Investor Relations

(Logo: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO )

'We believe that IPTV will be a driving force in the development of
broadband services throughout China as consumers discover the freedom of
timeless television and the variety of choices and value-added services that
our RollingStream system can offer,' said
Bill Huang, chief technology officer
and senior vice president of engineering for UTStarcom. 'Both Fuzhou and
Quanzhou represent exciting and fertile opportunities for the growth of IPTV
as less than 5 percent of the population in each city currently has access to
broadband services.'

In Fuzhou, the capital city of Fujian Province with nearly six million
residents, the initial deployment has a capacity of 12,000 concurrent media
streams, covering the major metropolitan areas of the city. Initially it plans
to offer users 70 channels of live broadcast television with 'time-shifting'
capabilities and approximately 3,000 hours of video-on-demand. The operator is
targeting 50,000 users by the end of 2006.

In Quanzhou, a coastal city with approximately 6.5 million residents, the
initial deployment is planned to support 37,000 concurrent media streams and
covers the city's main districts and initially offers users 70 channels of
live broadcast television with 'time-shifting' capabilities and approximately
5,000 hours of video-on-demand. The operator is targeting 80,000 users by the
end of 2006.

About UTStarcom's RollingStream

UTStarcom's RollingStream is an end-to-end solution designed for
telecommunications operators and broadband service providers to deliver
broadcast quality TV and on-demand entertainment programming over IP networks.
RollingStream offers service providers the scalability, reliability, and
bandwidth efficiency to support new services including broadcast TV, Network
PVR (n-PVR), Video on Demand (VoD), and Near Video on Demand (NVoD) over
existing network infrastructures. This results in opportunities for increased
revenues, new services, and improved customer satisfaction and retention.

For more information about UTStarcom's RollingStream solution, please
visit: http://www.utstar.com/Solutions/Broadband/IPTV.

UTStarcom will conduct live demonstrations of its RollingStream end-to-end
IPTV solution over its Gigabit Ethernet Passive Optical Network (GEPON)
solution at 3GSM World Congress 2006 in Barcelona, Spain at Booth G62, Hall 2
Level 0.

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.

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing
statements regarding the anticipated impact of IPTV on the development of
broadband services in China, the expectation that the RollingStream system can
offer a variety of choices and value-added services to consumers, the
anticipated opportunities for the growth of IPTV in Fuzhou and Quanzhou, the
anticipated number of users to be supported and the level of services to be
provided by the initial deployment of IPTV in Fuzhou and Quanzhou, the
anticipated increase in the number of IPTV users in Fuzhou and Quanzhou by the
end of 2006, the expectation that IPTV will offer service providers
scalability, reliability, and bandwidth efficiency to support various new
services over existing network infrastructures, and the anticipated
opportunities for increased revenues, new services and improved customer
satisfaction and retention for service providers. 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.