Harmonic Supplies Video Compression and Stream Processing Solutions for AT&T CruiseCast™ Service

Thursday, March 26, 2009

High Performance DiviCom® Electra® Encoders and ProStream™ 1000 Stream Processing Platform Enable High Quality QVGA Video for Satellite TV to the Car

RaySat Broadcasting Corporation (RBC) today announced it has contracted with Harmonic Inc. (NASDAQ: HLIT) to provide video compression and stream processing solutions that enable delivery of the AT&T CruiseCastSM mobile TV service, an exciting new source of entertainment in family vehicles. AT&T CruiseCast is the breakthrough service that will provide 42 channels of satellite TV and radio to the vehicle rear seat entertainment system. Harmonic’s DiviCom® Electra® 5400 standard definition (SD) MPEG-4 AVC (H.264) encoders, ProStream™ 1000 stream processing platform and NMX Digital Service Manager™ were deployed as part of the solution. Terms of the agreement were not disclosed.

“The groundbreaking AT&T CruiseCast service promises to provide superior in-car entertainment and we’re proud we can contribute innovative technologies and enhancements in video quality, performance and the capabilities of our compression solutions to help create a memorable experience that heightens customers’ enjoyment,” said Nimrod Ben-Natan, vice president of product marketing, solutions and strategy for Harmonic. “We are also committed to working closely with strategic customers like RaySat Broadcasting Corporation to develop features that enable new business models and revenue-generating services. The support for mobile encoding formats on our Electra platform, announced in April 2008, reflects our leadership in video delivery technology for advanced applications such as the AT&T CruiseCast service.”

“To ensure our customers are getting a top-quality presentation of entertainment every time they’re in their vehicles watching the AT&T CruiseCast service, we needed the best compression technology available,” said Michael Grannan, Chief Operating Officer of RaySat Broadcasting Corporation. “The performance and flexibility of Harmonic’s DiviCom Electra encoders and stream processing solution makes it possible for us to deliver superior high quality video to the antenna receiver via satellite.”

Harmonic’s comprehensive range of IP-based broadcast and on-demand video delivery solutions enable service providers to provide a converged video experience, delivering high quality video to devices such as cars, mobile phones, personal computers, personal media players, IP-enabled set-top boxes and digital televisions.

AT&T CruiseCast mobile TV service will offer a robust lineup of 42 entertainment channels, 22 satellite TV and 20 radio channels, that will include a variety of kids and family, documentary, music, comedy, news and sports programming at launch. AT&T CruiseCast service will enable families, commuters and mobile professionals to watch the same type of television experience in the rear seat entertainment systems of their vehicles that they now have in their homes.

The AT&T CruiseCast service utilizes breakthrough technology that overcomes line-of-sight obstacles such as overpasses, buildings, trees or tunnels to deliver television programming to cars, non-commercial trucks and SUVs. This groundbreaking AT&T CruiseCast service was created through the collaboration of RBC and AT&T*, the world’s premier telecommunications company. RBC, a privately held U.S. company, is working with AT&T Business Development to introduce the new product to the marketplace.

The AT&T CruiseCast service is made consumer-friendly by the unique scaling down of satellite technology into the small pod-like antenna that affixes to the roof of vehicles. The antenna is paired with a receiver that is mounted in the vehicle and provides all video and audio connections to the appropriate vehicle systems, such as rear seat entertainment, vehicle audio system etc.

For more information, please go to www.cruisecast.com

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. as well as third party licensees under the AT&T brand and not by AT&T Inc.

About RaySat Broadcasting Corporation
RaySat Broadcasting Corporation (RBC) is a privately held U.S. company that was created to introduce In-Car Entertainment to the U.S. market under the licensed name “AT&T CruiseCast”. Headquartered in Dallas, Texas, RBC capitalizes on pioneering technology that has enabled the creation of a small compact antenna for use on cars, trucks and SUV’s that also provides continual coverage on-the-go thanks to an advancement that overcomes line-of-sight obstacles such as overpasses, buildings, trees or tunnels. The AT&T CruiseCast service is available in the 48 contiguous states and will offer 42 channels of entertainment programming. RBC will distribute AT&T CruiseCast via a network of automotive dealers, consumer electronics retailers, and other businesses that specialize in automotive accessories. For dealer/retail locations and additional information on RBC and AT&T CruiseCast, please visit www.cruisecast.com

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.

About AT&T 
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world’s most advanced IP-based business communications services and the nation’s leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of their three-screen integration strategy, AT&T operating companies are expanding their TV entertainment offerings. In 2009, AT&T again ranked No. 1 in the telecommunications industry on FORTUNE® magazine’s lists of the World’s Most Admired Companies and America’s Most Admired Companies. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

© 2009 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

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: providing 42 channels of satellite TV and radio to the vehicle rear seat entertainment system, promising to provide superior in-car entertainment, enabling new business models and revenue-generating services, and the mobile TV service offering a robust lineup of programming.

Our expectations and beliefs regarding the capabilities of Harmonic’s video compression and stream processing solutions and their benefits for RaySat Broadcasting Corporation and the AT&T CruiseCast service 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.