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UTStarcom Deploys Largest GEPON Network in the World for Japan's Softbank

Posted on: Monday, 4 October 2004, 06:00 CDT

ALAMEDA, Calif., Oct. 4 /PRNewswire-FirstCall/ -- UTStarcom, Inc. , a global leader in IP access networking and services, today announced it has received initial purchase orders valued in excess of $60 million from Softbank BB, the leading provider of broadband services in Japan, for its carrier-class Gigabit Ethernet Passive Optical Network (GEPON) solution in support of the Softbank's new Fiber-to-the-Home (FTTH) service, which started on October 1, 2004.

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

"We believe that UTStarcom's GEPON solution is the most cost-effective, feature-rich broadband solution in the industry today," said Keiichi Makizono, general manager of technical division at Softbank BB. "GEPON is an ideal technology to deliver FTTH broadband service because it leverages the simplicity of Ethernet and the high speeds of fiber, enabling us to deliver the high-bandwidth, triple-play applications that our subscribers want at costs they can afford."

The announcement was made at a press conference today at the Hotel Okura Tokyo to kick off Softbank BB's new FTTH service. Softbank BB featured a live demo using UTStarcom's BBS1000(TM) GEPON technology to deliver high-quality streaming video content at one gigabit per second data rates to high-definition plasma televisions over optical fiber lines. This GEPON service is a first of its kind of service to be offered in the world. UTStarcom expects to recognize revenue for the contract in the second half of 2005.

"This contract and public demonstration represent the next step in a long-term relationship between UTStarcom and Softbank BB that will put us both at the forefront in delivering next-generation broadband services to the Japanese market," said Michio Nakanishi, president and chief executive officer of UTStarcom Japan K.K. "As more service providers around the world move towards offering the triple play of voice, high-speed data and streaming video services to their subscribers, we believe that GEPON technology will prove to be the best means of delivering these revenue-generating services to both the residential and business subscriber."

Over the last several quarters, UTStarcom has undertaken a dynamic evolution from a company that had been primarily focused in the China market and its highly successful PAS technology to a global leader in the development of next-generation telecommunications solutions. As the company continues to focus on diversifying its global customer base and expanding its product portfolio, UTStarcom expects to experience some short-term volatility associated with the timing of recognition for international revenues and the maturation of the PAS market in China as the company has been communicating. These short-term challenges are inherent to a corporate transformation of this magnitude, but will also solidify the company's position as a leader in the market and strengthen the company for continued long-term success. Based on the diversification of the company's solutions and the expansion of its relationships with top-tier carriers around the world, UTStarcom is confident in its long-term growth and its ability to deliver profitability and value to its shareholders in 2005 and beyond.

A Complete End-to-End GEPON Solution

Compliant with all IEEE standards, UTStarcom's GEPON product family includes a BBS1000 Optical Line Termination system (OLT) for deployment at the Central Office (CO) as well as an Optical Network Unit (ONU) for deployment at the customer's premises. The OLT provides a direct optical interface to the IP core, while the ONU terminates the PON at the customer's premises. Together, the two units complete the end-to-end optical last mile, providing up to one gigabit per second of bandwidth to residential and business customers.

Advanced Layer 2 and Layer 3 switching and routing functionality eliminates the need for carriers to deploy additional network equipment at the metro edge, making GEPON an optimal transport platform for support of bandwidth-intensive triple-play services. Powerful embedded Operation, Administration, and Maintenance (OAM) functions enable operators to perform remote diagnosis, flexible provisioning, and system reconfiguration, as well as remote system upgrades without hardware swap out.

About UTStarcom, Inc.

UTStarcom is a global leader in IP access 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, the amount of revenue expected to be generated under the contract with Softbank BB, the nature of the relationship between UTStarcom and Softbank BB, the cost-effectiveness of the GEPON solutions, the deployment of UTStarcom's products by Softbank BB and the ability of Softbank BB to expand its FTTH service 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 Japan's telecommunications market, evolving product and application standards, changes or delays in product introductions and deployments, possible downturns in the markets of Japan generally and worldwide, the termination of significant contracts, partnerships or alliances, specifically with Softbank BB, and other uncertainties, such as changes in government regulation and licensing requirements in Japan. 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, Jeannette Bitz of Engage PR,+1-510-748-8200, ext. 207, or jbitz@engagepr.com, for UTStarcom Inc.

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

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