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'We continue to move forward on the strategic alternatives process we
announced on October 11th as we explore options that will increase the
company's value for UTStarcom shareholders,' said
Thomas Toy, lead director of
the company's board of directors. 'Until this process is complete, the board
of directors has asked
Hong Lu to continue as the company's president and
chief executive officer and remain a member of the board of directors.'

On December 18, 2006,
Mr. Lu, president and chief executive officer of
UTStarcom, Inc., received a 'Wells Notice' from the staff of the U.S.
Securities and Exchange Commission (the 'Commission') in connection with an
ongoing investigation into trading activities by third parties.

The Wells notice states that the staff intends to recommend to the
Commission that it file a civil injunctive action alleging that
Mr. Lu violated Section 10(b) of the Securities Exchange Act of 1934. Under the
Commission's procedures, the recipient of a Wells notice has the opportunity
to respond to the staff before the staff makes its formal recommendation on
whether any civil action should be brought by the Commission.

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, 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 benefit of the strategic alternative
process, the anticipated continuing status of
Mr. Lu as the president and CEO
and a director of the company, and the expectations regarding the direction
and possible outcome of governmental inquiries. 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 potential changes in
the Company's management and employment decisions and the evolving course and
nature of the ongoing governmental inquiries. 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.