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UTStarcom Completes Sale of Facility in Hangzhou China

May 26, 2010 (PR Newswire) --

ALAMEDA, Calif., May 26 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI) today announced that the title has been transferred to the
buyer in relation to its previously announced sale of its facility in Hangzhou,
China to the Zhongnan Group of Companies.

Pursuant to this transaction the Company sold its 2.6 million square foot
manufacturing operations, research and development and administrative offices
facility as well as certain other assets related to the property for a total
purchase price of RMB 950 million (approximately US $140 million), or RMB 900
million (approximately US $132 million) net of taxes. To date, the Company
has received approximately RMB 855 million of the purchase price and taxes on
the transaction have been paid. The remaining purchase price is to be paid
following the inspection and handover of the property. As previously
disclosed, UTStarcom is leasing back a portion of the building to maintain its
current operations and presence in Hangzhou. The anticipated commencement
date of this leaseback is May 27, 2010.

"We are very pleased to deliver on our commitment to monetize our
underutilized facility in Hangzhou, China," said Peter Blackmore, chief
executive officer and president of UTStarcom. "With this significant infusion
of cash, UTStarcom has strengthened its debt free balance sheet and is in a
stronger competitive position."

Jones Lang LaSalle acted as a real estate advisor to the Company.

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 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, China, and India.
For more information about UTStarcom, visit the Company's Web site at
https://www.utstar.com .

Forward-Looking Statements

This release includes forward-looking statements, including statements
regarding profitable growth and the Company's long-term strategy. These
statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. These risks
include the ability of the Company to realize anticipated results of
operational improvements, increase bookings, successfully transition to a new
management team and headquarters location and execute on its business plan as
well as 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. The Company is in a period of
significant transition and in the conduct of its business is exposed to
additional risks as a result. All forward-looking statements included in this
release are based upon information available to the Company as of the date of
this release, which may change, and we assume no obligation to update any such
forward-looking statement.

    For more information, please contact:

     Linda Rothemund
     Market Street Partners for UTStarcom, Inc.
     Tel: +1-415-445-3236

SOURCE UTStarcom Inc.