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China Telecom to Expand Commercial IPTV Coverage in Shanghai With Utstarcom's RollingStream End-To-End IPTV Solution

ALAMEDA, Calif., July 12 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that it has signed a follow-on contract to
deploy its RollingStream(TM) end-to-end IPTV solution to China Telecom, the
largest fixed-line telecom operator in China. The commercial IPTV network is
initially designed to support 51,000 users in Shanghai, which is also the
largest city in China with a population of approximately 18 million. The
number of broadband users in Shanghai continues to grow at a rapid rate
approaching two million subscribers at the end of first quarter of 2006.
UTStarcom believes these factors provide a solid foundation for the IPTV
market in both Shanghai and China.

China Telecom to Expand Commercial IPTV Coverage in Shanghai With Utstarcom's RollingStream End-To-End IPTV Solution
China Telecom to Expand Commercial IPTV Coverage in Shanghai With Utstarcom's RollingStream End-To-End IPTV Solution

Deal Represents Follow-On IPTV Contract in Shanghai

(Logo: https://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO )

'We believe the opportunity to deploy a commercial IPTV network with China
Telecom for a large number of additional subscribers in Shanghai will lay a
solid foundation for UTStarcom's future market development of IPTV in China,'
said
Ying Wu, chairman and CEO of UTStarcom China. 'We believe that
RollingStream is the best-in-class IPTV solution in the market. It is a
mature, IP-based platform that is designed to provide carrier-class, end-to-
end triple-play services to carriers worldwide.'

Prior to this deployment, China Telecom Shanghai selected UTStarcom to
deploy an initial 5,000-user IPTV network in November 2005. During the first
stage of deployment, UTStarcom's RollingStream solution was put through a
rigorous series of technology tests. The outstanding performance of the
RollingStream platform, in terms of system reliability, stability, and feature
enrichments, led the company to choose UTStarcom as the leading equipment
supplier for IPTV service in Shanghai.

Partnering with Shanghai Media Group (SMG), a leading multimedia
television content provider, China Telecom Shanghai plans to offer subscribers
a service package of live broadcast television and videos-on-demand.
Additionally, the service is designed to offer subscribers 'time-shift'
capabilities -- the ability to pause and rewind live television, as well as an
expansive amount of storage to record any program and watch on each
subscriber's own schedule. Shanghai is the largest city of China with a total
population of approximately 18 million. The number of broadband users in
Shanghai approached two million at the end of first quarter of 2006. UTStarcom
believes these factors provide a solid foundation for the addressable market
of IPTV in China.

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 may result in
opportunities for increased revenues, new services, and improved customer
satisfaction and retention.

For more information about UTStarcom's RollingStream solution, please
visit: https://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, 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.

Forward-Looking Statements

This release includes forward-looking statements by and about UTStarcom,
including the foregoing statements regarding the anticipated number of IPTV
users in Shanghai, the anticipated impact of the China Telecom contract on
UTStarcom's IPTV market development in China, the anticipated functionality
and features of RollingStream, the anticipated service offering by China
Telecom and its key features, the anticipated impact of such service offering
on the ability of UTStarcom to address the IPTV market in China, and the
anticipated commercial benefits of RollingStream for service providers,
including 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,
potential non-realization of backlog, changes in demand for and acceptance of
UTStarcom's products, general adverse economic conditions, and trends and
uncertainties such as changes in government regulation and licensing
requirements, both in China and globally. UTStarcom 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.