Investor Relations

UTStarcom completes first, large-scale deployment of system designed to ensure safety of citizens in China's Liaoning Province

(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)

The Safe-City video surveillance project in Benxi -- which is also the
first large-scale application of UTStarcom's RollingStream IP video
surveillance solution -- will be one of the most advanced systems in the
Liaoning Province in terms of technology and function. It will allow the
Benxi Public Security Bureau to more scientifically plan the deployment of
police through dynamic arrangement, comprehensive control, and precise strike
capabilities and enable a more effective maintenance of the order and
stability of the city -- thus greatly improving the safety index of urban
residents.

'Together with UTStarcom, we are pioneering a new security infrastructure
that will establish the standard for safe city designation in the region, and
more importantly, deliver lasting benefits to our urban society,' said Guangyu
Zhang, manager, marketing department, China Netcom's Benxi Branch.
'UTStarcom's IPVS technology provides us with a very interactive, manageable,
and re-programmable video surveillance tool in Benxi that has proven flexible
in supporting our multiple network structure without sacrificing performance
stability or the high performance and price ratio that we would expect.'

UTStarcom, which is responsible for the overall design, implementation and
construction of the entire surveillance system in this project, worked very
closely with China Netcom's Benxi subsidiary to identify surveillance points
and system functionality that will best support the district's security,
strike, prevention, control, management and service needs.

UTStarcom will establish 700 surveillance points -- or cameras --
throughout Benxi in the first phase of the project and all security
surveillance facilities in the urban district of Benxi will adopt the
advanced, IP-based surveillance system for monitoring and safety deployment
purposes.

'As a dedicated supplier of this Safe-City IP video surveillance system,
it is critical that we deliver the level of intelligent data and security
features needed by China Netcom and the Benxi Public Safety Bureau for the
success of this deployment and, ultimately, the overall safety of Benxi's
residents,' said
Robert Wu, senior vice president of China sales and marketing
and GSS, UTStarcom, Inc. 'This deployment will not only promote the
development of IP and multimedia switching technologies in the surveillance
sector, but also provide China Netcom and other telecom operators throughout
the world with a new business model and a new profit source.'

UTStarcom's RollingStream IPVS solution, based on the company's open
architecture RollingStream IPTV technology, boasts the largest processing
capacity and the richest surveillance functions available in the industry
today. A distributed solution delivered over an IP broadband network, it
supports remote control of video images, mass storage, remote transmission,
tiered management and a wide range of value-added services. It also utilizes
the RollingStream server and blade storage technology to ensure the quality
and operability of the video surveillance, and provides a uniquely stable
system performance, enriched service experience, and carrier-grade operation
and maintenance.

About China Netcom

China Netcom is a leading broadband communications and fixed-line
telecommunications operator in China. Its service regions in China consist of
Beijing Municipality, Tianjin Municipality, Hebei Province, Henan Province,
Shandong Province, Liaoning Province, Heilongjiang Province, Jilin Province,
Neimenggu Autonomous Region and Shanxi Province. In these service regions, the
Company is a dominant provider of fixed-line telephone services, broadband and
other Internet-related services, as well as business and data communications
services. For more information, please visit
http://www.chinanetcom.com.cn/en/index.asp.

About UTStarcom, Inc.

UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company develops, manufactures and
markets its broadband, wireless, and terminal solutions to network operators
in both emerging and established telecommunications markets worldwide.
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. UTStarcom was founded in 1991 and
is headquartered in Alameda, California, the company has research and
development centers in the USA, Canada, China, Korea and India. For more
information about UTStarcom, visit the company's Web sites at
http://www.utstar.com.cn or http://www.utstar.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995

The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of Section 21E of
the Securities and Exchange Act of 1934, as amended, including statements
regarding UTStarcom's expectations, beliefs, intentions or strategies
regarding the future and including, without limitation, the anticipated
application of the IP Video Surveillance Technology Solution in Benxi, China;
the intended use and size of the project by China Netcom; the rapidly changing
nature of IPTV technology and the telecommunications market in China; possible
delays in system deployments; the termination of new contracts, partnerships
or alliances; and changes in government regulation and licensing requirements
in China.

All forward-looking statements included in this document are based upon
information available to UTStarcom as of the date hereof, and UTStarcom
assumes no obligation to update any such forward-looking statements.
Forward-looking statements involve risks and uncertainties, which could cause
actual results to differ materially from those projected. These risks and
other risks relating to UTStarcom's business are set forth in the documents
filed by UTStarcom with the Securities and Exchange Commission, specifically
its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, and amendments thereto.

SOURCE UTStarcom, Inc.