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Company Signs Contract with China Unicom to Supply T66 Handsets for Unicom's World Wind Service

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

'We're very happy that our advanced T66 dual-mode solution was selected by
the top mobile service brand in China,' said
Simon Le, senior vice president
of UTStarcom China. 'We believe the contract lays the foundation on which we
can continue to develop more best-in-class products for World Wind users by
leveraging our expertise in dual-mode technology.'

Targeted at middle- to high-end users, the T66 handset is designed to meet
the needs of both business users and of consumers who want entertainment
features. The CDMA and GSM modes of the T66 handset is designed to be able to
stand by simultaneously, which can enable users to choose either mode at any
time to make a phone call or send a short message. The original World Wind
dual-mode phones could support either CDMA or GSM at any one time, but could
not support both simultaneously.

The T66 has two 2.6-inch Thin Film Transistor (TFT) color screens and a
1.3 megapixel camera that supports several camera modes and digital zoom plus
a built-in 64M T Flash. The handset is also designed to support MP4 film
broadcasting and stereo sound, as well as MP3 broadcasting and a music
information display. The T66 has a classic, stylish shell design with three
groups of functional buttons and a flashlight. The handset will be available
in both black and silver.

About China Unicom's World Wind Service

World Wind dual-mode mobile phone service, launched by China Unicom in
August 2004, is designed to enable users to switch between CDMA and GSM with a
dual-mode handset. The bundled CDMA and GSM service is expected to enhance
roaming capability and network coverage. More importantly, the service gives
existing GSM subscribers of China Unicom or other operators an additional
choice for enjoying the high-speed and value-added services provided by CDMA
1X networks.

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 impact of the contract with China Unicom
on the Company's product development efforts, the anticipated ability of the
T66 handset to meet the consumer needs and expectations, the anticipated
functionality, features and design of the T66 handset, the expectation that
World Wind dual mode service will enable users to switch between CDMA and GSM
with a dual mode handset, and the anticipated ability of World Wind dual mode
service to improve roaming capability, network coverage and consumer choice.
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, either in China or globally, the termination of
significant contracts and/or strategic relationships, the direction and
results of future research and development efforts, evolving product and
applications standards, reduction or delays in system deployments, product
transitions, potential non- realization of backlog, 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, either in China, or 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.