Investor Relations

ALAMEDA, Calif., May 25 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI) today announced the sale of its IP Messaging and US PDSN Assets
to NewNet Communication Technologies, a Skyview Capital portfolio company and
a recognized leader in text messaging and network signaling solutions for
wireless, IP, and wireline networks. Under the terms of the agreement, NewNet
Communication Technologies will also become a reseller of the UTStarcom core
IP-based product portfolio in the North America and Latin American regions.
Terms of the agreement were not disclosed. The transaction is expected to
close in June of 2010.

"We are pleased to be partnering with NewNet Communication Technologies,
which we are confident will provide exceptional localized service to UTStarcom
customers as our reseller in the Americas region," said Peter Blackmore, chief
executive officer and president of UTStarcom. "We feel this indirect sales
approach for our core IP-based products will be a more effective and
successful go-to market strategy for this region of the world. This agreement
further simplifies our operations and is consistent with our stated strategy
to maximize UTStarcom's opportunities in our core IP-based product offerings."

Mr. Blackmore added, "We are also confident that NewNet Communication
Technologies is well positioned to continue to develop, market and service our
well received IP Messaging and PDSN products."

"We are excited to enter into this agreement with UTStarcom as it expands
our portfolio of telecom solutions and our reach into the Latin American
region," said Ron Pyles, chief executive officer and president of NewNet
Communication Technologies. "We will go to market aggressively with these new
assets as well as the UTStarcom IP-based product portfolio."

Alex Soltani, chairman of Skyview Capital, said, "Having previously
acquired the Traxcom product family from UTStarcom we are pleased to have
worked with this industry leader in advancing our plan for expanding NewNet's
presence in the global telecommunications market. We are particularly happy
that this transaction allows us, through the associated reseller agreement, to
form an ongoing relationship with UTStarcom."

NewNet Communication Technologies will continue to service and provide
localized support to existing UTStarcom customers. To facilitate this
transition key personnel from UTStarcom will be hired on to the new
organization as a part of the agreement.

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.
Founded in 1991 and headquartered in Alameda, California, the Company has
research and development operations in the United States, China, and India.
For more information about UTStarcom, visit the Company's Web site at
http://www.utstar.com .

About NewNet Communications Technologies

Headquartered in Trumbull, Connecticut, NewNet Communication Technologies
LLC is a recognized leader in text messaging and network signaling solutions
for wireless, IP, and wireline networks. NewNet's robust, scalable telecom
signaling platforms have enabled the rapid development and deployment of over
four thousand carrier grade, revenue generating applications worldwide. NewNet,
a pioneer in text messaging systems has been deployed messaging platforms to
mobile operators in over 60 counties. For nearly two decades, NewNet CT has
been synonymous with signaling platform excellences and is the trusted name in
SS7 signaling solutions. For more information, visit http://www.newnet.com .

About Skyview Capital, LLC

Skyview Capital, LLC, is a private investment firm headquartered in
Beverly Hills, California, which specializes in the acquisition and management
of "systems - critical" businesses in the areas of technology,
telecommunications, business services, and niche manufacturing. By leveraging
its operational capabilities and financial strength, Skyview systematically
enhances the long-term value of the companies it acquires. For more
information, visit http://www.skyviewcapital.com .

Forward-Looking Statements

This release includes forward-looking statements, including statements
regarding profitable growth and the Company's long-term strategy. These
statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. These risks
include the ability of the Company to realize anticipated results of
operational improvements, increase bookings, successfully transition to a new
management team and headquarters location and execute on its business plan as
well as 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. The Company is in a period of
significant transition and in the conduct of its business is exposed to
additional risks as a result. All forward-looking statements included in this
release are based upon information available to the Company as of the date of
this release, which may change, and we assume no obligation to update any such
forward-looking statement.

    For more information, please contact:

     Linda Rothemund
     Market Street Partners for UTStarcom, Inc.
     Tel: +1-415-445-3236

     Sal Morlando
     NewNet Communication Technologies
     Tel: +1-203-500-5388

     Christopher Aye
     Skyview Capital
     Tel: +1-310-273-6000

SOURCE UTStarcom Inc.