BT Media and Broadcast Adopts Harmonic’s Rhozet™ Transcoding Technology for Global Digital Media Platform

Harmonic Inc. (NASDAQ:HLIT) today announced that its Rhozet™ universal transcoding technology has been adopted by BT Media and Broadcast, part of BT Global Services, for its BT Mosaic digital media platform. BT Mosaic is a leading online digital media management platform that manages content preparation and delivery processes. BT Mosaic with Rhozet Carbon Coder™ provides an integrated, end-to-end file-based workflow for content acquisition, preparation and multi-format delivery.

"BT Mosaic is a new concept—workflow as a service—enabling collaboration for media production,” said Julian Wheeler, Director of Digital Media at BT Media and Broadcast. "Rhozet Carbon Coder’s robust format support, high-quality output and good value fit well with this new flexible model for content preparation and delivery.”

BT Mosaic allows customers to ingest, store, mark up, and repurpose content for almost any platform and consumer device. Customers can deliver content globally through the use of distributed media hubs, nodes and integrated workflow management capabilities.

"BT Mosaic is an impressive new digital media platform that is used by media companies to optimize workflow and increase delivery options,” said David Trescot, Vice President of the Rhozet Business Unit at Harmonic Inc. "Carbon Coder transcoding technology expands their offering by providing support for the widest range of formats, as well as automated features that simplify ingest and transcoding processes.”

BT Mosaic manages media organizations’ content preparation and delivery processes, flexibly orchestrating systems and people within the enterprise and across global collaborative ecosystems. BT Mosaic is the foundation that allows media companies to embrace organizational change and new ways of working, breaking down operational silos and enhancing communication without imposing rigid workflows.

Rhozet Carbon Coder is a universal transcoding solution used by leading media companies including Ascent Media, the BBC, British Sky Broadcasting (BSkyB), thePlatform, Lifetime Networks and MTV. It facilitates the creation of multi-format video for Internet, mobile and broadcast applications. As part of the transcode process, Carbon Coder handles an array of critical operations including SD/HD and PAL/NTSC conversion, logo insertion, color space conversion, color correction and Closed Captioning extraction. Multiple Carbon Coder nodes can be configured as a rendering farm to accelerate the workflow and provide automated processing for high-volume transcoding.

About BT Media and Broadcast

BT Media and Broadcast is a unique organization within BT, with over 50 years experience in the media and entertainment industry. We have created many industry firsts, and assembled the very latest global, digital network and media solutions portfolio for managing and delivering today’s media content. We have forged partnerships with industry leading vendors with a single common goal - to deliver transformational solutions that allow our customers to prosper and thrive in the digital media economy.

About BT

BT is one of the world’s leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2008, BT Group plc’s revenue was £20,704 million with profit before taxation and specific items of £2,506 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York. For more information, visit www.bt.com/aboutbt.

For further information about BT

Enquiries about this news release can be made to the BT Group Newsroom on its 24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369. All news releases can be accessed at our web site: http://www.bt.com/newscentre.

Justine Manche, BT Global Services PR, Tel: 020 7356 5371 or email: justine.manche@bt.com

James Hoyle, Fishburn Hedges, Tel: 20 7544 3041 or email: james.hoyle@fishburn-hedges.co.uk

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.

Rhozet, a business unit of Harmonic Inc., is dedicated to providing accelerated high-quality media transcoding solutions. The Rhozet solutions are offered in both off-the-shelf and customized software configurations for the production and content delivery markets. For more information about Rhozet technology please visit www.rhozet.com.

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 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: enabling collaboration for media production and expanding the BT Mosaic offering.

Our expectations and beliefs regarding the capabilities of Harmonic’s Rhozet™ universal transcoding technology and its benefits for BT Media and Broadcast 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.

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