July 14, 2008

UTStarcom Continues IPTV Momentum in India With Aksh Optifibre Contract

ALAMEDA, Calif., July 14 /PRNewswire-FirstCall/ -- UTStarcom, Inc. , today announced it has signed a new contract with Aksh Optifibre, Ltd. (BOM: 532351) that expands the operator's deployment of the industry-leading RollingStream(R) Internet Protocol TV (IPTV) solution. UTStarcom's second deal with Aksh demonstrates the company's continued commitment to building and delivering IPTV capabilities throughout India.

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Aksh originally selected UTStarcom in early 2007 to deliver the first commercial IPTV service in India through Mahanagar Telephone Nigam Ltd. (MTNL) in Delhi. The current contract helps Aksh extend its reach and deliver the same high-quality IPTV services to subscribers of MTNL in Mumbai, India.

Aksh announced the launch of its IPTV and VoIP services in Mumbai on the MTNL network in March 2008, as an expansion to the initial launch of these services on the MTNL Delhi network in July 2007.

One of India's leading optical fibre cable manufacturers and one of the first companies in India to set up its own fibre optic manufacturing units, Aksh is delivering next-generation telecommunications services in the fast-growing India market.

"UTStarcom's RollingStream IPTV solution is a completely IP-based platform that will enable better delivery of the interactive entertainment services we plan to extend to our customers," said Dr. Kailash S. Choudhari, managing director at Aksh Optifibre Ltd. "Innovation brings progress and Aksh understands the importance of maintaining cutting-edge technology as India embarks on pivotal IPTV growth. Our relationship with UTStarcom to bring the first IPTV service to India led that innovation, and now we are hoping to bring those high-quality entertainment services to more subscribers."

UTStarcom's RollingStream end-to-end IPTV system supports more than 850,000 live IPTV subscribers globally. The system maintains a current total system capacity exceeding 2.5 million subscribers as a result of recent successful deployments in China with China Netcom and China Telecom, in India with Bharti Airtel, MTNL/Aksh and United Telecoms Limited, in Sri Lanka with SLT, in Japan with Softbank, in Latin America with Brasil Telecom, in Taiwan with Markwell and in Europe with Jersey Telecom.

UTStarcom was recently recognized with two award distinctions for the company's IPTV and broadband work and advancement in India. VARIndia named UTStarcom this year's "Most Trusted Company" in India in the areas of broadband and IPTV leadership. UTStarcom also received an "Excellence in Telecom Services and Solutions" award from the Telecom Equipment Manufacturers Association (TEMA) in India for the company's innovation in IPTV, broadband and NGN and its direct impact on India's telecom market growth.

"IPTV is building steady momentum in India and UTStarcom's understanding of the growing environment gives us a market advantage," said Vijay Yadav, vice president and managing director, South Asia operations, UTStarcom. "UTStarcom's relationship with Aksh will assist the operator in bringing more IPTV-based services to its customers, increasing revenue opportunities and maintaining its leadership position in India."

About Aksh Optifibre, Ltd.

Gurgaon-based Aksh Optifibre Ltd. is a leading optical fibre cable manufacturer in India. The company produces a variety of cables, including singlemode and multimode cables; duct cables; armored and aerial cables; indoor and outdoor cables; and ribbon fiber optic cables. Aksh was one of the first companies in India to set up its own fiber optic manufacturing units. The company's main product is a Fiber-to-the-Home solution. Aksh is the first company to provide IPTV Services in India with the largest subscriber base.

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/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding UTStarcom's future strategy, including statements regarding the anticipated growth of IPTV services in Mumbai and Delhi, India. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. Factors that could cause actual results to differ materially from those contained in our forward-looking statements include: increased competition; economic issues in the identified geographic markets; possible delays in system deployment; risks associated with customer acceptance; termination of new contracts, partnerships or alliances; changes in anticipated number of subscribers and traffic; and changes in government regulation and licensing requirements. Please also refer to UTStarcom's periodic reports that are filed from time to time with the Securities and Exchange commission, including our latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. UTStarcom assumes no obligation to, and does not currently intend to, update these forward-looking statements.

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UTStarcom, Inc.

CONTACT: Darleen DeRosa, Senior Director, Corporate Public Relations ofUTStarcom, Inc., +1-510-769-2830, [email protected]; or Sara Zavala,Senior Account Executive of Edelman, +1-702-644-2465, [email protected],for UTStarcom, Inc.

Web site: http://www.utstar.com/