The Carlyle Group Leases Entire Office Building in San Jose to Harmonic, Inc. for New Corporate Headquarters; 188,332 sf Transaction is Largest New Office/R&D Lease in Silicon Valley in Two Years

Los Angeles - Global private equity firm The Carlyle Group today announced that it has leased 4300 North First Street, a commercial office building in San Jose, CA, totaling 188,332 sf, to Harmonic, Inc., a global provider of video delivery solutions. The facility, a three-story structural steel frame building, will serve as Harmonic’s new headquarters. Harmonic will relocate from Sunnyvale in August 2010.

Carlyle Managing Director Paul Brady said, "We are exceptionally pleased that Harmonic has selected our building for its corporate headquarters."

“Harmonic is pleased to enter into this new lease so we can consolidate our operations in Silicon Valley into one building. Over the term of the lease this move represents a significant cost benefit for Harmonic compared to our current facilities,” said Patrick Harshman, CEO at Harmonic Inc. "Our new headquarters will be in the heart of Silicon Valley with superb access to major transportation corridors and will provide a great environment for Harmonic's talented workforce."

Carlyle Realty Partners V, a $3 billion fund that targets opportunistic real estate investments in North America, purchased 4300 and 4400 North First Street, San Jose, CA in June 2007. IBM occupies 4400 North First Street. The buildings were originally owned and developed by Cisco Systems for their own account.

According to Jim Fletcher of CB Richard Ellis, who also represented IBM in the same project, this is the largest new office/R&D transaction in the Silicon Valley in the past two years.

Carlyle was represented by Craig Fordyce and Mike Rosendin of Colliers. Harmonic was represented by Conor Flannery and Andy Poppink of Jones Lang LaSalle.

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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 20 years of 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 currently 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.

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