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UTStarcom Signs Approximately $100 Million in Infrastructure Contracts With China Telecom for Expansion of Its IP-Based PAS Networks

Posted on: Monday, 11 July 2005, 09:00 CDT

ALAMEDA, Calif., July 11 /PRNewswire-FirstCall/ -- UTStarcom, Inc. , a global leader in IP-based, end-to-end networking solutions and services, today announced that it has signed infrastructure contracts valued at approximately $100 million with China Telecom Corporation (CTC). These contracts will expand the operator's existing IP-based PAS (Personal Access System) (iPAS(TM)) networks in China's Jiangsu, Zhejiang, Hubei, Shanghai, Guangdong, Guangxi, Fujian and Yunnan provinces.

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

"According to China's Ministry of Information Industry (MII), PAS subscribers in China grew at a rate of 12.5 percent in the first five months of this year as total subscribers surpassed 77 million by the end of May," said Simon Le, senior vice president of sales at UTStarcom China. "During that same time period, PAS subscribers accounted for approximately 60 percent of all fixed-line subscriber additions. While new network construction has slowed, PAS continues to be the best technology satisfying the market demand for wireless telecommunication service in China and a key business driver for the fixed-line operators."

PAS Wireless Access Solutions

Field proven in one of the fastest growing telecom markets in the world, UTStarcom's PAS solutions offer subscribers citywide wireless voice and data services at affordable prices. Using UTStarcom's IP next-generation softswitching technology, the PAS solution is designed to enable operators to extend their fixed-line networks with feature-rich wireless services, rapidly expand networks to meet increased subscriber demand, and seamlessly integrate broadband and future 3G technologies into their service portfolios.

UTStarcom's PAS and iPAS(TM) (IP-Based Personal Access System) services offer service providers and subscribers unique and attractive advantages over competing wireless services. For operators, PAS is designed to provide a two- to-three year return on investment (ROI), increase average revenue per user (ARPU), and provide the ability to support new applications and diversified value-added services. For subscribers, PAS is designed to provide affordable mobile telecommunications service with an array of features. In addition to high-quality voice service, UTStarcom PAS users enjoy short messaging service (SMS), C-MODE based web browsing, 64Kbps wireless Internet access, and location-based services.

UTStarcom's proven expertise in IP technology and its mSwitch(TM) converged next-generation softswitching platform give it an advantage over other global telecom vendors. UTStarcom's converged switching platform is designed to allow operators to deploy iPAS, 3G, and wireline/broadband services side-by-side utilizing a common switching infrastructure to address a wide range of user needs and interests. With more than 55 million lines of next-generation softswitching deployed throughout Mainland China, Taiwan, Vietnam, Thailand, Africa, and Latin America, UTStarcom is the worldwide leader in IP core networking.

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 wireline, wireless, optical and switching solutions to operators in both fast growth 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 New Jersey, China, and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, visit the company's Web site at http://www.utstar.com/.

Forward-Looking Statements

The foregoing statements regarding, without limitation, those regarding the anticipated expansion of UTStarcom's existing IP-based PAS networks, the anticipated growth in PAS subscriber demand, the anticipated benefits to operators, service providers and subscribers of PAS and iPAS and the anticipated benefits to operators of the mSwitch converged switching platform are forward-looking in nature and are subject to risks and uncertainties that may cause actual results to differ materially. These factors include rapidly changing technology, the changing nature of the telecommunications markets in general and PAS services in particular, the possibility of slower than expected growth in the telecommunications markets, evolving product and application standards, changes or delays in product introductions and deployments, the termination or material amendment of significant contracts, partnerships or alliances, and other uncertainties, such as changes in government regulation and licensing requirements in relevant markets. UTStarcom also refers readers to the risk factors identified in its 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.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

UTStarcom, Inc.

CONTACT: Chesha Kamieniecki, Senior Manager of Investor Relations ofUTStarcom, Inc., +1-510-749-1560; or press, Stephanie Gallagher of Engage PR,+1-510-388-3287

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

Source: PRNewswire-FirstCall

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