SUNNYVALE, Calif. -- Harmonic Inc. (Nasdaq: HLIT) today announced that Cox Communications, Inc. (NYSE: COX) is using Harmonic's Narrowcast Services Gateway(tm) (NSG) in select markets to enhance its Entertainment on Demand branded VOD service. These deployments reflect the accelerating trend of delivering user-controlled on-demand services.

The fourth largest cable operator in the United States, Cox has built a subscriber base of approximately 6.6 million households across 23 states. An early provider of a video, voice and data product bundle, Cox is using Harmonic's NSG to implement a scalable IP-based network architecture that is able to reliably provision a wide range of on-demand service for years to come. Cox currently has deployed Harmonic's technology for its Entertainment on Demand service in Hampton Roads, VA, New Orleans, LA and Omaha, NE.

"Entertainment on Demand is an exciting service that complements our bundle of digital services for the home. We expect to gain a significant competitive advantage and stronger customer relationships by giving our subscribers more control over their viewing experience," said John Hildebrand, Vice President of Multimedia Technology for Cox Communications. "Harmonic's Narrowcast Services Gateway opens the door to a world of everything-on-demand."

Harmonic's third-generation Narrowcast Services Gateway(tm) (NSG) family affords greater choice and flexibility in the design and expansion of a narrowcast network. Operators can combine NSG systems with different QAM channel densities to optimize their network architecture and bandwidth, reducing the effective cost of their service. The NSG is interoperable with leading VOD servers, Ethernet switches, conditional access systems (for session-based encryption) and set-top boxes.

"Cox is using video-on-demand to take the triple-play to the next level. On-demand services-such as high definition VOD, free-on-demand and subscription VOD-are proven to reduce churn, attract more subscribers and increase the average revenue per user," stated Dr. Yaron Simler, President of Harmonic's Convergent Systems Division. "That said, VOD deployments are still in the early stages. As operators extol the VOD value proposition, the increased take-rates will drive further service expansion. More capacity will be added to existing systems and services will be rolled-out in new areas. As the leading IP-enabled edgeQAM, the Narrowcast Services Gateway is best able to help operators in both cases."

Cox Communications Inc.

Harmonic Inc.