IR/インベスターリレーションズ

'Continuity' Solution Extends More Services to More Potential Wireline and Wireless Users

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

The Continuity FMC solution is designed to increase network efficiency and
coverage. It can also enable end users to access a rich set of services and
features that, in the past, were available through either wireline or wireless
networks. In the future, the Continuity FMC solution allows users to
communicate with anyone from virtually anywhere while using a communication
device of their choice. This allows for a simple, cost-effective solution for
both wireline and wireless carriers and generally eliminates the need for a
major overhaul of existing infrastructure.

The Continuity solution includes an FMC Feature Server (FMC-FS) based on
the company's mSwitch(TM) IP softswitch platform and a dual-mode Wi-Fi/GSM
handset. With Continuity, fixed and mobile service providers can deliver a
unified service over both wireline and wireless networks. End users can
interconnect to the fixed-line or cellular network transparently and roam
across them seamlessly regardless of their location, communication device, or
network access method.

'UTStarcom's Continuity solution has the flexibility and power to enable
all types of carriers to enhance their services,' said
Brian Caskey, vice
president of worldwide marketing at UTStarcom. 'The mSwitch provides a solid
foundation for our FMC solution; it is a proven platform that currently
supports more than 48 million subscribers around the world. Plus, our
Continuity architecture is designed to enable all service providers to
continue to add mobility feature servers for CDMA, WiMAX, and other services
well into the future. We believe FMC is the first step for streaming media,
and ultimately, we expect the Continuity solution can even support IPTV over
the mobile device.'

Solution Supports Single or Dual Numbers

The Continuity solution is designed to support both single- and dual-
number configurations and provide a migration from one to the other. Carriers
will be able to choose which approach to use depending on the regulatory or
technology environment. A single-number configuration will give the user one
identity and one number, while allowing the service provider to save on
spectrum when the user is indoors and calls are carried over the broadband
network.

A carrier may need to support dual numbers for regulatory or tariff
reasons; for example, different tariffs may apply to wireline and wireless
segments of a call. Dual-number capability also lets carriers home handsets
to either the Wi-Fi or GSM networks. Also, users do not need to change their
behavior when the carrier migrates to a single-number service, an advantage
that reduces churn.

See companion release announced today titled, 'UTStarcom Announces Trial
of Its 'Continuity' Solution with Brasil Telecom.'

True Conversion, Not Substitution

Because UTStarcom's Continuity is designed to be a true FMC solution,
carriers can retain control of calls as subscribers roam between WiFi and
wireless domains. The Continuity FMC solution can provide subscribers with
the best of both worlds: the mobility of a wireless service plus the low cost
and high QoS of a wireline service. Today, about 50 percent of cellular
subscribers' calls originate in areas such as the home or office where there
is an existing Wi-Fi network.

Another advantage of FMC is that the connection will not be dropped when
users leave or enter buildings where wireless service is enabled and allowed;
instead, the connection will be seamlessly switched to the most appropriate
service. Because the wireline and wireless networks are peered, and
transparent to the user, and particularly because Continuity is an all-IP
solution, it is capable of supporting call control. Most other FMC solutions
are configured for Fixed-Mobile Substitution (FMS), which does not provide the
type of overall quality and transparency that end users expect.

Support for Multiple Dual-Mode Handsets

In addition to the compatibility of the FMC-FS with UTStarcom's dual-mode
Wi-Fi/GSM handset, the FMC-FS is also designed to interoperate with other
handsets via standards-based API protocols and interfaces. This reflects
UTStarcom's commitment to keeping the handset supply chain secure for wireless
service providers, while continuing to provide them with a wide range of new
handsets.

UTStarcom at 3GSM

UTStarcom's senior executives will be visiting the 3GSM World Congress and
Exhibition 2006 in Barcelona and will be available for limited press
interviews. To book an appointment, please contact
Howard Jones or
Helen Lyman
Smith in the U.K. at +44 (0)115 948 6901 (howard@gbcspr.com or
helen@gbcspr.com), or
Stephanie Gallagher in the United States at
+1 (510) 388-3287 (stephanie@engagepr.com).

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 ability of the Continuity FMC solution to
increase network efficiency and coverage, the anticipated potential ability of
the solution to allow users to communicate to whomever and wherever with
whatever communication device, the expectation that the solution will provide
a simple and cost-effective solution for both wireline and wireless carriers
and eliminate the need for a major overhaul of existing infrastructure, the
expected features to be included in the solution, the expectation that the
solution can enable fixed and mobile service providers to deliver a unified
service over both wireline and wireless networks, the anticipated ability of
the solution to provide users with interconnectivity and transparent roaming
over fixed and mobile networks, the expectation that the solution can enable
all types of carriers to enhance their services, the expectation that the
mSwitch will provide a solid foundation for the solution, the anticipated
ability of the solution to enable all service providers to continue to add new
mobility feature servers and other services well into the future, the
expectation that the solution will be able to support streaming media and
eventually IPTV over mobile devices, the anticipated ability of the solution
to support both single- and dual-number configurations and allow migration
from one to the other, the expectation that carriers will be able to choose
between single- and dual-number configurations, the anticipation regarding the
capabilities of single- and dual-number configurations and features during
migration from one to the other, the anticipation that the solution, as a
'true' FMC solution, will enable carriers to retain control of calls while
subscribers roam between WiFi and wireless domains, the anticipated ability of
the solution to provide the mobility of a wireless services at a low cost and
high QoS of a wireline service, the expectation that the solution will not
drop calls upon the user's entry into locations with enabled wireless service,
the expectation that the solution will generally support call control, the
expectation that the other FMC solutions will not provide the same quality and
transparency as the Company's solution, the anticipated compatibility of the
FMC-FS with the Company's dual-mode Wi-Fi/GSM handset, the anticipated
compatibility of the FMC-FS with other handsets via standards-based API
protocols and interfaces, and the expectation that the Company will continue
to make efforts to keep the handset supply chain secure and develop new
handsets for the benefit of 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, 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. 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.