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New Offering to be Unveiled at the IPTV World Forum Eastern Europe

Through Kapsch CarrierCom, UTStarcom - (Nasdaq: UTSI), a global leader in
IP-based, end-to-end networking solutions and services - will supply its
portfolio of broadband solutions, which will enable operators and internet
service providers to bring IPTV, and other next-generation services to
consumers across the region.

'Kapsch CarrierCom is renowned throughout Eastern and Central Europe as a
provider of cutting-edge, world-class communications technology and
excellent, local customer service,' said Youssef Kassissia, VP of EMEA region
for UTStarcom. 'We are anticipating massive growth in the demand for
broadband in this region: unbundling is taking off, interconnection charges
are going down, and we are confident that, together with Kapsch CarrierCom,
we can meet the needs of this emerging market.'

Kapsch CarrierCom has more than 20 years' experience in providing
communication networks, from fixed, mobile and data networks, to broadband
communication, internet solutions, next generation networks and UMTS. Kapsch
CarrierCom now has local business units in Hungary, the Czech Republic,
Slovakia, Croatia and Bulgaria, and has a significant presence in other
countries through sales and service partners. Headquartered in Austria,
Kapsch CarrierCom supports the success of the Telekom Austria Group, Czech
Online, T-Com Hungary and other international operators.

'As a leading multi-vendor system innovator for communication technology
solutions we have been intensively engaged in IPTV since the emergence of the
technology,' said Mag.
Kurt Plattner, board member of Kapsch CarrierCom. 'The
cooperation with UTStarcom ideally complements our know-how. This enables us
to offer even more comprehensive solutions and services in the area of IPTV,
now and in the future.'

The companies will debut their offering at the IPTV World Forum Eastern
Europe, to be held at the Budapest Marriott Hotel, Hungary, between 22-23rd
June 2006.

About UTStarcom's Broadband Solutions

UTStarcom's broadband wireline solutions enable carriers to deploy IP-
based, high-speed Internet, voice, data, and multimedia services over
wireline networks. Designed for highly efficient, converged service delivery
across an evolving networking landscape, these solutions continue to expand
the capacity and performance of narrowband, broadband, and transport
solutions. Our wireline broadband product offering includes a suite of
optical transport platforms, extensive edge network access solutions, and a
distributed IPTV and multimedia delivery system.

Earlier this month, UTStarcom announced that it had supplied over 1
million ports of IPDSLAM equipment in Europe alone.

In April 2006, UTStarcom announced it had signed a contract with China
Netcom to provide an end-to-end IPTV solution in Harbin, northeast China. The
deal is UTStarcom's fourth IPTV contract in China and is the single largest
IPTV capacity deployment in China to date.

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.

About Kapsch CarrierCom AG

Kapsch CarrierCom AG belongs to the Kapsch Group and specialises in
communication solutions for operators of fixed and mobile networks for voice
and data transmission. Kapsch CarrierCom covers all fields: from analysis,
consulting, design, development, integration, installation and training up to
maintenance and operation of complete networks.

For more information about the Kapsch Group and Kapsch CarrierCom AG,
visit the company's web site at www.kapsch.com, www.kapschcarrier.com.

Forward Looking Statements

This release includes forward-looking statements, including the foregoing
statements regarding the anticipated size and location of deployments of the
Company's IPTV solutions in China, the anticipated significance of the
Company's IPTV technology and service in the telecommunications market, the
anticipated emergence of IPTV-based business model and value chain, the
anticipated growth of market and consumer demand for IPTV in various regions
of China, the expectation that the RollingStream solution can help service
providers deliver broadcast quality TV and on-demand entertainment
programming over IP networks, the expectation that RollingStream will enable
service providers to support new services over existing network
infrastructures, and the expectation that RollingStream will present service
providers with opportunities for increased revenues, new services, and
improved customer satisfaction and retention. 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 China 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 the Company's products, general adverse economic conditions, and trends
and uncertainties such as changes in government regulation and licensing
requirements, both in China and globally. 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.