Investor Relations

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UTStarcom and U.S. Bank National Association, the trustee under the
Indenture, have entered into a first supplemental indenture dated January 9,
2007 (the 'First Supplemental Indenture') implementing the Proposed
Amendments. The amendments contained in the First Supplemental Indenture will
be binding on all Holders, including non-consenting Holders.

Under the terms of the First Supplemental Indenture, during the period
beginning January 9, 2007 and ending 5:30 p.m., May 31, 2007, any failure by
UTStarcom to comply with certain provisions will not result in a default or an
event of default, and the Notes will accrue an additional 6.75% per annum in
special interest from and after January 9, 2007 to the maturity date of the
Notes, unless the Notes are earlier repurchased or converted. Payments of the
special interest will be made in addition to and at the same time and in the
same manner as regularly scheduled payments of interest to Holders entitled to
such regularly scheduled payments of interest.

Citigroup Corporate and Investment Banking served as the solicitation
agent for the consent solicitation. Questions regarding the Consent
Solicitation may be directed to Citigroup Corporate and Investment Banking at
800-558-3745 (toll-free) or 212-723-6106. The information agent for the
consent solicitation was Global Bondholder Services Corporation.

This announcement is not an offer to purchase or sell, a solicitation of
an offer to purchase or sell or a solicitation of consents with respect to any
securities. The solicitation was made solely pursuant to the Company's Consent
Solicitation Statement dated December 22, 2006 and the related Letter of
Consent, as amended and restated by the Supplemental Consent Solicitation
Statement dated January 8, 2007 and the related Amended Letter of Consent.
Notwithstanding the Company's receipt of the requisite consents, no assurance
can be given that an event of default under the Indenture will not occur in
the future.

Legal Notice Regarding Forward-Looking Statements

This press release includes statements that disclose UTStarcom's or
management's intentions, expectations or predictions of the future, including
statements about claims of default with respect to UTStarcom's notes and
potential consequences, and these statements are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act. UTStarcom
cautions that these statements involve risks and uncertainties and other
factors that may cause results to differ materially from those anticipated at
the time such statements are made. In addition, potential risks and
uncertainties include, among other things: (1) the results of the review of
UTStarcom's historical stock-based compensation practices and the related
potential accounting impact; (2) the timing of the completion of such review
by the special committee of UTStarcom's Board of Directors and the independent
outside legal counsel engaged by the committee to conduct the review; (3) any
potential restatement and filing of previously issued financial statements and
assessment of the effectiveness of disclosure controls and procedures and
internal control over financial reporting; (4) the review and filing of
UTStarcom's Form 10-Q for the fiscal quarter ended September 30, 2006; (5) the
possibility that the occurrence of an event of default under the indenture
could cause acceleration of repayment of the entire principal amounts and
accrued interest on the notes; (6) the possibility that the NASDAQ Listing
Qualifications Panel may not grant UTStarcom's request for an extension to
regain compliance with NASDAQ listing qualifications or UTStarcom's failure to
regain compliance within any extension period that is granted, in which case
UTStarcom's common stock would be delisted from The NASDAQ Stock Market; (7)
any adverse results of lawsuits or governmental inquiries; and (8) additional
risks and uncertainties and important factors described in UTStarcom's filings
with the SEC, including its most recent annual report on Form 10-K and its
most recent quarterly report on Form 10-Q. There can be no assurance that the
outcome of the review by UTStarcom's special committee of UTStarcom's past
stock-based compensation practices and the related potential accounting impact
will not result in a restatement of financial results provided by the company
for any historical period. Although UTStarcom believes the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, UTStarcom can give no assurance that its expectations will be
attained or that results will not materially differ. UTStarcom undertakes no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise, except as may be
required by law.

Forward-Looking Statements
This press release includes statements that disclose UTStarcom's or
management's intentions, expectations or predictions of the future, including
statements about claims of default with respect to UTStarcom's notes and
potential consequences, and these statements are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act. UTStarcom
cautions that these statements involve risks and uncertainties and other
factors that may cause results to differ materially from those anticipated at
the time such statements are made. In addition, potential risks and
uncertainties include, among other things: (1) the results of the review of
UTStarcom's historical stock-based compensation practices and the related
potential accounting impact; (2) the timing of the completion of such review
by the special committee of UTStarcom's Board of Directors and the independent
outside legal counsel engaged by the committee to conduct the review; (3) any
potential restatement and filing of previously issued financial statements and
assessment of the effectiveness of disclosure controls and procedures and
internal control over financial reporting; (4) the review and filing of
UTStarcom's Form 10-Q for the fiscal quarter ended September 30, 2006; (5) the
possibility that the occurrence of an event of default under the Indenture
could cause acceleration of repayment of the entire principal amounts and
accrued interest on the notes; (6) the possibility that the NASDAQ Listing
Qualifications Panel may not grant UTStarcom's request for an extension to
regain compliance with NASDAQ listing qualifications or UTStarcom's failure to
regain compliance within any extension period that is granted, in which case
UTStarcom's common stock would be delisted from The NASDAQ Stock Market; (7)
any adverse results of lawsuits or governmental inquiries; and (8) additional
risks and uncertainties and important factors described in UTStarcom's filings
with the SEC, including its most recent annual report on Form 10-K and its
most recent quarterly report on Form 10-Q. There can be no assurance that the
outcome of the review by UTStarcom's special committee of UTStarcom's past
stock-based compensation practices and the related potential accounting impact
will not result in a restatement of financial results provided by the company
for any historical period. Although UTStarcom believes the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, UTStarcom can give no assurance that its expectations will be
attained or that results will not materially differ. UTStarcom undertakes no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise, except as may be
required by law.

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 .

SOURCE UTStarcom, Inc.