Satellite Pay-TV Operator ‘yes’ Debuts Over-the-Top on-Demand Service Powered by Harmonic’s Converged Video Solutions

– Innovative Operator Delivers VOD via Internet Connection to Existing Subscriber Installed Base; Upgrades Broadcast HD/SD Video Service with Harmonic’s Encoders –

Amsterdam — IBC 2010 Stand #1.C61 - Harmonic Inc. (NASDAQ: HLIT) today announced that ‘yes’ DBS Satellite Services has deployed Harmonic’s MediaPrism™ converged video suite as part of its recently launched video on demand (VOD) service, delivered to subscribers over-the-top (OTT) via a broadband Internet connection to the set-top box. ‘yes’, the leading direct-to-home (DTH) broadcaster in Israel and one of the world’s most innovative and technologically advanced satellite operators, also recently upgraded its headend using Harmonic’s market-leading SD and HD Electra® encoding and multiplexing solutions.

‘yes’ regards VOD as a must-have application for the company to compete in an increasingly on-demand world, and as an important source of new revenues. The new solution enables ‘yes’ to overcome the challenges associated with a one-way broadcast satellite network and easily make VOD services available to more than 576,000 subscribers.

“Offering VOD over-the-top makes sense for DTH providers, but ‘yes’ was concerned about the bandwidth and video quality limitations that are often associated with streaming video over broadband,” said Itzhak Elyakim, ‘yes’ VP of engineering and CTO. “We are thrilled with the excellent video quality provided by the Harmonic Electra encoders and the progressive video download and caching capabilities of the MediaPrism solution. The seamless integration of the new Harmonic VOD platform with our existing EPG, billing and customer service interfaces made it possible for us to launch an easy-to-use Internet VOD service to our subscribers.”

Harmonic’s MediaPrism solution for converged multi-screen video delivery is the industry’s most comprehensive suite of tools for real-time and offline content ingest, transformation, distribution and delivery. At ‘yes’ capture and ingest functions are provided by elements of the MediaPrism suite, including CLEARcut™ offline content preparation and Carbon Coder™ transcoding technology, while the StreamLiner® video servers are used to stream video assets.

StreamLiner supports the latest streaming formats and addresses bandwidth limitations by enabling progressive download of high quality SD and HD video, which is cached by a hybrid IP set-top box. ’yes’ viewers can switch seamlessly between VOD and broadcast channels, with VOD program selection and billing handled by the existing ‘yes’ infrastructure. Harmonic’s NMX Digital Service Manager™ manages and controls the video delivery network.

“As a long-term solution provider to ‘yes’, Harmonic understands the company’s evolving needs and is committed to delivering innovative solutions that enable ‘yes’ to offer its subscribers cutting edge services and a comprehensive, compelling customer experience,” said Nimrod Ben-Natan, Vice President of Product Marketing, Solutions and Strategy for Harmonic Inc. “We are proud that Harmonic solutions have contributed to the company’s reputation as a sophisticated, forward-looking provider of advanced services.”

About ‘yes’
DBS (Digital Broadcasting Satellite), which operates as ‘yes satellite services’, was founded in 1998 and began operating in 2000. The company holds the license to operate Israel’s only multi-channel television service broadcasting over satellite. It was the first company in the market to offer digital broadcasts and interactive television services; to broadcast advanced formats in wide screen; and to introduce a HDPVR. ’yes’ broadcasts over 150 video channels, 50 radio and music channels and 13 HD channels. The company is committed to leveraging its technological leadership to provide its subscribers with a superior viewing experience.

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.

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: the excellent video quality provided by the Harmonic Electra encoders and the progressive video download and caching capabilities of the MediaPrism solution; the seamless integration of the new Harmonic VOD platform with existing interfaces; delivering innovative solutions that enable subscribers cutting edge services and a comprehensive, compelling customer experience.

Our expectations and beliefs regarding the capabilities of Harmonic’s converged video solutions and the anticipated benefits for ‘yes’ DBS Satellite Services 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.

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