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UTStarcom Signs Agreement to Supply CDMA Handsets to S-Fone in Vietnam

ALAMEDA, Calif., Dec. 7 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced a contract to supply its C1161 CDMA 1x handsets
to S-Fone, a nationwide CDMA service provider based in Ho Chi Minh City,

UTStarcom Signs Agreement to Supply CDMA Handsets to S-Fone in Vietnam
UTStarcom Signs Agreement to Supply CDMA Handsets to S-Fone in Vietnam

'UTStarcom has a long, successful relationship in providing both our
Personal Access System (PAS) handsets and dual-mode PAS/GSM handsets to the
Vietnamese market,' said Vu Hoai Bac, marketing manager at UTStarcom Vietnam.
'Today's announcement marks the first time UTStarcom has provided CDMA
handsets to Vietnam, a market we believe holds great potential for UTStarcom
as a vendor of both CDMA handsets as well as CDMA infrastructure.'

S-Fone is the sixth operator in 2005 to offer UTStarcom-designed and
-manufactured handsets, joining Sprint PCS in the United States, China Unicom
in China, City Cell (Pacific Bangladesh Telecom Limited) in Bangladesh,
Smartcom in Chile and Iusacell in Mexico.

Under the terms of the contract, UTStarcom will supply its C1161 model to
S-Fone for use by the operator's subscribers in Vietnam. Designed and
manufactured by UTStarcom, the C1161 is an affordable 800MHz CDMA1x handset
featuring an elegant clamshell design and a 1.5' CSTN 65K color screen
display. The handset offers 12-note polyphonic ring tones; SMS predictive text
capability; removable user identity module (R-UIM), which is designed to
enable the smooth transition of phone directories and subscriber information
without the need for additional programming when upgrading handsets; a
200-entry phonebook; and a longer-life battery with three hours of talk time
and more than 100 hours of standby time.

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

About S-Fone

S-Telecom CDMA Mobile Phone Center (with the brandname S-Fone) was built
under the cooperation of SPT (Viet Nam) and SLD Telecom (established in
Singapore, includes 3 stakeholders namely SK Telecom, LG Electronics and Dong
Ah Elecomm) in the form of Business Cooperation Contract -- BBC with the total
investment of $230 million USD, including investment and working capital.
S-Telecom provides mobile phone service, wireless local loop service and
value-added services using CDMA 2000-1x technology, across Viet Nam.

For more information about S-Fone, visit the company's Web site at

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing
statements regarding the market potential for UTStarcom's products in Vietnam,
the anticipated number of C1161 handsets to be supplied under the contract
between UTStarcom and S-Fone, the anticipated affordability of the C1161
handset, the anticipated ease of upgrade and other features to be provided by
the C1161 handset's removable user identity module, and the expectation
regarding the C1161 handset's battery life. 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,
both in Vietnam and globally, 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 UTStarcom's
products, general adverse economic conditions, and trends and uncertainties
such as changes in government regulation and licensing requirements, both in
Vietnam and globally. UTStarcom 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.