Source Cable of Canada Delivers Data and Video-On-Demand With Harmonic EdgeQAM

Installation Marks the First EdgeQAM Deployment for Both Data and VOD Services From a Unified QAM Infrastructure in the Canadian Market

SAN JOSE, Calif. -- March 27, 2012 -- Harmonic Inc. (NASDAQ: HLIT) today announced that Canadian cable television provider Source Cable has deployed Harmonic's NSG(TM) 9000 HectoQAM(TM) in its headend, allowing the cable provider to increase the speed of its Internet/data services and add new video-on-demand (VOD) services. Utilizing the highly scalable nature of HectoQAM, Source Cable can cost-effectively deliver data as well as HD and SD VOD services to its subscribers from a single, unified edgeQAM chassis.

"Our powerful edgeQAM system gives us a leg up on the competition by meeting our subscribers' insatiable appetite for video-on-demand and high-speed Internet services," said Darryl Chandler, vice president of operations and general manager at Source Cable. "The flexible and efficient design of Harmonic's HectoQAM solution will allow us to increase our data, video, and video-on-demand offerings in the future, while maintaining the highest standards of video quality that our subscribers expect."

To meet this demand for additional data and VOD services, HectoQAM features a modular design with hot-swappable RF-QAM modules, allowing Source Cable to easily grow the number of service groups, and more than quadruple the QAM capacity for existing service groups, without any rewiring or disruption to operations. This straightforward scalability is achieved through a pay-as-you-grow architecture that allows for expansion through firmware licenses as business needs evolve.

"Harmonic's industry-leading position, with more than 2 million QAM channels shipped worldwide, easily recommended us as a trusted partner for Source Cable," said Gil Katz, vice president of cable solutions at Harmonic. "This unique installation is the perfect example of how Harmonic's reliable, scalable edge and access solutions can be used to deliver both high-speed Internet services and a high-quality viewing experience while lowering operating expenses for a small to midsized cable television provider like Source Cable."

The Harmonic HectoQAM solution delivers up to 648 QAM RF channels of cable TV services, including high-speed Internet, VOD, switched digital video (SDV), or video broadcast. Utilizing a small form factor of 2 RU and low power consumption per QAM channel, HectoQAM provides Source Cable with an extremely dense and flexible solution for streaming content over its network. Utilizing DOCSIS 3.0 and modular CMTS standards for downstream data transmission, the cable television provider can now deliver faster data and Internet services, more channel bundles, and enhanced video and VOD services.

System integration and training for the HectoQAM solution was completed by Capella Telecommunications, a Harmonic distributor and system integrator located in Canada. "Capella is pleased to continue a long relationship supporting Source Cable by deploying advanced products to meet their customer needs and business requirements," said Wayne Rabey, vice president of sales at Capella Telecommunications.

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About Harmonic Inc.

Harmonic Inc. (NASDAQ: HLIT) provides infrastructure that powers the video economy. The company enables content and service providers to efficiently create, prepare, and deliver differentiated video services for television and new media platforms. More information is available at www.harmonicinc.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to the anticipated capabilities and benefits of Harmonic's NSG(TM) 9000 HectoQAM(TM) product. Our expectations and beliefs regarding these matters may not materialize and are subject to risks and uncertainties, including the possibility that this product does not meet some or all of its anticipated capabilities or provide some or all of its anticipated benefits, such as reliability, scalability, cost-effectiveness, speed and offering enhancement, video quality, flexibility and density.

The forward-looking statements contained in this press release are also subject to other risks and uncertainties, such as those more fully described in Harmonic's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec.31, 2011, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to Harmonic as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

About Capella

Capella Telecommunications Inc., a privately owned Canadian company established in 1993 is recognized as one of the leading full service distributors and system integrators of video, voice, and data products. From the most complex electronic equipment to the simplest hardware, Capella is committed to providing the highest quality products available today. Our goal is to provide customers with innovative, leading-edge products from the most technologically advanced manufacturers worldwide. In a rapidly changing industry, we have a reputation of being at the forefront in identifying, evaluating, and introducing quality products to the marketplace. More information is available online at www.capella.ca.

About Source Cable

Source Cable Limited is a privately owned, single source service provider that has been serving the residents of Hamilton for 38 years. Source Cable offers over 400 television and audio channels, including 80 High Definition networks and On Demand. In addition, Source Cable provides ultra fast High Speed Internet and Home Phone services, Fiber-to-the-Home, Home & Business Security, Wireless Internet and Commercial business services. For more information about Source Cable Limited, please visit our website at www.sourcecable.ca or contact Darryl Chandler at 905 574-6464 x 30

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

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