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Strategic Alliance to Provide UTStarcom with Access to 14 New Markets across Latin America

ALAMEDA, Calif., Sept. 9 /PRNewswire-FirstCall/ -- UTStarcom, Inc. (Nasdaq: UTSI) today announced a Reseller Agreement with DESCA, a Miami-based infrastructure and telecommunications networking company and wholly-owned subsidiary of eLandia (OTC Bulletin Board: ELAN). The Agreement will help accelerate UTStarcom's expansion into 14 markets in Central and South America with the support from DESCA's team of more than 700 sales, service delivery professionals and customer service agents.

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"UTStarcom continues to pursue new opportunities to expand the reach of our IPTV and broadband portfolios," said Luis Dominguez, UTStarcom's SVP of International Sales & Marketing. "This cooperative sales arrangement with DESCA aligns very well with our stated strategy of pursuing new sales partnerships to market our IP based solutions into key geographic markets."

This new relationship between UTStarcom and DESCA allows both companies to leverage the collective sales force, customer base and hosted managed service offerings for new and existing sales programs. Both companies will collaborate on infrastructure and solutions integration to help ensure the deployment of high-quality products and services with a strong emphasis on the customer experience.

"DESCA is committed to providing its customers with innovative products and solutions that leverage the widespread use of broadband and IP-based services," said Jorge Alvarado, president and CEO, DESCA. "We are delighted to have signed this cooperative agreement with UTStarcom and we look forward to providing our customers with an expanded portfolio of solutions."

According to the Agreement, UTStarcom's portfolio of solutions will be marketed and distributed through DESCA's sales force in Central and South America, including Mexico, Belize, Brazil, Guatemala, Honduras, El Salvador, Costa Rica, Nicaragua, Panama, Venezuela, Colombia, Ecuador, Peru, Argentina, Puerto Rico and Dominican Republic. UTStarcom will also support the sales of DESCA's solutions throughout the Americas region.

UTStarcom's broadband solutions enable the deployment of IP-based, high-speed Internet, voice, data and multimedia services over wireline and optical networks for service providers such as Bharat Sanchar Nigam Ltd. (BSNL) and United Telecoms Ltd. In addition, UTStarcom's RollingStream(R) IPTV system provides customers with advanced video services such as interactive television, digital signage, mobile TV and distance learning programs. UTStarcom has announced IPTV deployments with Bharti Airtel, BSNL/Aksh, Mahanagar Telephone Nigam Ltd. (MTNL)/Aksh and United Telecoms Limited in India; China Unicom and China Telecom in China; Sri Lanka Telecom in Sri Lanka; Softbank in Japan, Brasil Telecom in Latin America and Markwell in Taiwan. UTStarcom is the IPTV market share leader in both China and India. UTStarcom is also the market share leader in India's broadband market.

About DESCA

DESCA is the leading provider of network infrastructure and system integration products and services in Latin America and the Caribbean. The company delivers world-class business information and telecommunications solutions to customers in Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Trinidad & Tobago, Venezuela, and Argentina. The company is wholly-owned by eLandia International Inc. (OTCBB: ELAN) and headquartered in Miami, Florida. For more information, please visit www.desca.com.

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 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. The company was founded in 1991 and is headquartered in Alameda, California. For more information about UTStarcom, visit the company's Web site at http://www.utstar.com.

Forward-Looking Statements

This press release contains forward-looking statements regarding UTStarcom's future strategy, including statements regarding the company's IPTV and broadband portfolios. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. Factors that could cause actual results to differ materially from those contained in our forward-looking statements include: increased competition; economic issues in the identified geographic markets; failure to rapidly and successfully develop and introduce new products; risks associated with delays in product development or customer acceptance and implementation of new products and technologies. Please also refer to UTStarcom's periodic reports that are filed from time to time with the Securities and Exchange commission, including our latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. UTStarcom assumes no obligation to, and does not currently intend to, update these forward-looking statements.

SOURCE UTStarcom, Inc.