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UTStarcom Signs $42 Million in Contracts With China Telecom for Expansion of IP-Based PAS Networks

ALAMEDA, Calif., Oct. 18 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that it signed contracts valued at approximately
$42 million with China Telecom Corporation to expand IP-based Personal Access
System (iPAS(TM)) networks in regions throughout China. The network expansions
will take place in the Jiangsu, Guangdong, Sichuan, Zhejiang and Yunan
provinces, as well as the Chongqing municipality.

UTStarcom Signs $42 Million in Contracts With China Telecom for Expansion of IP-Based PAS Networks
UTStarcom Signs $42 Million in Contracts With China Telecom for Expansion of IP-Based PAS Networks

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'More than 84 million people currently subscribe for PAS service in China
and subscriber growth has continued to be strong, representing better than
40 percent annual growth from 2004,' said
Simon Le, senior vice president of
sales at UTStarcom China. 'Although total network capacity has topped
100 million lines, overall network utilization throughout China has remained
high at approximately 78 percent.'

PAS Wireless Access Solutions

Field proven in one of the fastest growing telecom markets in the world,
UTStarcom's PAS solutions are designed to offer subscribers citywide wireless
voice and data services at affordable prices. Using UTStarcom's IP
next-generation softswitching technology, the PAS solution is designed to
enable operators to extend their fixed-line networks with feature-rich
wireless services, rapidly expand networks to meet increased subscriber
demand, and seamlessly integrate broadband and future 3G technologies into
their service portfolios.

UTStarcom's PAS and iPAS(TM) (IP-Based Personal Access System) services
offer service providers and subscribers unique and attractive advantages over
competing wireless services. For operators, PAS is designed to provide a
two-to-three year return on investment (ROI), increase average revenue per
user (ARPU), and provide the ability to support new applications and
diversified value-added services. For subscribers, PAS is designed to provide
affordable mobile telecommunications service with an array of features. In
addition to high-quality voice service, UTStarcom PAS users can expect to
enjoy short messaging service (SMS), C-MODE based web browsing, 64Kbps
wireless Internet access, and location-based services.

UTStarcom's proven expertise in IP technology and its mSwitch(TM)
converged next-generation softswitching platform are expected to give it an
advantage over other global telecom vendors. UTStarcom's converged switching
platform is designed to allow operators to deploy iPAS, 3G, and
wireline/broadband services side-by-side utilizing a common switching
infrastructure to address a wide range of user needs and interests. With more
than 55 million lines of next-generation softswitching deployed throughout
China, Taiwan, Vietnam, Thailand, Africa, and Latin America, UTStarcom is a
worldwide leader in IP core networking.

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

Forward-Looking Statements

The foregoing statements regarding, without limitation, the anticipated
expansion of iPAS networks in regions throughout China and the anticipated
locations of such expansion, the anticipated functionality, features and price
of UTStarcom's PAS solution, the anticipated competitive advantages of
UTStarcom and its PAS and iPAS solutions, and the anticipated benefits of
UTStarcom's converged switching platform, are forward-looking in nature and
are subject to risks and uncertainties that may cause actual results to differ
materially. These factors include rapidly changing technology, the changing
nature of the telecommunications market in general and the US market in
particular, evolving product and application standards, changes or delays in
product introductions and deployments, possible downturns in the US market,
the termination of significant contracts, partnerships or alliances, and other
uncertainties, such as changes in government regulation and licensing
requirements in the United States and worldwide. UTStarcom also refers readers
to the risk factors identified in its respective 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.