Investor Relations

UTStarcom-China Netcom Deal to Be the Single Largest IPTV Capacity Deployment in China

'We believe that UTStarcom's IPTV technology and service epitomizes the
evolution of network and service convergence,' said
Ying Wu, chief executive
officer of UTStarcom China. 'We believe the Harbin case indicates that a
typical business model and value chain for IPTV in China is emerging and that
there are large market opportunities and consumer demand throughout many
regions. With this contract, UTStarcom continues to prove its position at the
forefront of real-world IPTV deployments with the largest number of
subscribers.'

The contract is based on a commercial trial that was launched in May 2005.
The initial deployment had a capacity of 100,000 concurrent media streams,
covering the major metropolitan areas of the city. Currently, the service
offers channels of live broadcast television with 'time-shifting'
capabilities, 48-hour TV-on-demand, and approximate 5,600 hours of
video-on-demand. At the same time, there are value-added services, such as
on-line weather report, information browsing, and searching services available
in the service package as well. The service has accumulated approximately
53,000 subscribers to date. UTStarcom has also announced commercial contracts
in Shanghai and Fuzhou and Quanzhou in the Fujian Province, with an initial
combined capacity of over 50,000 media streams.

About UTStarcom's RollingStream

UTStarcom's RollingStream is an end-to-end solution designed for
telecommunications operators and broadband service providers to deliver
broadcast quality TV and on-demand entertainment programming over IP networks.
RollingStream is designed to offer service providers the scalability,
reliability, and bandwidth efficiency to support new services including
broadcast TV, Network PVR (n-PVR), Video on Demand (VoD), and Near Video on
Demand (NVoD) over existing network infrastructures. This results in
opportunities for increased revenues, new services, and improved customer
satisfaction and retention.

For more information about UTStarcom's RollingStream solution, please
visit: http://www.utstar.com/Solutions/Broadband/IPTV .

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, 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, including the foregoing
statements regarding the anticipated size and location of deployments of the
Company's IPTV solutions in China, the anticipated significance of the
Company's IPTV technology and service in the telecommunications market, the
anticipated emergence of IPTV-based business model and value chain, the
anticipated growth of market and consumer demand for IPTV in various regions
of China, the expectation that the RollingStream solution can help service
providers deliver broadcast quality TV and on-demand entertainment programming
over IP networks, the expectation that RollingStream will enable service
providers to support new services over existing network infrastructures, and
the expectation that RollingStream will present service providers with
opportunities for increased revenues, new services, and improved customer
satisfaction and retention. 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 rapidly changing technology, the
changing nature of global telecommunications markets, both in China and
globally, the termination of significant contracts, the direction and results
of future research and development efforts, evolving product and applications
standards, reduction or delays in system deployments, product transitions,
changes in demand for and acceptance of the Company's products, general
adverse economic conditions, and trends and uncertainties such as changes in
government regulation and licensing requirements, both in China and globally.
The Company 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.