Investor Relations

Operator to Expand Network to Deliver Nationwide Triple Play Services

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

Chunghwa Telecom intends to utilize UTStarcom's NetRing solution to
deliver high-density, high-speed broadband services, including voice, data,
and video, to subscribers throughout Taiwan in support of its MultiMedia on
Demand (MOD) service.

'This announcement represents an expansion on a contract the two companies
announced in May 2004, bringing the total dollar amount in contracts with
Chunghwa Telecom to approximately $40 million in just over one year,' said
Joe
Ye, general manager of UTStarcom Taiwan. 'Our NetRing product is an ideal
solution for operators like Chunghwa who want to offer multiple services off
the same platform, be it voice, data or video, without fear of service
efficiency or aggregation issues.'

Carrier-Class Edge Aggregation, Grooming, and Transport

UTStarcom's NetRing products provide aggregation, grooming, cross-connect,
and transport to deliver high-density, highly efficient STM-1 to STM-64, PDH
(E1, E3), Fast Ethernet, and Gigabit Ethernet services in SDH-based carrier
networks. All systems are designed to support full-redundancy, multiple
protection options, and in-service upgrades.

The NetRing product family is based on a distributed architecture that
combines Add-Drop Multiplexing (ADM), Digital Cross-Connect System (DCS), and
Ethernet switching functionality into an integrated, 'pay-as-you-grow' multi-
service system.

The NetRing optical solutions from UTStarcom are among the first designed
to support virtual concatenation, based on relevant ITU standards. With this
functionality, carriers can have provisioning granularity in any STS/VC
increment, dramatically improving Ethernet/IP transport efficiency across SDH
networks. UTStarcom's NetRing products are designed to support advanced EoS
protocols, such as Generic Framing Procedure (GFP), which provides standards-
based data encapsulation for efficient mapping of a wide variety of data
protocols, including Ethernet, ESCON, FICON, Fibre Channel, and digital video
into SDH. Built-in Ethernet management functionality enables carriers to apply
traffic shaping and limiting policies on a per-port or per-traffic-flow basis
for point-to-point Ethernet, Ethernet aggregation, Layer 2 switching, and
Ethernet VLAN applications. Statistical multiplexing capability allows native
Ethernet/data switching and oversubscription.

NetRing 600, 2500, and 10000 products comply with ETSI telecom standards
for SDH deployment.

About Chunghwa Telecom Co., Ltd.

Chunghwa Telecom is a leading telecom service provider in Taiwan. Chunghwa
Telecom provides fixed line services, mobile services and Internet and data
services to residential and business customers in Taiwan. Further information
about Chunghwa Telecom may be found on the Internet at www.cht.com.tw.

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

The foregoing statements regarding, without limitation, the anticipated
utilization of NetRing solutions by Chunghwa Telecom, the anticipated
suitability of NetRing products for use as a multiple service platform, the
anticipated support capabilities of NetRing products and the anticipated
features and functionality of the NetRing product line are forward-looking in
nature and are subject to risks and uncertainties that may cause actual
results to differ materially. These factors include rapidly changing
technology, the changing nature of the telecommunications market in general
and the US market in particular, evolving product and application standards,
changes or delays in product introductions and deployments, possible downturns
in the US market, the termination of significant contracts, partnerships or
alliances, and other uncertainties, such as changes in government regulation
and licensing requirements in the United States and worldwide. UTStarcom also
refers readers to the risk factors identified in its 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.