Investor Relations

Leading Operator Successfully Deploys One of the World's First FMC Solutions

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

'As one of the largest broadband providers in Brazil, we see FMC as a new
opportunity to leverage our extensive network resources in a way that will
only benefit our customers' long term communications experiences,' said
Dalton
Hayakawa, director of marketing at Brasil Telecom. 'Utilizing UTStarcom's
mSwitch, Brasil Telecom can now offer its customers seamless call connectivity
between cellular and WiFi networks in an expanded coverage area. This will
allow us to retain more customers on our network as they transition between
fixed line and wireless devices and give us the opportunity to demonstrate the
value, strength and quality of our combined voice services.'

Brasil Telecom, one of Brazil's leading wireless and fixed-line
communications providers and incumbent telecom operators, will utilize
UTStarcom's mSwitch solution to enable fixed-line connectivity with GSM
platforms for call continuity between the two networks using a single wireless
device. The FMC solution enables Brasil Telecom to extend its current cellular
coverage area indoors using the new Voice Continuity Call (VCC) handover
between cellular and WiFi networks.

'We've all become somewhat accustomed to the inconvenience of the
occasional dropped wireless call or the necessary termination of a fixed-line
call when leaving the range of the base station,' said
Diego Martinez,
Americas regional vice president and general manager for UTStarcom. 'This FMC
solution deployment is an unprecedented step in the implementation of
next-generation telephony services and proves the viability of fixed-mobile
services as we take our first step toward a true IP Multimedia Subsystem -- or
IMS -- network architecture.'

UTStarcom has collaborated extensively with Brasil Telecom on the research
and development of IMS products and services and the implementation of mSwitch
protocols as a mobile softswitch for integration with IMS. Brasil Telecom also
launched their Internet Protocol TV (IPTV) services in September last year.
The Videon is a unique offering in Brasil and relies on UTStarcom's
industry-leading RollingStream(R) Internet Protocol TV (IPTV) solution.

About Brasil Telecom

Brasil Telecom is the first complete Brazilian telecommunications provider
to meet, in an integrated way, all market demands with converged solutions in
fixed and mobile telephony services, voice and data transmission, national and
international long-distance services, data center services, as well as
internet access (broadband and dial-up) and managed services product portfolio
for residential, enterprise, commercial and government customers. Brasil
Telecom has more than 8 million fixed lines in service and a broadband access
base in Latin America (over 1.6 million). In little more than three years,
numbers of mobile operation reached 4.5 million accesses. This performance
surprised the global telecommunications market and it gave Brasil Telecom the
first market share position among the 'fourth entrants' telecommunications
operators, in their markets. For further information, visit the company's Web
site at http://www.brasiltelecom.com.br.

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, IPTV,
NGN 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 development operations in the United States, Canada,
China, Korea and India. 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 within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, regarding the deployment of
UTStarcom products, including statements regarding the anticipated growth and
operation of the fixed mobile convergence network in Brazil. 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: the rapidly changing nature of telecommunications
equipment; economic issues in Brazil; possible delays in system deployment;
risks associated with customer acceptance; termination of new contracts,
partnerships or alliances; and changes in government regulation and licensing
requirements. 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.