IR/インベスターリレーションズ

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

Without admitting or denying the allegations in the SEC's complaint, the
Company has agreed to settle the charges by consenting to a permanent
injunction against any future violations of the reporting, books-and-records
and internal control provisions of the federal securities laws. No monetary
penalties were assessed against the Company in conjunction with today's
announced settlement. This settlement with the SEC does not include the
investigation of possible violations of the Foreign Corrupt Practices Act
which is ongoing with the Department of Justice.

Hong Lu, the Company's current Chief Executive Officer and a director of
the Company, also agreed to settle with the SEC without admitting or denying
the allegations in the SEC's complaint, by paying a civil penalty of $100,000
and consenting to a permanent injunction on similar terms as the Company. Mr.
Lu's settlement is subject to a final judgment by a United States District
Court.

'We are pleased to conclude this investigation with the SEC as we have
spent significant time and energy to resolve these historical matters,' stated

Fran Barton, chief financial officer of UTStarcom. 'With these matters behind
us we can now redirect our efforts towards realizing UTStarcom's technological
advantages and growth opportunities.'

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.

SOURCE UTStarcom, Inc.