Investor Relations

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As previously communicated on February 1, 2007, the independent review by
the Nominating and Corporate Governance Committee of the Company's Board of
Directors (the 'Governance Committee') found that in certain instances all
actions that establish a measurement date under the requirements of Accounting
Principles Board No. 25, Accounting for Stock Issued to Employees, had not
occurred at the grant date, which had been used as the measurement date in
accounting for Company stock option grants. A later date, when all such
actions had taken place, should have been used as the measurement date for
these stock options. The Audit Committee of the Company's Board of Directors
(the 'Audit Committee') then determined, in consultation with and on the
recommendation of the Company's management, the effect of using incorrect
measurement dates would require the Company to record material additional
stock-based compensation charges in its previously issued financial
statements. The Company therefore previously announced, based on preliminary
information, its previously issued financial statements for the years 2000
through 2006, including interim periods within these fiscal years, should no
longer be relied upon, and its estimate that the restatement may involve
additional non-cash compensation and related charges of approximately $50
million. The Company is working to complete its restatement and become current
in its public filings as soon as possible, and currently intends to do so as
soon as practicable. The Company now expects that it will not be able to file
its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 by the
May 10, 2007 due date or any applicable extension thereto.

This information is preliminary and is subject to changes that might
result from completion of the Governance Committee's investigation,
management's and the Audit Committee's review of the findings of the
Governance Committee, and an audit by the Company's independent registered
public accounting firm, but it provides management's best estimates based on
available information.

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, Canada,
China, Korea and India. UTStarcom is a FORTUNE 1000 Company.

For more information about UTStarcom, please visit the Company's Web site
at http://www.utstar.com.

Forward-Looking Statements

Information in this release regarding the status and determinations
resulting from the Governance Committee's independent review, the Audit
Committee's assessment of the results of that review, management's estimate of
the total amount of additional non-cash stock-based compensation charges that
may be recognized, the Company's plans to request that the NASDAQ Listing and
Hearings Review Council review the Panel's decision and grant the Company
additional time to comply with its filing obligations, and the present
expectations concerning the timing of filings with the SEC, as well as other
expectations and beliefs, are forward-looking statements that involve risks
and uncertainties. All forward-looking statements included in this release are
based upon information available to the Company as of the date of this
release, which may change, and we assume no obligation to update any such
forward-looking statement. These statements are not guarantees of future
performance and actual results could differ materially from our current
expectations. Factors that could cause or contribute to such differences
include the final conclusions of the Governance Committee (and the timing of
such conclusions) concerning matters relating to stock option grants, the
review of such conclusions by the Audit Committee, company management, and the
Company's independent registered public accounting firm, and other risks
detailed from time to time in the Company's SEC reports and filings, including
our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.

The investigation regarding timing of past stock option grants and other
potentially related issues is ongoing, and the determinations of the
Governance Committee, the Audit Committee and the Company's management
discussed in this release are preliminary. In addition, the investigation and
possible conclusions have had and may in the future have an impact on the
amount and timing of stock-based compensation expense and other related
additional charges to be recorded for previously awarded equity grants, our
ability to file required reports with the SEC on a timely basis, our ability
to meet the requirements of the NASDAQ Global Select Market for continued
listing of our shares, potential claims and proceedings relating to such
matters, including shareholder or employee litigation and action by the SEC
and/or other governmental agencies, and negative tax or other implications for
the Company resulting from any accounting adjustments or other factors.

SOURCE UTStarcom, Inc.