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UTStarcom Secures Deal With Best Tone Hunan Branch for New Video Advertising Network

ALAMEDA, Calif., Oct. 14 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI) today announced it has signed an agreement with Best Tone
Information Service Corporation Ltd., a wholly-owned subsidiary of China
Telecom Corporation Ltd. (NYSE: CHA; HKG: 0728), with the intent to deploy a
video information distribution network in the Hunan province of China. This is
the second large-scale interactive advertising system that UTStarcom's
end-to-end RollingStream(R) Internet Protocol TV (IPTV) platform will power in
China, both of which are expected to change the way subscribers view
advertisements. UTStarcom previously announced the launch of the first
interactive advertising network with Guangxi Telecom Company Limited, also a
wholly-owned subsidiary of China Telecom Corporation Limited, in July 2008.

UTStarcom Secures Deal With Best Tone Hunan Branch for New Video Advertising Network
UTStarcom Secures Deal With Best Tone Hunan Branch for New Video Advertising Network

RollingStream Platform Serves as First Video Information Distribution Network in China's Hunan Province


Best Tone is working with UTStarcom to build and operate a
Chinese-specific, building-based video information network and distribution
system, with 3,500 iPAD1000 terminals scheduled to go live in office
buildings, government facilities, supermarkets, hotels, hospitals and schools
in the Hunan Province this year. The iPAD1000 technology integrates
UTStarcom's RollingStream IPTV set-top boxes, an ADSL modem, Wi-Fi adapter,
IPTV network connection and video monitor into a single terminal station. The
network, intended to generate new revenue opportunities by streaming
commercial advertisements throughout Hunan Province, is expected to support a
total of 10,000 terminals in the region upon completion of the project.

'UTStarcom's RollingStream IPTV solution provides the foundation that Best
Tone needs to most effectively leverage our expansive broadband network to
create valuable new marketing channels for our customers' products and
services,' said
Zhenbo Zhang, vice general manager of Hunan Branch, China
Telecom Corporation Ltd. 'As a long-time partner of China Telecom's Hunan
Branch, UTStarcom has consistently proven that it understands and is in line
with our long-term goals to transform into a true information and
communications service provider.'

Best Tone's one-stop information network provides users with access to
services such as Best Tone's free 114 Internet search portal for the Web,
blogs, forums and news; 114 Directory Assistance; yellow pages; integrated
media services and interactive advertising . It strives to provide business
information to government and corporate users and information about daily life
to individual consumers.

'UTStarcom's long-term IPTV presence in China provides unique expertise in
developing and delivering interactive services,' said
Robert Wu, CEO of
UTStarcom China. 'Increasingly, companies are seeking out new ways to reach
consumers beyond traditional advertising methods. UTStarcom's RollingStream
solution is assisting service providers in addressing this need and further
monetizing their existing networks.'

UTStarcom's RollingStream(R) end-to-end IPTV system currently supports
more than 956,000 live IPTV subscribers globally and maintains a current total
system capacity of more than 2.5 million subscribers as a result of recent
successful deployments in China with
China Netcom and China Telecom, in India
with Bharti Airtel, BSNL/Aksh, MTNL/Aksh and United Telecoms Limited, in Sri
with SLT, in Japan with Softbank, in Latin America with Brasil Telecom
and in Taiwan with Markwell.

About Best Tone Information Service Corporation Ltd.

Best Tone Information Service Corporation Limited of China Telecom Group
is a wholly owned subsidiary of China Telecom Corporation Limited. Registered
in Shanghai in August 2007, the company offers one-stop service network
covering the whole country, providing users with information service including
Best Tone, yellow pages, audio guide and comprehensive media. It strives to
provide business information to the government and corporate users and daily
life information to the personal users.

Focusing on the strategy of China Telecom Group -- 'transferring from a
traditional telecom carrier to an information and communications service
provider', the company will hold on the core value of 'Comprehensive
Innovation, Pragmatic Execution, People-oriented Approach, Value-added
Cooperation', be customer-oriented and develop diversified information
services, striving to be a provider of authoritative information release
solution, advanced business information search engine, and professional
consumer information service.

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, Canada, China, Korea and India.
For more information about UTStarcom, visit the company's Web site at

Forward Looking Statements

This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, regarding UTStarcom's future
strategy, including statements regarding the anticipated deployment of an
interactive advertising system in China using the Company's RollingStream IPTV
platform. These statements are forward-looking in nature and subject to risks
and uncertainties that may cause actual results to differ materially. Factors
that could cause actual results to differ materially from those contained in
our forward-looking statements include: increased competition; economic issues
in the identified geographic markets; risks associated with delays in product
development, system deployment or customer acceptance; termination of
contracts, partnerships or alliances; anticipated number of subscribers,
traffic and content; and changes in government regulation and licensing
requirements. Please also refer to UTStarcom's periodic reports that are
filed from time to time with the Securities and Exchange commission, including
our latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. UTStarcom assumes no obligation to, and does not
currently intend to, update these forward-looking statements.

SOURCE UTStarcom, Inc.