Investor Relations

BEIJING, Nov. 11, 2010 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc. (Nasdaq: UTSI) a leader in IP-based network solutions for IPTV, Internet TV and Broadband operators in the cable and telecom sectors announced today that it has closed a previously announced transaction with Stage Smart Limited ("Stage Smart").

Under the terms of the transaction, UTStarcom acquired a 75% interest in Stage Smart for US$ 30 million.  The total consideration UTStarcom paid has two parts: 1) US$20 million in cash to Stage Smart in exchange for preferred stock. These funds will be used as working capital by Stage Smart. 2) 4,473,272 shares of UTStarcom's common stock issued to Smart Frontier Holdings Limited, Stage Smart's sole shareholder. In exchange for this two part consideration, UTStarcom owns a majority of the outstanding ordinary shares and all of the preferred stock of Stage Smart.

About UTStarcom, Inc.

UTStarcom is a leader in IP-based network solutions for IPTV, Internet TV and Broadband operators in the cable and telecom sectors. The Company sells its solutions to operators in both emerging and established telecommunications and cable 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, listed in NASDAQ in 2001, the Company has its operational headquarters in Beijing, China and research and development operations in China and India. For more information about UTStarcom, please visit the Company's Web site at http://www.utstar.com.

Forward-Looking Statements

The statements in this news release are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These uncertainties include 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. 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.

SOURCE UTStarcom, Inc.