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UTStarcom Successfully Completes 3G WCDMA Trials

6th December, 2004

US : UTStarcom announced that it has received a letter of certification from China's Ministry of Information (MII) giving the company a strong rating for its performance in the 3G WCDMA trials recently completed in China.

Inset is Hong Liang Lu Chairman, CEO and President of UTStarcom quoted below.

In its letter of acknowledgement, the 3G MTNet Trial Technical Group stated that UTStarcom's WCDMA system successfully passed all phases of the 3G testing, fared well in network functionalities, achieved roaming and interconnection with other systems as well as terminals and offers complete sets of functions and features.

"The MII's high rating of UTStarcom's performance in the 3G field trials with China Netcom in Beijing is a strong endorsement of the company's WCDMA technology in the highly competitive race for 3G vendor licensing in China," said Hong Lu, chief executive officer of UTStarcom, Inc. "UTStarcom has been a leader in 3G research in China since 1997 and currently has more than 35 million subscribers for its PAS wireless service in China. As UTStarcom's 3G WCDMA technology runs over the same IP-based softswitch platform as the company's PAS service, operators in China who offer PAS service can leverage their existing infrastructure to offer 3G services once licenses are awarded."

In December 2003, UTStarcom was selected to participate in official field trials of its 3G WCDMA solution in Beijing with China Netcom. The selection was based on UTStarcom's performance in the phase one and phase two of MII's MTNet lab testing from June 2001 to August 2003, which consisted of indoor technical tests of 3GPP compliance, interface interoperability among different vendors, and various functions and features.

The outdoor field trials, conducted by the MII's Research Institute of Telecommunications Transmission (RITT) and 3G Technical Trial Expert Group (3GTEG), were officially announced in November 2003, and testing began in February 2004. The trial required each participating vendor to provide a 3GPP-compliant commercial system, including a Radio Access Network with wide geographic coverage, and a core network with a full complement of commercial network features.

UTStarcom's key technological advantage is its mSwitch, an IP-based softswitching platform. This field-proven IP core softswitch, which is the foundation of all of the company's wireless solutions, is designed to provide cost and performance efficiency as well as scalability for the company's iPAS, CDMA2000 (MovingMedia200), TD-CDMA and WCDMA solutions. With more than 55 million lines of next-generation softswitches deployed throughout Asia, Africa, and Latin America, UTStarcom is the worldwide leader in IP core networking.

The WCDMA field trial results are indicative of UTStarcom's evolution from a vendor focused primarily on building a successful PAS business in China to a global leader in next-generation telecommunications solutions. UTStarcom believes that diversifying its solutions and expanding its relationships with top-tier carriers around the world will benefit its long-term growth and its ability to deliver value to its shareholders in 2005 and beyond. As the company continues to focus on diversifying its global customer base and expanding its product portfolio, UTStarcom expects to experience some short-term challenges. These short-term challenges are inherent to a corporate transformation of this magnitude, but will also solidify the company's position as a leader in the market and strengthen the company for continued long-term success.

About UTStarcom, Inc.

UTStarcom is a global leader in IP access 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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