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UTStarcom's Continuity solution is designed to provide fully integrated
roaming for users between fixed-line Voice-over-IP (VoIP) networks and mobile
networks developed on the company's IP-based mSwitch(TM) softswitch platform.

See companion release announced today titled, 'UTStarcom to Launch
End-to-End Fixed-Mobile Convergence Solution at 3GSM World Congress 2006.'

'As one of the leading operators in all of Latin America and a key member
of the Fixed Mobile Convergence Association, Brasil Telecom is always at the
forefront in providing next-generation services to its subscribers,' said

UTStarcom's Continuity platform is a flexible, end-to-end solution that
can be quickly deployed with Brasil Telecom's existing infrastructure. It is
designed to enable the operator to defend against subscriber churn and compete
with other mobile service providers for GSM subscribers, which totaled
86.2 million users in Brazil at the end of 2005.

The trial, which began in February 2006, will be conducted in Brasilia,
the country's capital city and headquarters for Brasil Telecom.

'We believe this trial is the first step toward the commercial deployment
of UTStarcom's Continuity solution with a top-tier service provider in Latin
America with more than 12 million subscribers,' said
Rene Mendez, Vice
President of Sales in the CALA region at UTStarcom, Inc. 'Our Continuity
solution is designed to provide a deployment approach that dovetails with
Brasil Telecom's existing infrastructure scenario and long-term network
expansion plans and is supported by our strong, local, in-country service and
support organization to respond to any customer query.'

About Brasil Telecom

Brasil Telecom is the first super carrier in Brazil to supply, in an
integrated way, all market's demands with convergent solutions in fixed and
mobile telephone services, voice and data transmission, national and
international long distance services, data center services, as well as
Internet access (broadband and dial-up).

The company provides local wire line and mobile telephone services in the
Federal District and in the Brazilian states of Acre, Rondonia, Tocantins,
Mato Grosso, Mato Grosso do Sul, Goias, Parana, Santa Catarina and Rio Grande
do Sul, as well as national and international long distance services all over
the country.

In addition, Brasil Telecom offers broadband Internet access (Turbo), with
ADSL technology; broadband content through its providers BrTurbo and BrTurbo
Empresas; and wireless broadband Internet access (BrTurbo ASAS), with WiFi
technology. Internet providers iG (dial-up and broadband) and iBest (dial-up)
are also part of Brasil Telecom Group, which makes the company the largest
Internet provider in Latin America.

Brasil Telecom has over 10.8 million fixed lines installed and the second
largest broadband base in Latin America. In last than 15 months of full
commercial operation, the company reached over 2.2 million customers in mobile
telephone services.

In return of all customers' trust in Brasil Telecom's products and
services, the company supports and sponsors cultural, social and sports
projects, always aiming to establish long-term partnerships that contribute to
the country's development.

Transparency and unrestrictive access to information in the company's
relations with investors and shareholders reinforce the soundness and
confidence of investing in Brasil Telecom. The company was the first Brazilian
fixed telephone services operator resulting from the privatization process to
list ADRs (American Depositary Receipts) in the New York Stock Exchange
(NYSE), in 2001, and is the first in its industry to join the Level 1
Corporate Governance Classification at Bolsa de Valores de Sao Paulo
(Bovespa), in 2002.

For more information, please visit www.brasiltelecom.com.br.

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 expectation that the Continuity solution will provide
fully integrated roaming for users between fixed-line and mobile networks
developed on UTStarcom's IP-based mSwitch(TM) softswitch platform, the
expectation that the solution can be quickly deployed with Brasil Telecom's
existing infrastructure and will enable the operator to defend against
subscriber churn and better compete against other mobile service providers,
the anticipated conduct and significance of the trial in the commercial
deployment of the solution, the expectation that Continuity solution can
dovetail with Brasil Telecom's existing infrastructure and long-term network
expansion plans, and the expectation regarding the support from local, in-
country service and support organizations that would enable the solution to
respond to any customer query. 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 Brazil and
globally, the termination of significant contracts, the evolving nature of
relationships with strategic partners, 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 UTStarcom's products, general adverse economic
conditions, and trends and uncertainties such as changes in government
regulation and licensing requirements, both in Brazil and globally. UTStarcom
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.