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UTStarcom and China Merchants Bank Sign Strategic Cooperation Agreement on Triple Network Convergence

Jun. 17, 2010 (PR Newswire) --

BEIJING, June 17 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI) today signed a comprehensive strategic cooperation agreement
with China Merchants Bank (CMB) in Harbin. In the next three years, CMB will
provide strong credit support to UTStarcom in major projects of forefront
product research, development, production and sales in the field of modern
communications. As the two represent domestic financial innovation and
communications technology innovation respectively, the cooperation can be
described as a perfect "innovative" combination.

Under the agreement, the two parties will engage in a range of financing
arrangements. CMB will increase credit and provide prioritized support to
UTStarcom's projects related to Triple Network Convergence. During the
agreement's three-year duration, CMB will provide UTStarcom with a credit line
up to RMB2 billion, of which at least RMB1 billion will be provided in the
first year to support the successful implementation of UTStarcom's major

At the signing ceremony, CMB Harbin Branch President Zhou Weilin said:
"CMB chose UTStarcom as our comprehensive strategic cooperation partner for
its excellent innovation capability. In addition, through innovation and
transformation, it has achieved a magnificent turn to become a top supplier in
China's Triple Network Convergence and leads the future trends of Triple
Network Convergence as well as NGB development and evolution. Beginning with
the cooperation, the two sides will deepen cooperation in forefront product
research, development, production and sales in the field of modern
communications. CMB will provide UTStarcom with comprehensive and integrated
financial services such as credit support, financial leasing, bond financing,
trust banking and financial consultation in key projects. The two sides will
work together to build a new platform and mechanism to develop their
cooperation, further integrate resources, enhance information exchange,
upgrade the gradation and level of strategic collaboration, expand the scope
of cooperation, strengthen cooperation content and enhance the value of
cooperation to make concerted efforts for the construction and development of
Triple Network Convergence, thus to create a new type of bank-enterprise
strategic partnership and jointly achieve a new leap forward in strategic

Commenting on the deal, UTStarcom COO Jack Lu said, "China Merchants Bank
is well known for business innovation in China's financial sector, with strong
professional competence and good sense of service. Also continuously pursuing
innovation and development, UTStarcom is delighted to be cooperating with
China Merchants Bank. In the rapid development of Triple Network Convergence,
Today's agreement will further boost our development of a business that is one
of the government's top priorities and it is expected to provide financial
security for UTStarcom's efforts in this area. At the beginning of this year,
UTStarcom announced the move of its operating headquarters to Beijing -- a
strong testament to our great choice."

UTStarcom is a leading supplier of technology and equipment for Triple
Network Convergence, which sees the blending and cross over of voice, internet
and broadcast services across these three networks. UTStarcom supplies the
broadcast & TV and telecommunications industries with customized business and
network solutions that have a wide range of applications.

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.

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About China Merchants Bank

China Merchants Bank is the sixth largest commercial bank by assets in
China and are currently among the top 100 banks in the world. In the 22 years
since their inception China Merchants Bank have grown from a small bank with
one office and capital totaling USD 14.5 million to a national bank with net
capital of USD 12.33 billion and more than 600 offices in 40 major cities
across China. As of September 30th, 2008, their total assets have reached USD
214 billion. China Merchants Bank are recognized by both domestic and
international media as well as the general public as China's Best Retail Bank
and Best Bank overall.

Forward-Looking Statements

This release includes forward-looking statements, including statements
regarding the Company's cooperation with China Merchants Bank and related
credit line and the Company's ability to rapidly push Triple Network
Convergence in China. 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 successfully
implement its major projects and to realize the anticipated benefits of its
cooperation with China Merchants Bank 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 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.

SOURCE UTStarcom, Inc.