Investor Relations

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

'Today, MultiFon reaches more than 100,000 subscribers throughout Honduras
and we are constantly looking for new services and technologies to offer
better and more affordable communications to our customers,' said
Jose Luis
Rivera, executive director of MultiFon. 'Our success is due to UTStarcom's
ability to quickly and easily deploy its iPAS technology coupled with the
close collaboration of our integration teams to ensure a consistent and
reliable quality of service.'

The leader in offering fast, cost-effective access to fixed-wireless
services, MultiFon is the first of 19 private telephone companies in Honduras
that were created based on the 'Telephony for All' presidential initiative.
The operator launched its fixed-wireless network based on UTStarcom's iPAS
platform in June 2004 with a 50,000-subscriber network capacity and expanded
the initial deployment in September 2005.

'We believe our iPAS technology, commercially deployed in support of more
than 55 million subscribers around the world, has become the technology of
choice in low teledensity areas in Latin America and the Caribbean where the
affordable and rapid deployment of reliable telecommunications networks is
crucial,' said
Rene Mendez, vice president of sales and marketing for the
UTStarcom's Caribbean and Latin American market. 'We hope to continue our
already successful partnership with MultiFon in Honduras and expand our
presence throughout Latin America wherever affordable wireless communications
is needed.'

'Telephony for All, Modernization for Honduras'

The 'Telephony for All' program was introduced by the Honduran government
in September 2003 and plans to provide basic, fixed telephony services to all
regions in Honduras, a country with the second lowest fixed-line penetration
in Latin America. The program was designed to bring modernization and a
competitive spirit to the telecommunications industry, decrease current rates,
create thousands of new jobs in the country, and enable companies to install
at least 300,000 fixed telephone lines -- a number still below Honduras'
current unmet demand.

About MultiFon

MULTIFON, a subsidiary of The MultiData Group, was specifically created to
provide fixed telephony services to the business and residential sectors under
the project 'Telephony For All,' which was announced and supported by the
government of
President Ricardo Maduro. Being the first and leading provider
of telecommunication services in Honduras, MultiFon has the support of a group
of companies with the highest level of experience in the telecommunications
industry of Honduras.

MULTIDATA S.A. is the leading private provider of data transmission and
broadband services in Honduras. Created by a group of executives from top
media venues and three of the largest banks in the country, MultiData has
operations in 19 cities in Honduras and access to more than 200 countries
around the world, through the largest international data transmission
providers.

With the largest market share in Honduras, MULTIDATA uses its own
network -- fiber optic, ADSL copper networks, microwave links, and
last-generation wireless distribution systems -- to provide its services. Its
solutions have extended to more than 85 percent of the financial sector, as
well as more than 60 percent of manufacturing companies in Honduras and other
top companies in various production sectors. In 2002, the company became the
first one in the country to simultaneously connect to submarine cables MAYA I
and ARCOS I for Internet access and IPL services. Currently, MultiData is the
largest capacity provider in the country.

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 by and about UTStarcom,
including the foregoing statements regarding the anticipated continuation of
partnership between UTStarcom and MultiFon, and the expectations regarding
expansion of UTStarcom's presence throughout Latin America. 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 the
changing nature of global telecommunications markets, both in Honduras and
globally, the termination of significant contracts and strategic
relationships, reduction or delays in system deployments, product transitions,
changes in demand for and acceptance of UTStarcom's products, general adverse
economic conditions, and trends and uncertainties such as changes in
government regulation and licensing requirements, both in Honduras and
globally. UTStarcom 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.