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First quarter revenues are now expected to be in the range of $580 million
to $590 million, compared with the initial guidance of $500 million to $520
million. This is attributable to better than expected performance from the
company's Personal Communications Division as well as from our core business
units. Revenue in the first quarter of 2007 was $475.9 million. Gross
margins are now expected to be in the range of 15% to 16% compared to the
initial guidance of approximately 13%. This expected improvement reflects
positive performance across the majority of our business units. Gross margins
in the first quarter of 2007 were 15.8%. The first quarter operating expenses
are now expected to be in the range of $120 million to $125 million, compared
to the initial guidance of $115 million to $120 million. The higher than
expected operating expenses are in part due to unanticipated professional
services expenses. Operating expenses in the first quarter of 2007 were
$127.5 million.

As of March 31, 2008 the cash, cash equivalents and short-term investments
was approximately $305 million, compared to $503 million as of
December 31, 2007. The debt balance as of March 31, 2008 was approximately
$36 million, compared to $323 million as of December 31, 2007. During the
quarter, the company repaid $289.5 million of convertible notes, including
accrued interest. The company also benefited from strong cash flow from
operations generated primarily by management of working capital.

    Certain significant items in the first quarter include:
    -- $49 million in gains on sale of investments including the Gemdale
       Corporation investment
    -- A net $9 million tax benefit primarily due to a change in withholding
       tax laws in China

'Since announcing our new corporate strategy in September 2007, we have
made a good deal of progress,' said
Peter Blackmore, UTStarcom's president and
chief operating officer. 'These preliminary results reflect that progress,
plus we benefited from some positive one time factors. There is still a lot of
work to do in our turnaround, but we are on track with where we expected to
be.'

Expectation to file a Form 12b-25

The company also announced its expectation to file a Form 12b-25 with the
SEC. This filing will extend the due date for the Quarterly Report on Form
10-Q for the quarter ended March 31, 2008 (the 'Form 10-Q') until
May 19, 2008, and the company expects to file the Form 10-Q by such date.
During the first quarter of 2008, the company implemented an enhanced version
of its enterprise resource planning system and is continuing to test the
system. Because the company has not yet completed its testing of the system,
certain additional processes have been required in connection with the
preparation of the company's consolidated financial statements. These
additional processes have increased the time otherwise needed by the company
to prepare its consolidated financial statements for the quarter ended
March 31, 2008 to be included in the Form 10-Q.

Forward looking statements

This release contains forward-looking statements, but actual results could
differ materially from our current expectations. Such statements include our
expectations regarding our revenue, gross margins and operating expenses for
the first quarter of 2008, the anticipated timing for the release of final
financial results for the first quarter of 2008 and for the filing of the Form
10-Q. The risk factors which may affect these expectations include possible
accounting entries and adjustments that may be made to our financial
statements as part of the close of the books for the first quarter of 2008, as
well as the timing for us to complete additional processes related to these
financial statements. We also refer readers to the risk factors identified in
our latest annual report on Form 10-K, in our quarterly reports on Form 10-Q
and current reports on Form 8-K, which are filed with the Securities and
Exchange Commission.

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, please visit the UTStarcom Web site
at http://www.utstar.com.

SOURCE UTStarcom, Inc.