$75 Million 3G Value Added Services Contract

7th April , 2004

Europe : UTStarcom, Inc. announced a new contract with China Netcom Corporation (CNC) valued at approximately $75 million to expand deployments of its IP-based PAS (Personal Access System) (iPAS(TM)) in China's Hebei Province. China Netcom is using UTStarcom's next generation IP switching infrastructure (mSwitch(TM)) to expand its iPAS capacity in 11 cities and is also extending the network to another 30 counties within the province.

"There are nearly two million iPAS subscribers in Hebei," said Johnny Chou ( inset above ), president and chief operating officer of UTStarcom China. "Subscribers continue to be attracted by UTStarcom's extensive value-added service (VAS) platform, which offers users short-messaging (SMS), multi-media messaging (MMS) and C-MODE based Web browsing and wireless Internet access."

Since its introduction to the province in 1999, CNC Hebei's iPAS service has already been expanded three times to meet the tremendous subscriber demand. Following this expansion, iPAS networks will cover more than 90 percent of the province. According to CNC Hebei, PAS has become the key revenue driver in the province and will continue be a focus throughout 2004. PAS subscribers currently represent more than 60 percent of new fixed-line subscribers in the province.

PAS Wireless Access Solutions

UTStarcom's PAS wireless network solutions are designed to enable a rapid network expansion and an easy migration from fixed to wireless networks, enabling service providers to offer wireless voice and data services within a city or community. 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 Latin America, UTStarcom is the leader in the worldwide PAS market.

About UTStarcom, Inc.

UTStarcom is a global leader in IP access, next-generation switching and networking solutions and international service and support. The company sells its wireline, wireless, optical and switching solutions to operators in both fast growth 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 New Jersey, China, and India. UTStarcom is a FORTUNE 1000 company.

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