Investor Relations

Over 80 Percent of All IPTV Subscribers in China on UTStarcom's RollingStream(TM) End-to-End System

(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO )

The initial deployment, supporting 30,000 subscribers, is planned to
include 14 service points covering major metropolitan areas of Xian, the
capital city of Shanxi Province. The service is expected to offer up to 80
channels of live, broadcast television; 24-hour time-shifting capability;
approximately 10,000 hours of video-on-demand (VOD) content; and valued-added
services including karaoke and gaming.

'UTStarcom continues to build on its leadership in the IPTV market in
China and this contract is further validation of the strength, reliability and
security of our RollingStream end-to-end IPTV system,' said
Ying Wu, president
and chief executive officer of UTStarcom China. 'Many of our initial IPTV
deployments in China are currently undergoing network expansions as demand for
the service has grown. Additionally, we are seeing new deployments emerge as
fixed-line operators are realizing the potential for deploying IPTV services
to combat subscriber churn and increase average revenue per user.'

At ITU Telecom World 2006 in Hong Kong last month, UTStarcom's
RollingStream IPTV solution was named the best IPTV solution worldwide by
Communications Weekly, a leading publication under the guidance of the
Ministry of Information Industry (MII) in China. UTStarcom was also awarded
the Development Contribution Award for its efforts for IPTV standardization in
China.

About UTStarcom's RollingStream

UTStarcom's RollingStream(TM) is an end-to-end solution designed for
telecommunications operators and broadband service providers to deliver
broadcast quality TV and on-demand entertainment programming over IP networks.
RollingStream is designed to offer service providers the scalability,
reliability, and bandwidth efficiency to support new services including
broadcast TV, Network PVR (n-PVR), Video on Demand (VoD), and Near Video on
Demand (NVoD) over existing network infrastructures, which may result in
opportunities for increased revenues, new services, and improved customer
satisfaction and retention. For more information about UTStarcom's
RollingStream solution, please visit:
http://www.utstar.com/Solutions/Broadband/IPTV .

About UTStarcom, Inc.

UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company sells its broadband,
wireless, and handset solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its customers
to rapidly deploy revenue-generating access services using their existing
infrastructure, while providing a migration path to cost-efficient, end-to-end
IP networks. Founded in 1991 and headquartered in Alameda, California, the
company has research and design operations in the United States, Canada,
China, Korea and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, visit the company's Web site at
www.utstar.com .

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing
statements regarding the anticipated scope, content and features of the
RollingStream initial deployment in Shanxi Province, and the expectations
regarding the market demand for, and the benefits to service providers from
the use of, the RollingStream solution. These statements are forward-looking
in nature and subject to risks and uncertainties that may cause actual results
to differ materially. These risk factors include rapidly changing technology,
the changing nature of global telecommunications markets, the termination of
contracts and/or strategic relationships, the direction and results of future
research and development efforts, evolving product and applications standards,
reduction or delays in system deployments, product transitions, potential
non-realization of backlog, changes in demand for and acceptance of the
Company's products, both in China and globally, general adverse economic
conditions, and trends and uncertainties such as changes in government
regulation and licensing requirements, both in China and globally. The Company
also refers readers to the risk factors identified in its latest Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K,
as filed with the Securities and Exchange Commission.

SOURCE UTStarcom, Inc.