Harmonic Introduces Revolutionary New EdgeQAM Platform

Tuesday, August 24, 2010

Ultra-Dense NSG™ HectoQAM™ Universal EdgeQAM Sets New Benchmark with up to 648 QAMs in 2-RU; Incorporates New Technology to Enhance Efficiency and Flexibility

Harmonic Inc. (NASDAQ: HLIT) today strengthened its edgeQAM leadership position with the introduction of the NSG™ HectoQAM™ (NSG 9000-40G), the world’s first universal edgeQAM solution to deliver up to 648 QAMs per two-rack unit chassis. In addition to its pace-setting density, the groundbreaking NSG 9000-40G incorporates pioneering new technologies that significantly improve efficiency and ease of operation, including Harmonic’s new EQAM Virtualization™ software technology and frequency agility for flexible placement of QAMs across the spectrum.

The cost-effective NSG 9000-40G supports video-on-demand (VOD), broadcast, switched digital video (SDV), modular cable modem termination system (M-CMTS), DOCSIS 3.0 and cable IPTV services, providing unparalleled flexibility while lowering operational costs for cable operators. Customer shipments for the NSG 9000-40G are scheduled to begin in September 2010.

“Harmonic’s expertise and commitment to edgeQAM technology innovation has resulted in the introduction of several exciting and unique features with the new NSG 9000-40G solution. Operators can more easily upgrade to an ultra-compact platform thanks to its use of the same form factor as existing NSG systems and its ability to utilize the same network, integrate with the same back-office system, and enable flexible use of available spectrum. Furthermore, with the number of QAMs that can be supported using NSG 9000-40G technology—648 QAMs in 2-RU for 6 MHz networks or 486 for 8 MHz—Harmonic’s new solution offers more than double the density of any other solution available today,” said Yoav Derazon, Senior Manager, Cable Solutions and Strategy for Harmonic.

The system supports up to 36 QAMs per port, a density nearly 10 times greater than most existing edgeQAM deployments. This feature, along with the new frequency agility capability, is critical to support more VOD traffic, SDV and M-CMTS services, and reduces MSOs’ capital and operating expenses by significantly lowering requirements for power, cabling, rack space and cooling.

Harmonic’s new EQAM Virtualization software technology allows a single device to be operated as a number of virtual systems, simplifying management and integration with the cable operator’s existing back-office solution. The NSG 9000-40G’s 10-Gbps interfaces serve up to 40 Gbps input total, and can also function as 1-Gbps links. As a result, MSOs can leverage their existing investment in 1-Gbps IP network equipment, an advantage which is particularly relevant for SDV applications.

The new NSG 9000-40G mainboard and blades are used with the existing NSG 9000 chassis, allowing operators to leverage their existing hardware investment for added OPEX savings. NSG 9000-40G blades are hot-swappable, allowing for ease of management and flexible enhancement of the system without service down-time.

Harmonic’s NSG family of edgeQAMs—the world’s first, introduced in 2000—holds top market-share standing with more than one million QAMs deployed by cable service providers around the world, serving more than 50 million cable TV subscribers. The award-winning NSG solutions will be on display at Harmonic’s stand #1.C61 during IBC 2010 in Amsterdam, September 10-14.

About Harmonic Inc.
Harmonic Inc. is redefining video delivery with the industry’s most powerful solutions for delivering live and on-demand video to TVs, PCs and mobile devices. Harmonic’s 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 San Jose, 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.

Editor’s Note: Product and company names used herein are trademarks or registered trademarks of their respective owners.

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: pioneering new technologies that significantly improve efficiency and ease of operation; providing unparalleled flexibility while lowering operational costs for cable operators; customer shipments scheduled to begin in September 2010; and reducing MSOs’ capital and operating expenses by significantly lowering requirements for power, cabling, rack space and cooling.

Our expectations and beliefs regarding the capabilities of Harmonic’s NSG 9000-40G and the anticipated benefits for customers 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.