Investor Relations

Contract Win Follows Announcement of Company's First IPTV Deployment in Latin America

(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)

Markwell, a provider of cable, content and Internet services -- including
co-location, virtual hosting, security monitoring, education training, and
online shopping -- will utilize the end-to-end RollingStream system to deploy
IPTV-enabled triple play services throughout Taiwan.

'UTStarcom's RollingStream IPTV solution is a field-proven platform for
the delivery of IP-based television services as well as a comprehensive host
of converged communication and entertainment applications that today's
generation of Internet-savvy subscribers demand,' said
Richard Lai, chairman
and chief executive officer at Markwell Industrial Co., Ltd. 'We are currently
in discussions with a number of cable operators in Taiwan who are interested
in complementing their existing offering with IPTV-enabled services, and we
anticipate surpassing more than one million IPTV subscribers in the country by
2009.'

UTStarcom's RollingStream system currently supports more than 600,000 live
IPTV subscribers globally and maintains a current total system capacity of
more than one million subscribers as a result of recent successful deployments
in China with China Netcom and China Telecom, in India with Bharti Airtel and
MTNL/Aksh, in Japan with Softbank and in Latin America with Brasil Telecom.

'Despite competition from the incumbent cable operators, we expect the
additional value-added applications enabled by IPTV will make it a success in
Taiwan,' said
David King, senior vice president of sales, marketing and
service for UTStarcom, Inc. 'By coupling IPTV service with Video-on-Demand,
Voice-over-IP and high-speed Internet access, telecom operators around the
world are opening up new revenue streams not previously accessible and
enhancing their ability to retain subscribers in a highly competitive
landscape.'

The Markwell contract includes system capacity for 500,000 RollingStream
IPTV subscribers and 20,000 set-top boxes initially. Markwell plans to deploy
an additional 480,000 RollingStream set-top boxes over the next two years.

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 development operations in the United States, Canada,
China, Korea and India. For more information about UTStarcom, visit the
company's Web site at http://www.utstar.com.

About Markwell Industrial Co., Ltd.

Markwell Industrial Co., Ltd. was established in 1992 as a global
telecommunications corporation. Based in Taiwan, Markwell delivers core
communications and entertainment services to consumers throughout Asia with
its cable and Internet content and technology solutions. The company recently
received a Golden Award from the Taiwan government in recognition of their
FTTH services. For more information on the company, please visit
http://www.markwell.com.tw.

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995

The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of Section 21E of
the Securities and Exchange Act of 1934, as amended, including statements
regarding UTStarcom's expectations, beliefs, intentions or strategies
regarding the future and including, without limitation, the anticipated growth
in demand for IPTV in Taiwan; the rapidly changing nature of IPTV and other
technology: the rapidly changing nature of the telecommunications market in
Taiwan; possible delays in system deployments or product introductions; the
termination of new contracts, partnerships or alliances; and changes in
government regulation and licensing requirements in Taiwan.

All forward-looking statements included in this document are based upon
information available to UTStarcom as of the date hereof, and UTStarcom
assumes no obligation to update any such forward-looking statements. Forward-
looking statements involve risks and uncertainties, which could cause actual
results to differ materially from those projected. These risks and other risks
relating to UTStarcom's business are set forth in the documents filed by
UTStarcom with the Securities and Exchange Commission, specifically its most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, and amendments thereto.

SOURCE UTStarcom, Inc.