Investor Relations

New Name Better Reflects Company's Focus on Providing Streaming Video Solution for Service Providers

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

'We believe the rebranding of our field-proven IPTV solution to
RollingStream better articulates the function of UTStarcom's IPTV product
family to enable service providers to offer their subscribers a variety of
streaming applications over a single platform,' said
Brian Caskey, vice
president of worldwide marketing at UTStarcom. 'The name RollingStream speaks
to what differentiates our technology -- the ability to efficiently parcel
content segments to servers at the edge of the network and then deliver the
segments sequentially to users on demand; so that their experience rivals
watching a DVD.'

Formerly know as mVision, RollingStream is a distributed end-to-end
solution that is designed to enable telecommunications operators and broadband
service providers to deliver broadcast-quality television and on-demand
entertainment programming over IP networks. The solution's scalability,
reliability, and bandwidth efficiency allow it to support new services,
including broadcast TV, Network Personal Video Recorder (n-PVR), Video on
Demand (VoD), and Near Video on Demand (NVoD), over existing network
infrastructures. These services may give service providers opportunities to
increase revenues, offer new services, and improve customer satisfaction and
retention.

RollingStream partitions each program into segments that are cached on
network edge servers based on viewing demand patterns and operator-specified
policies. This mechanism allows service providers to store the beginning
segments of feature-length programs directly at the network edge, close to the
subscriber, and dynamically deliver the remaining segments once viewing
starts. Compared to IPTV solutions that store all content either at the core,
which results in network congestion, or in multiple complete iterations at the
edge, which requires huge amounts of storage, UTStarcom's approach simplifies
and expedites content delivery, reduces storage requirements, and minimizes
network congestion.

Several major international telecommunications providers already deploy
UTStarcom's end-to-end IPTV solutions. China Telecom, the largest fixed-line
telecom operator in China, selected RollingStream to support its new IPTV
service launched in China at the end of 2005. The first official service
launch of up to 5,000 subscribers in Shanghai was the culmination of an
integrated commercial trial of IPTV by China Telecom in five provinces
throughout China. Softbank BB, the leading provider of broadband services in
Japan, chose UTStarcom's RollingStream end-to-end IPTV solution to support its
'BBTV' IPTV service, which launched on July 1, 2005. Softbank BB expects its
service can change the way consumers in Japan watch television by providing
many more choices and many more features at a more affordable price.

About UTStarcom's RollingStream

UTStarcom's RollingStream is an end-to-end solution designed for
telecommunications operators and broadband service providers to deliver
broadcast quality TV and on-demand entertainment programming over IP networks.
RollingStream offers service providers the scalability, reliability, and
bandwidth efficiency to support new services including broadcast TV, Network
PVR (n-PVR), Video on Demand (VoD), and Near Video on Demand (NVoD) over
existing network infrastructures. This results in opportunities for increased
revenues, new services, and improved customer satisfaction and retention.

For more information about UTStarcom's RollingStream solution, please
visit: http://www.utstar.com/Solutions/Broadband/IPTV .

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

This release includes forward-looking statements, including the foregoing
statements regarding the expectation that the new brand name of the Company's
IPTV solution will better articulate its functionality, the anticipated
ability of the Company's IPTV solution to enable service providers to offer a
variety of streaming applications over a single platform, the anticipated
ability of the solution to efficiently parcel segments to servers at the edge
of the network and deliver the segments sequentially to users on demand, the
anticipated enhancement in the user's TV watching experience due to the
solution, the anticipated ability of the solution to allow telecommunications
operators and broadband service providers to deliver high quality TV and
on-demand entertainment programming over IP networks, the anticipated
scalability, reliability and bandwidth efficiency of the solution and its
ability to support new services over existing network infrastructures, the
anticipated opportunities for increased revenues, new services and improved
customer satisfaction and retention the solution may present to service
providers, the expectation that the solution will allow service providers to
parcel out and store programs directly at the network edge for dynamic
delivery to the subscriber, the anticipated positive impact of the solution on
content delivery, storage requirements and network congestion, and Softbank
BB's expectation regarding the positive impact of the Company's IPTV solution
on broadband services in Japan. These statements are forward-looking in
nature and subject to risks and uncertainties that may cause actual results to
differ materially. These risk factors include rapidly changing technology,
the changing nature of global telecommunications markets, the termination of
significant contracts, the direction and results of future research and
development efforts, evolving product and applications standards, reduction or
delays in system deployments, product transitions, changes in demand for and
acceptance of the Company's products, general adverse economic conditions, and
trends and uncertainties such as changes in government regulation and
licensing requirements. 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.