” said Doug Stevens, Transmission Manager for Television New Zealand. “The ability to implement a comprehensive and easy to manage monitoring system and redundancy switching were also important criteria. We extensively tested a number of solutions for this project. Harmonic met our requirements with the Electra encoding platform deployed for our satellite service in 2007, and once again for this important DTT launch, Harmonic’s solution came out ahead. Not only do the latest generation Harmonic encoders offer superior picture quality, but the whole solution is cost-effective, reliable and flexible.”

“High definition is becoming an increasingly important part of the video experience, whether for a pay-TV service or over the air,” said Tom Lattie, Director of Broadcast and Satellite Solutions for Harmonic Inc. “Harmonic is committed to enabling service providers around the world to continuously enhance their service portfolios. Television New Zealand is at the forefront of service innovation by offering households across the country this exciting new DTT service.”

More than 1,500 channels of HD H.264 video are currently powered by Electra 7000 HD encoders, which began shipping in late 2006. The multi-service Electra 7000 and 5400 encoders deliver up to four channels of full resolution video alongside four simultaneous low resolution outputs for applications including multi-channel mosaics and picture-in-picture. The platform’s efficient one rack-unit (1-RU) design reduces operators’ power consumption and costs while also saving valuable rack space. The Electra 1000 is a multi-channel MPEG-2 SD encoder that provides high quality, low bit-rate video for up to four channels in a compact platform. The entire digital video headend at TVNZ is monitored and controlled by Harmonic’s service-centric NMX Digital Service Manager™.

About Television New Zealand
TVNZ is New Zealand's biggest free-to-air broadcaster and is also the nation's television public broadcaster. We operate four channels, TVONE and TV2, and another two digital-only channels, TVNZ 6 and TVNZ 7, which are broadcast throughout the Freeview platform. As well, TVNZ runs an online "catchup TV" service called TVNZ on demand.

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 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: accelerating New Zealand’s migration to digital as the analog service shutoff approaches, and Magna Systems’ provision of ongoing support and maintenance.

Our expectations and beliefs regarding our compression solutions and their anticipated benefits for TV New Zealand 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.

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