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UTStarcom Receives NASDAQ Notification Related to Late Filing of Its Form 10-Q for the First Quarter of 2006

ALAMEDA, Calif., May 18 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), today announced that, as expected, the Company has received an
additional Nasdaq Staff Determination Notice stating that the Company has
failed to file its Quarterly Report on Form 10-Q for the quarter ended March
31, 2006 (the 'Q1 2006 Form 10-Q') and, therefore, is not in compliance with
Marketplace Rule 4310(c) (14). As previously disclosed, Nasdaq initially
informed the Company on March 20, 2006 that its securities would be delisted
for failure to timely file its Form 10-K for the fiscal year ended December
31, 2005 (the '2005 Form 10-K'), unless the Company requested a hearing in
accordance with applicable Nasdaq Marketplace rules. The Company subsequently
requested and was granted a hearing with the Nasdaq Listing Qualifications
Panel (the 'Listing Panel') on April 20, 2006. On May 10, 2006, the Listing
Panel granted a conditional extension to the Company's request for continued
listing on the Nasdaq National Market until June 15, 2006 for the Company to
make its requisite filings. This extension granted by the Listing Panel
expressly contemplated the delayed filing of the Q1 2006 Form 10-Q.

UTStarcom Receives NASDAQ Notification Related to Late Filing of Its Form 10-Q for the First Quarter of 2006
UTStarcom Receives NASDAQ Notification Related to Late Filing of Its Form 10-Q for the First Quarter of 2006

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

As previously announced, the delay in filing the 2005 Form 10-K is due to
the Company needing additional time (i) to enable the Audit Committee of the
Board of Directors of the Company to complete an investigation with regard to
the circumstances surrounding the premature recognition of revenue on a
contract with a customer in India and certain other transactions and (ii) for
management to complete the preparation of its 2005 consolidated financial
statements and its assessment as of December 31, 2005 of the Company's
internal control over financial reporting under Section 404 of the
Sarbanes-Oxley Act of 2002. The Company currently anticipates filing the 2005
Form 10-K on or about June 1, 2006 and the Q1 2006 10-Q on or about June 15,
2006
.

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 design operations in the United States, China, Korea
and India. UTStarcom is a FORTUNE 1000 company.

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

Forward-Looking Statements

The foregoing statements regarding, without limitation, statements about
the anticipated date of filing with the Securities and Exchange Commission of
the 2005 Form 10-K and the Q1 2006 Form 10-Q, are forward-looking in nature.
Those statements are subject to risks and uncertainties that may cause actual
results to differ materially, including the risks that the Audit Committee's
investigation and/or management's preparation of the Company's 2005
consolidated financial statements and its assessment of the Company's
internal control may not be completed prior to June 1, 2006 and June 15, 2006,
respectively. The Company also refers readers to the 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.

SOURCE UTStarcom, Inc.