RCN Expands On-Demand Video Service with Harmonic's Market-Leading edgeQAM Solution

Business Wire, Nov 14, 2007

U.S. Cable Operator Supports More VOD Sessions Using Narrowcast Services Gateway[TM] with Privacy Mode Encryption

SUNNYVALE, Calif. -- Harmonic Inc. (NASDAQ: HLIT) today announced that RCN Corporation, with more than 350,000 cable subscribers, has extended its video-on-demand (VOD) service capacity with the addition of Harmonic's Narrowcast Service Gateway[TM] (NSG) 9116 edgeQAMs with Privacy Mode encryption, and a software upgrade of existing NSG 8108 systems to add Privacy Mode. With the expansion, RCN can securely deliver more VOD services to more subscribers, enhancing customer satisfaction and increasing RCN's revenue potential. Harmonic is the leading provider of edgeQAM systems to North American cable service providers, and counts nine of the top 10 operators in the United States as its customers.

VOD is an increasingly popular service among consumers, and an important competitive differentiator for cable operators. The NSG family of edgeQAMs is an essential part of VOD service delivery, performing a variety of functions at the network edge, including multiplexing, program routing, PCR restamping, scrambling, QAM modulation and RF up-conversion.

"The expansion of our VOD service, which covers all of our geographical markets, is a critical component of RCN's growth strategy," said Rick Swiderski, Vice President of Engineering for RCN. "In selecting our edge solution provider, it was important for RCN to choose a partner that could provide both customers and content owners with the assurance that the VOD program transmission is going to be secure and reliable, in addition to being able to successfully perform all of the required edge processing functions. Harmonic is the clear leader in this space, and the NSG edgeQAMs with Privacy Mode encryption make it simpler and more cost-effective to deliver secure, high quality VOD programming."

"In an effort to offer a more compelling and differentiated service, cable operators continue to increase the number of VOD sessions they can support," said Gil Katz, Director of Cable Solutions and Strategy for Harmonic Inc. "RCN is an existing customer of Harmonic's NSG edgeQAMs and HFC access solutions, and this expansion allows RCN to remain at the forefront of video services by giving RCN the capability to significantly scale its on-demand service offering to support more subscribers and additional VOD sessions. Harmonic's complete line of market-leading NSG edgeQAMs offers unique flexibility to operators, with proven success and reliability, support for a wide range of applications, software upgrade capabilities and a future-proof design."

Harmonic's family of NSG edgeQAM devices includes the widely deployed NSG 9116, NSG 8108 and the NSG 9000 universal edgeQAM. All three models support Privacy Mode encryption. The NSG 9000 is designed to support DOCSIS 3.0 and is in use today by leading cable operators worldwide for broadcast, VOD, switched digital video (SDV) and modular cable modem termination system (M-CMTS) applications.

About RCN Corporation

RCN Corporation, (NASDAQ: RCNI) http://www.rcn.com, is one of the largest facilities-based competitive providers of bundled cable, high-speed internet and phone services delivered over its own fiber-optic local network to residential, small business and commercial customers in the most densely populated markets in the U.S. RCN provides service in the Boston, Chicago, Eastern Pennsylvania, New York, and Washington, D.C. metropolitan markets. In addition, RCN operates two commercial divisions - RCN Business Services, a provider of bulk video, broadband internet access and voice services to small and medium business customers, and RCN Business Solutions, a fiber facilities-based provider of high-availability telecommunication services to both retail and wholesale business customers.

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: the expansion of RCN's VOD service; the assurance that VOD program transmission is going to be secure and reliable in addition to being able to successfully perform all of the required edge processing functions, cable operators continuing to increase the number of VOD sessions they can support, and giving RCN the capability to significantly scale its on-demand service offering.