IR/インベスターリレーションズ

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO )
    See Tessera release also announced today titled, 'UTStarcom Selects
    Tessera's Miniaturization Technologies for Next-Generation Mobile Phone
    Module' for additional information.

Equivalent to the size of two SIM cards and less than 3mm thickness,
MobileCard technology is designed to enable all the essential functions of a
mobile phone. With this technology, a regular phone is reduced to a 'shell,'
which typically consists of mechanical housing, keypad, LCD, and speakers.
Consumers can simply insert the module into the 'shell' to have a complete
phone.

UTStarcom's MobileCard technology was developed to create significant cost
savings for mobile phone manufacturers. It is designed to eliminate the need
for complex RF and baseband design during the mobile terminal development,
which can result in simpler design and shorter development cycle. It can also
significantly shorten the handset certification process, allowing the product
to get to market much faster. As a standard part shared across many models,
it may also help to reduce the inventory risk as well.

In addition, MobileCard technology can enable the easy integration of
mobile communications with various portable devices, such as game consoles and
music players, so as to allow consumers to enjoy the convenience of mobile
communication everywhere they go. Operators can benefit from offering brand
new services based on these new types of terminals.

'Tessera, a leading chip packaging and miniaturization company, is very
excited to take part in the development of this highly innovative cellular
phone module with UTStarcom,' said
Stuart Wilson, senior director of
operations at Tessera. 'MobileCard technology enables a complete separation
of the cellular functions and the computer functions in a phone. We believe
it has the potential to significantly simplify the way that handsets are
designed.'

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
www.utstar.com.

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing
statements regarding the anticipated functionality enabled by MobileCard
technology allows, the anticipated ability of the technology to reduce a
regular phone into a 'shell' consisting typically of mechanical housing,
keypad, LCD and speakers, the anticipated increased convenience to consumers
resulting from such reduction of a regular phone into a 'shell,' the
expectation that the technology may lead to significant cost savings for
mobile phone manufacturers, the expectation that the technology may eliminate
the need for complex RF and baseband design during the mobile terminal
development, resulting in simpler design and shorter development cycle, the
anticipation that the technology can significantly shorten the handset
certification process and allow the product to get to the market faster, the
expectation that the technology may help reduce the inventory risk for mobile
phone manufacturers, the anticipated ability of the technology to enable easy
integration of mobile communications with various portable devices, the
anticipation that such integration can enable consumers to enjoy the
convenience of mobile communication anywhere, the anticipated ability of the
technology to enable operators to offer new services based on new types of
terminals supported by the technology, the expectation that the technology may
allow a complete separation of the cellular and computer functions in a phone,
and the expectation that such separation of functions may significantly simply
handset designs. These risk factors include rapidly changing technology, the
changing nature of global telecommunications markets, the termination of
significant contracts and/or strategic relationships, 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 the Company's products,
general adverse economic conditions, and trends and uncertainties such as
changes in government regulation and licensing requirements. 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.

SOURCE UTStarcom, Inc.