UTStarcom Signs $30 Million Contract With China Netcom Corporation To Expand Deployments of Its IP-Based PAS Systems in the Shandong Province.

ALAMEDA, Calif., Aug 13, 2003 /PRNewswire-FirstCall via COMTEX/ --

UTStarcom Inc. (Nasdaq: UTSI), a leading global provider of wireless and wireline access and IP switching solutions, today announced that it has signed a contract valued at approximately $30 million with China Netcom Corporation to expand deployments of its IP-based PAS (Personal Access System) (iPAS(TM)) equipment in the Shandong Province of China.

"The Shandong Province is one of the most affluent and influential provinces in China and is experiencing tremendous economic growth," said Simon Le, vice president of sales at UTStarcom China. "UTStarcom is not only the leading provider of PAS networks in the province, but also the only provider of Value Added Services (VAS) on a PAS network, which the company feels is an important strategic advantage in its popularity with subscribers."

In addition, UTStarcom has signed a contract with the CNC Shandong Province to provide a province-wide VAS platform covering all of the 17 major cities in the province -- including those covered by UTStarcom's competitors' networks. This contract ensures that all value-added services are standardized on UTStarcom equipment and further enhances UTStarcom's competitive position in the province.

About PAS: The People's Technology

Introduced in China in 1998 as a supplement to fixed-line systems, UTStarcom's PAS technology gained more than 12.5 million subscribers in China as of June 30, 2003, and commands more than 60 percent of the country's market share for the sector. Marketed as a low-cost investment option for wireless local telephone service, the PAS system features advanced voice and data services within a flexible network architecture that can be seamlessly integrated with future 3G and broadband technologies.

With deployments throughout Mainland China and Taiwan, Vietnam, Thailand, Africa, and soon in the United States, UTStarcom dominates the worldwide PAS market. Merrill Lynch named the company the top PAS manufacturer in October 2002. UTStarcom also earned the top spot in Infonetics Research reports on the worldwide softswitch market in the second, third, and fourth quarters of 2002, and in the first quarter of 2003, and Synergy Research rated UTStarcom second in the worldwide DSLAM sector. Both softswitches and DSLAMs are key technology areas in high-growth markets.

About UTStarcom, Inc.

Founded in 1991 and headquartered in Alameda, California, UTStarcom is a leading global provider of wireless and wireline access and IP switching solutions. The company designs, manufactures, sells, and installs an integrated suite of future-ready access network and next-generation switching solutions. We enable wireless and wireline operators in fast-growth markets worldwide to offer voice, data, and Internet access services rapidly and cost effectively by utilizing their existing infrastructure.

UTStarcom's products provide a seamless migration from wireline to wireless, from narrowband to broadband, and from circuit- to packet-based networks by employing "Next Generation Network Technology. Now." The company's customers include public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world.

For more information about UTStarcom, visit the company's Web site at www.utstar.com.

Forward-Looking Statements

The foregoing statements regarding the Company's ability to expand its existing installations of the PAS(TM) systems in various cities in the Shandong Province of China, the expanding telecommunications market in China, increasing demand from subscribers for voice and data networks and capabilities, the Company's estimate of continued strong revenue growth from China Netcom are forward-looking in nature and are therefore subject to the risks and uncertainties that may cause actual results to differ materially. These factors include rapidly changing technology, the changing nature of China's telecommunications markets, possible delays in the system deployments or product introductions, possible downturns in the telecommunications markets both in China and worldwide, the termination of new contracts, partnerships or alliances in the Shandong Province, reductions or potential cancellation or non-recognition of backlog and uncertainties, such as changes in government regulation and licensing requirements in China The Company also refers readers to the risk factors identified in its Annual Report on Form 10-K and its Quarterly Reports on Forms 10-Q as filed with the Securities and Exchange Commission.

SOURCE UTStarcom, Inc.
http://www.utstar.com