Investor Relations

UTStarcom to Maintain Full Ownership of Network Design and Deployment in Region

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During this second phase, UTStarcom will deploy its industry-leading
iAN-8000 multiservice access node (MSAN) solution in 962 cities throughout
India to enable the addition of 1.1 million new broadband subscriber lines.
The network expansion will help BSNL accelerate its existing broadband
connections on subscriber lines by more than 30 times the current speed.

'We worked closely with BSNL to successfully complete phase one of this
multiplay broadband network and we are pleased that they have chosen to extend
their relationship with us for phase two of the deployment,' said
Vijay Yadav,
vice president and managing director of UTStarcom's South Asia operations.
'This contract extension re-affirms BSNL's continued trust in UTStarcom's
technology and excellent service and support. We are confident that the
continued expansion of this network with the phase two deployment will help
BSNL retain and improve on their customer base and revenues.'

UTStarcom will continue to serve as the turnkey provider for phase two of
the deployment, maintaining full responsibility for the network design and
planning, deployment, service roll out, and maintenance of the network. With
UTStarcom's ADSL 2+ based broadband solutions, BSNL will be able to extend its
offerings of broadband-based, triple-play services such as video-on-demand
(VOD), video multicast, VPN services and high-speed Internet services to
another 1.1 million broadband subscribers across the country while
simultaneously gaining the benefits of network flexibility, scalability for
innovation and the opportunity for rapid return on investment. This deployment
also is expected to help India move closer to its goal of 20 million broadband
subscribers by 2010.

The existing broadband connection on current networks uses the 'Plain Old
Telephone System' (POTS) that delivers only 64 kilobits per second (kbps) of
broadband speed. The new ADSL 2+ technology provided by UTStarcom will provide
speeds beyond 8 mega bits per second (mbps), which is more than 30 times
faster than the existing speed. This will allow BSNL's customers the
opportunity to enjoy value added services such as IPTV, VOD, voice over
Internet Protocol (VoIP), VPN service, multicasting over VPN and others over
the existing broadband network, in addition to basic Internet surfing
capabilities.

UTStarcom also has deployed its NetRing(TM) 10000 optical transport
solution in support of this multiplay service for the aggregation of DSL
traffic in BSNL's network. UTStarcom's NetRing product suite provides service
providers with a high level of network resilience and carrier-grade quality of
service for subscribers to help ensure trouble-free delivery of real-time
mission critical data and video applications.

About Bharat Sanchar Nigam Ltd. (BSNL)

BSNL, a Government of India owned corporation, is the incumbent and
largest telecommunications services provider in India with a pan-India
footprint but for Delhi and Mumbai. It has a network of over 74 million
subscribers covering 5000 towns with over 35 million fixed line telephone
connections. The corporation is an integrated telecommunications service
provider with presence in the fixed line, cellular mobile, long distance and
data segments with over 35 million fixed line, 38 million cellular mobile and
3.9 million Internet subscribers including 2.7 million broadband customers. To
know more about BSNL, please log on to http://www.bsnl.co.in.

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
http://www.utstar.com.

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
deployment of its broadband products in India, including statements regarding
the anticipated application and growth of broadband Internet users in India.
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; possible delays in system deployment;
termination of new contracts, partnerships or alliances; changes in
anticipated number of subscribers and traffic; 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.