Harmonic Becomes First Fiber-to-the-Premises Video Transport Solution

Harmonic Becomes First Fiber-to-the-Premises Video Transport Solution Provider to Receive TL 9000 Certification

    Business Editors/High-Tech Editors

    SUNNYVALE, Calif.--(BUSINESS WIRE)--March 15, 2005--

Establishes Comprehensive Portfolio of Ready-to-Deploy Telco Video Solutions
    Harmonic Inc. (Nasdaq: HLIT) today announced that it recently received TL 9000 certification, making it the first provider of dedicated video transport solutions for telco fiber-to-the-premises (FTTP) networks to earn this distinction. TL 9000 compliance is a critical requirement for providing network infrastructure solutions to most telcos around the world including the Regional Bell Operating Companies (RBOC) in the United States. As such, Harmonic now offers one of the most comprehensive portfolios of ready-to-deploy solutions for enabling and delivering broadcast quality video over DSL and fiber-deep networks. This certification clears the way for Harmonic and its partners to broadly deploy the FTTP video transport solution for Verizon Communications Inc. and other telecom providers.
    TL 9000 represents a telecommunications industry specific extension to the globally important ISO 9001 quality standard. TL 9000 validates the quality of a vendor's products, services and customer care, thereby protecting the integrity of the resulting communications infrastructure and services. TL 9000 is also designed to drive supply chain efficiencies and improve relationships with suppliers.
    With increased competition in the voice and data markets, video is becoming a critical part of a telco's service offering. To be competitive, operators will need to deliver more than a hundred broadcast TV channels as well as video-on-demand, each with a broadcast-quality picture, while leveraging as much of their existing infrastructure as possible. The two primary methods of provisioning such services are video-over-DSL, which relies on highly efficient digital video encoders, and a video overlay to a FTTP network that is capable of delivering traditional analog television in addition to digital channels.
    "Harmonic has quickly and firmly established itself as the global leader in IP-based digital headends using MPEG-2 and MPEG-4 AVC (H.264) for video-over-DSL services," said Anthony Ley, President and Chief Executive Officer of Harmonic Inc. "We are working with telcos of all sizes in the Americas, Asia and Europe and, in doing so, have deployed our DiviCom(R) encoders to establish the world's largest MPEG-2 as well as the first operational MPEG-4 video-over-DSL services. To complement our successful video-over-DSL solution and to support the growing number of fiber-to-the-premises networks, we offer a high-performance and high-capacity video delivery system using our industry leading MAXLink(TM) Plus 1550 nm Transmitter. Harmonic, as a result, has one of the most comprehensive, ready-to-deploy and proven telco video product lines in the market today."
    Harmonic is working with leading telecommunications companies and infrastructure providers around the world to introduce and expand video services in FTTP and DSL networks. In a FTTP environment, Harmonic's video solution--which, in simple terms, essentially implements a virtual RF cable network--provides bandwidth in excess of five gigabits per second (Gbps) to the home, more than sufficient for carriers to deliver more than 250 simultaneous MPEG-2 HD channels. This approach allows telcos to leverage an architecture and the economies of scale established and proven by the cable industry.
    "Harmonic's complete FTTP Video Solution enables RBOCs and other telcos to more quickly and cost-effectively introduce compelling broadcast and on-demand television services," said Patrick Harshman, President of Harmonic's Broadband Access Networks Division. "The exceptional reach and capacity of our solution makes it possible to transport a full line-up of analog and/or digital channels--in standard and high definition formats--from a central office or remote terminal to the customer premises without any active equipment in between. Our TL 9000 certification underscores Harmonic's commitment to deliver the highest quality and most reliable products in the market."
    Harmonic's FTTP Video Solution, powered by the high performance MAXLink Plus 1550 nm Transmitter and Video Optical Amplifier, lowers the cost of incorporating a scalable video service in a FTTP network. The complete Harmonic-based solution is ITU G.983.3, FSAN and NEBS Level 3 compliant. Harmonic patented technology embedded within the solution gives system operators the flexibility to increase channel capacity, go longer distances, or lower overall costs without sacrificing performance. The resulting broadcast video service is fully compatible with existing coaxial cabling and televisions in the customer premises, improving time-to-market in addition to minimizing capital and operating expenditures.

    About TL 9000

    The TL 9000 Quality Management System (QMS) was created by QuEST Forum, a body composed of telecommunications operators and suppliers, to meet the quality requirements of the worldwide telecommunications industry. It defines quality system requirements for the design, development, production, delivery, installation and maintenance of telecom products and services, and provides a measurement system that, when implemented, allows companies to track performance and improve results. TL 9000 provides a consistent set of quality expectations needed to drive efficiency and performance across the global telecom supply chain. Major telecom service providers around the world, including Regional Bell Operating Companies (RBOCs), are requiring TL 9000 registration from all of their equipment vendors.

    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.

    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: video becoming a critical part of a telco's service offering, operators' need to deliver more than a hundred broadcast TV channels as well as video-on-demand, Harmonic working to introduce and expand video services, and Harmonic's complete FTTP Video Solution enabling RBOCs and other telcos to more quickly and cost-effectively introduce compelling broadcast and on-demand television services.
    Our expectations and beliefs regarding these matters may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release area 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.

    EDITOR'S NOTE - Product and company names used herein are trademarks or registered trademarks of their respective owners.

--30--WG/sf*

CONTACT: AxiCom (Media Relations for Harmonic) Stephen Orr, +1-408-543-2360 or +44-(0)20-8392-4056 stephen.orr@axicom.com or StreetConnect (Investor Relations for Harmonic) Michael Newman, +1-408-542-2760 mnewman@stct.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE PRODUCT SOURCE: Harmonic Inc.

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