TLWT Telewest Global (MM)

Harmonic Inc. (Nasdaq: HLIT), the recognized leader in scalable IP-enabled video-on-demand (VOD) delivery solutions, today announced that Telewest (Nasdaq: TLWT)--a leading provider of the video, voice and broadband internet triple play in the UK--is using Harmonic's Narrowcast Services Gateway(TM) (NSG) to deliver its new TV-on-demand service, Teleport. The recently introduced service is currently available in the South West of the U.K. and is being rolled out incrementally across Telewest's entire network. The award winning NSG is the world's most widely deployed IP-enabled on-demand service edge solution, supporting more and larger-scale deployments than any other device in its class. Telewest serves more than 1.8 million of the 4.7 million homes its network passes. The digital television service, received by approximately 90 percent of the company's TV subscribers, positions Telewest to benefit from the reduced churn and new revenue associated with on-demand television services. The subscriber base is expected to be fully digital by the end of 2006. Telewest has been adept at packaging video, voice and data services--with triple play penetration of more than 30 percent, which is one of the highest in the world--and on-demand services are expected to play a key role in ensuring competitiveness and driving triple-play penetration moving forward. "Consumer feedback to Teleport Replay, which offers free, on-demand access to programs broadcast over the preceding seven days, suggests that our consumers want more control over their viewing experience," said Howard Watson, Chief Technology Officer at Telewest. "Harmonic's proven solutions and expertise have helped us reduce the cost and complexity of launching on-demand services by taking full advantage of our existing infrastructure. While the initial application of Harmonic's Narrowcast Services Gateway is to support on-demand services, its longer term purpose is to be a platform for introducing new types of targeted services that will keep Telewest at the competitive forefront." To support the initial launch and future expansion of on-demand services, Telewest is deploying Harmonic's versatile Narrowcast Service Gateway systems in headends and hub sites throughout the network. Harmonic's standards-based solution enables on-demand streams to be efficiently transported from remote video servers using Telewest's existing IP backbone network. At the network's edge, NSG systems extract and reconstitute the MPEG streams from the IP packets, and then provide a seamless interface with the existing HFC cable network. As take-rates increase, Telewest can add more NSG capacity to meet the demand and support new services. The NSG also uniquely supports both the real time and pre- encryption of video content to provide the highest levels of content protection and flexibility in service provisioning. "Telewest is a superb example of how cable operators can effectively package the triple play to enhance retention and revenue in an increasingly competitive world," said Patrick Harshman, President of the Convergent Systems Division of Harmonic Inc. "The introduction of VOD and replay TV services are an important step in realizing the all high definition on-demand future, a key differentiator for cable operators. Aggressive marketing of video-on-demand services by our customers worldwide is increasing viewer awareness and is expected to quickly drive demand for billions of narrowcast streams annually. As the platform of choice for on-demand service delivery, the Narrowcast Services Gateway is well positioned to distribute the vast majority of the on-demand content." A pioneer in bringing the efficiencies, flexibilities and economics of IP to the cable video backbone network, Harmonic was awarded "biggest contributor to the future of content delivery" by a respected industry publication. With the launch of Telewest's service, the NSG is powering services throughout the Americas, Europe and Asia, making it the industry's most widely deployed IP-enabled on-demand edge device. The breadth of deployments--by operators of all sizes in communities of all sizes--has made the NSG the industry's most versatile and proven solution as well as given Harmonic unparalleled expertise in enabling narrowcast video services. About Telewest Telewest, the broadband communications and media group, currently passes and markets to 4.7 million homes and provides multi-channel television, telephone and internet services to 1.8 million residential customers. Its content division, Flextech, is the BBC's partner in UKTV. Together they are the largest supplier of basic channels to the UK pay-TV market with a portfolio that combines wholly owned and managed channels, including the ten joint venture channels with the BBC. For further information go to mediacentre.telewest.co.uk. About Harmonic Inc. Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access. 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 benefit from the reduced churn and new revenue associated with on-demand television services, the expectation that the subscriber base will be fully digital by the end of 2006, the expectation that on-demand services will play a key role in ensuring competitiveness and driving triple-play penetration, the NSG platform keeping Telewest at the competitive forefront, the ability to add more capacity as take-rates increase, the expectation that video-on-demand services will quickly drive demand for billions of narrowcast streams annually, and the NSG's positioning to distribute the vast majority of the on-demand content. Our expectations and beliefs regarding these matters may not materialize, and actual results could differ materially from those projected. The forward-looking statements contained in this press release area 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.