Burbank, CA, July 21, 2003- TVN Entertainment Corporation, the leading provider of on demand content, management and delivery services, today announced that it will offer a new Real Time Encoding (RTE) and priority delivery service called TVNow. Utilizing the award-winning DiviCom® MPEG-2 encoding systems from Harmonic Inc. (Nasdaq: HLIT), the service will allow content suppliers, network programmers and cable operators the ability to turn time-sensitive programming into viewable VOD assets in hours instead of days.

TVN, which provides backend VOD management services for over 70 content suppliers including prominent network programming stables Scripps, Turner, Fox, ABC/Disney, ESPN and Discovery, has developed a process to record, incorporate complex asset management and provide priority delivery for any linear program. The CableLabs compliant, open standards based TVNow service, allows for a program to be recorded once, configured, delivered and "made available" to millions of VOD homes shortly after the program's original airing. The TVNow service, available immediately, allows content providers to offer viewers time-shifted programming, including out of market sports and live events, broadening audience viewership and extending brand awareness.

TVN's relationship with Harmonic encompasses both national and local real-time encoding solutions that are integrated with TVN's ADONISS asset management system. As more local RTE gear is rolled out, TVN's ADONISS software "mirrors" the associated metadata of the locally encoded asset and reflects that information in TVN's web-based Affiliate Remote Interface (ARI 1.3), allowing TVN Affiliates the ability to view content delivered from all sources, whether national or local through a single interface. This becomes even more important as VOD server manufacturers perfect the ability to "associate" files within the VOD user experience. In that environment, ARI 1.3 will allow Operators to bundle national with local VOD program offerings, extending the value of the VOD customer experience.

"The outstanding performance, reliability and picture quality of Harmonic's DiviCom MPEG-2 encoders will enable us to extend TVN's leadership position in providing cutting edge VOD content solutions," said Jim Riley, TVN's Senior Vice President of Business Development. "As the only complete end-to-end VOD content service provider, TVN is uniquely qualified to offer this service to the industry."

"TVN's VOD experience, distribution platform, and strong relationships within the programming community are key elements to defining a new on-demand programming category," said Buddy Snow, Vice President of Marketing for Harmonic Inc.'s Convergent Systems Division. "Adding Harmonic's deep on demand video network expertise and advanced real-time MPEG encoding capabilities to the mix positions TVN to offer a winning solution in this emerging market."

About TVN Entertainment Corporation
TVN Entertainment, the leading provider of on demand television programming, management and delivery services, enables Video-On-Demand (VOD), Pay-Per-View (PPV) and direct response programming reaching over 50 million U.S. cable television households. In addition to comprehensive programming services, TVN Entertainment offers the only single-source management and distribution solution for VOD and PPV, including content aggregation, packaging, encoding, asset management and transport via satellite to all video service providers. TVN currently distributes more than 1200 hours VOD programming from over 70 content providers. TVN Entertainment has been chosen as the VOD content solution for many leading MSOs, including Adelphia, Charter, Comcast, Insight and Mediacom. Visit TVN.com for more information.