Red Intercable’s dibox Digital Cable TV Service in Argentina Utilizes Harmonic’s H.264 Video Solutions

Tuesday, September 25, 2007

IP-Based Headend Solution Includes DiviCom® Electra™ Encoders, DiviTrackIP™ Statistical Multiplexing, Broadcast Network Gateway™ and NMX Digital Service Manager™

Harmonic Inc. (NASDAQ: HLIT) today announced that Red Intercable S.A., a leading content aggregator and video service provider for more than 235 independent cable operators in Argentina, has deployed Harmonic’s IP-based MPEG-4 AVC (H.264) digital video systems for the dibox national digital television service. Red Intercable is one of the world’s first cable service providers to deploy H.264-based standard definition (SD) video compression, a solution which enables the delivery of ultra-high quality video while enhancing bandwidth efficiency.

The new headend implemented at Red Intercable includes the DiviCom® Electra™ 5400 SD H.264 encoders and ProStream™ 1000 stream processing platform with DiviTrackIP™ distributed statistical multiplexing to more efficiently compress video services, which are then sent via satellite uplink to remote sites around the country. Harmonic’s Broadcast Network Gateways™ are used at the local operator site to format, remultiplex and modulate the streams across the HFC network and the entire video headend infrastructure is managed by Harmonic’s NMX Digital Service Manager™. Harmonic is also providing system integration and training services.

“This new deployment opens the door to the digital world for cable operators throughout Argentina,” said José Toledo, President of Red Intercable S.A. “Harmonic’s Electra H.264 encoders and DiviTrackIP statistical multiplexing are proven technologies, backed by Harmonic’s expertise and experience in providing world-class digital video solutions. By using these high performance, high quality H.264 compression systems, we can offer a reliable and efficient infrastructure for the cost-effective delivery of digital TV services to the subscribers served by our consortium of local operators.”

“Increasing competition between video service providers necessitates the expansion and enhancement of the service offering and the implementation of a more flexible IP-based infrastructure,” said Gil Katz, Director of Cable Solutions and Strategy for Harmonic Inc. “The combination of Harmonic’s latest generation Electra encoders and DiviTrackIP statistical multiplexing improves bandwidth efficiency, adds more channels to the lineup and provides better picture quality to Red Intercable’s subscribers. Today, Harmonic’s compression solutions are preferred by the world’s leading cable, satellite, telco and terrestrial service providers, including nine of the top ten cable operators in the United States and seven of the ten largest satellite operators worldwide.”

Harmonic’s market-leading one rack-unit (1-RU) Electra encoders support multi-channel and multi-format delivery for up to four full resolution and four simultaneous low resolution video outputs in HD H.264, SD H.264 or SD MPEG-2. Harmonic’s DiviTrackIP distributed statistical multiplexing further enhances bandwidth efficiency of Electra variable bit-rate (VBR) encoders by allowing bandwidth to be dynamically allocated among geographically dispersed encoders according to complexity of the content.

About Red Intercable S.A. 
Red Intercable is a company formed by 235 independent cable operators in Argentina with common objectives and realities. It reaches more than 500 towns in 19 Argentine provinces with its services. The company offers commercial and technological solutions to achieve better opportunities for the cable operators.

Red Intercable has developed specific business firms to attend the new necessities of a dynamic market. These are: Red Intercable Digital, created to provide added value solutions, related to the Internet Market, Red Intercable Satelital with the digital television brand, dibox, and Conexion Educativa, an innovator multimedia distance education system, produced in Argentina, complemented with classes broadcast through cable, material of study, a virtual campus and students centers. 

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.

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

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 features and capabilities of the Harmonic digital video systems provided to Red Intercable.

Our expectations and beliefs regarding these systems and their anticipated benefits for Red Intercable 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.