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UTStarcom Explores Strategic Alternatives to Enhance Stockholder Value

ALAMEDA, Calif., Oct. 11 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that it is exploring a variety of strategic
alternatives to enhance stockholder value.

UTStarcom Explores Strategic Alternatives to Enhance Stockholder Value
UTStarcom Explores Strategic Alternatives to Enhance Stockholder Value

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To assist the company in its analysis and consideration of various
strategic alternatives, the board of directors has established a special
committee of the board and the special committee has retained Merrill Lynch &
Co. as its financial adviser.

'Our Board of Directors and management team believe that the inherent
value of the company and its opportunities are not reflected in our current
share price,' said
Hong Lu, Chairman and Chief Executive Officer of UTStarcom,
Inc. 'We believe the engagement of Merrill Lynch will help us to carefully
examine a range of short and long-term alternatives.'

In conjunction with this initiative, the Board has asked
Ying Wu, CEO of
UTStarcom China to oversee this effort, under the direction of the special
committee. Given this priority,
Mr. Wu will not assume the title of Global
CEO on January 1, 2007, as was previously announced.
Mr. Wu will continue his
current management responsibilities within the company while he is working
with the special committee. As such, the company's board and management team
will work to ensure an appropriate leadership succession plan.

There can be no assurance that any corporate action will result from the
company's exploration of strategic alternatives. The company undertakes no
obligation to make any further announcement regarding its exploration of
alternatives until such time, if ever, that it enters into a definitive
agreement providing for the completion of a transaction.

About UTStarcom

UTStarcom, Inc. 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
, Canada, China, Korea and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, visit the company's Web site at

Forward-Looking Statements

This release includes forward-looking statements by and about UTStarcom,
including without limitation the company's ability to achieve the objectives
set forth above, the expectations regarding the engagement of Merrill Lynch as
the advisor to the special committee, the anticipated role of
Mr. Wu in the
strategic process as well as his role in the future leadership of the company,
and the expectations regarding the company's leadership succession plan.
These statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. These risks
include, but are not limited to, the fact that the company may discontinue its
exploration of strategic alternatives at any time and may not conclude a
transaction. 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. The forward-looking statements contained in this release
represent the judgment of the company based upon information available to the
company as of the date of this release, which may change. The company
disclaims, however, any intent or obligation to update any forward-looking

SOURCE UTStarcom, Inc.