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New Value-Added Services Meet Needs of Operators That Offer Advanced Applications Such as VoIP, IPTV, Enhanced Voice Messaging, and FMC

(Logo: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO )

With its strong background in IP telephony and wireless networks,
UTStarcom believes it will be able to offer customers business solutions that
address their key concerns, including total cost of network ownership,
operational efficiency, and faster time to market. These services are aimed
at operators that offer advanced telecom applications such as VoIP, IPTV,
enhanced voice messaging, and fixed-mobile convergence (FMC) as well as at
smaller operators.

'UTStarcom is capitalizing on its investment in the services area by
bringing a value-added services provider approach to the forefront,' said

Steve Shaffer, vice president of International services at UTStarcom. 'We
believe becoming an end-to-end solutions provider will allow us to take on the
challenges of our long-established customers and further secure long-term
customer loyalty and commitment by improving customer satisfaction. We expect
value-added services will also open new markets worldwide.'

Meeting Today's Services Challenges

In today's multi-services convergence environment, which is driven by
market demand and enabled by new technologies, end users, networks, and
services interact dynamically. To succeed, operators need to differentiate
their subscriber offerings, make their operations more efficient and cost
effective, enhance productivity, grow their businesses, and increase revenues.

UTStarcom's customers increasingly look to the company to provide more of
the value-added services they need to achieve their goals, which can enable
them to refocus on their core competencies. UTStarcom has qualified technical
talent available globally and the specialized expertise ideal for the
successful implementation, maintenance, and services required by increasingly
complex new technologies.

'As a leading provider worldwide of next-generation platforms for advanced
applications, UTStarcom knew the importance of supporting the new breed of
end-to-end solutions with a new level of service,' said Rajiv Nayyar, director
of professional services at UTStarcom. 'Our new solutions orientation is
designed to let operators concentrate on their business model and their
end-customers while we provide complete support for implementing and managing
UTStarcom and multi-vendor solutions and rolling out new services.'

New Services Support UTStarcom's End-to-End Solutions

UTStarcom offers a wide variety of solutions for high-performance
applications and services that are designed to enable operators to compete
effectively in a rapidly evolving market. The company's new VAS aims to
extend its solution-oriented approach from supplying platforms to all aspects
of planning for, deploying, and managing both platforms and services.

The company's new approach to services is likely to benefit its complete
portfolio of end-to-end solutions, including the RollingStream(TM) IPTV
solution for broadcast-quality TV and on-demand entertainment; the
MovingMedia(TM) 2000 product portfolio for CDMA operators; and the
Continuity(TM) FMC solution for wireline and wireless carriers.

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, 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 ability of the Company to offer business
solutions addressing the key concerns of customers relating to the cost of
network ownership, operational efficiency and faster time to market, the
expectation that the Company's solution-oriented business model will be
suitable for operators of varying size and sophistication, the expectation
that the Company will continue to focus on bringing a value-added services
provider approach to the forefront, the expectation that the Company's
development into an end-to-end solutions provider will enable it to better
meet the demands of customers, improve customer satisfaction and secure their
loyalty, the expectation that value-added services may open new markets
worldwide, the anticipation regarding the state of the telecommunication
market environment and proper measures to succeed in such environment, the
anticipated demand by the Company's customers for value-added services, the
anticipated effectiveness of value added services in enabling service
providers to meet their goals, the anticipated suitability of the Company's
talent pool and expertise for the demands of the telecommunication market, the
anticipated ability of the Company's solutions to complement and enhance the
business models of operators, the expectation that the Company's wide variety
of solutions may enable operators compete more effectively in a rapidly
evolving market, the anticipated ability of the Company's value-added services
to successfully plan for, deploy and manage platforms and services, and the
expectation the Company's approach to services can benefit its complete
portfolio of end-to-end solutions. 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
significant 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, general adverse economic conditions, and
trends and uncertainties such as changes in government regulation and
licensing requirements. 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.