UTStarcom Announces $41 Million in Handset Contracts With China Telecom
UTStarcom Announces $41 Million in Handset Contracts With China Telecom

UTStarcom Announces $41 Million in Handset Contracts With China Telecom

UTStarcom Announces $41 Million in Handset Contracts With China Telecom

UTStarcom, Inc., a global leader in IP access networking and services, today announced that it has signed contracts valued at approximately $41 million with China Telecom Corporation for handsets for its IP-based PAS (Personal Access System) (iPAS) network.

“PAS subscriber growth in China continues to be strong, though the cyclical nature of the business has shifted operator spending from new system creation to network expansion and optimization,” said Simon Le, vice president of sales for UTStarcom China.

“UTStarcom is confident that overall PAS subscribers in China will reach 65-70 million by the end of 2004 and believes that global PAS revenue will be approximately $1.8-2.0 billion for 2005. Through leveraging our in-country design and manufacturing capabilities and our ability to bundle equipment and handset sales to our service provider customers, UTStarcom continues to strengthen its dominance in the PAS handset market in China over our competitors.”

Approximately 58 million people currently subscribe for PAS service in China. UTStarcom is the leader in the China’s PAS handset market through the company’s innovative R&D and handset design capabilities, strong branding and marketing, creative bundled service offerings and overall cost competitiveness in the marketplace.

Since the end of the first quarter this year, UTStarcom has launched four new handsets and plans to have approximately 20 new PAS handset models launched by the end of the year. These new handset designs consist of both low-cost models and more advanced, high-functionality phones to meet consumer demand. According to a recent survey conducted by the People’s Daily newspaper, UTStarcom is the top brand for PAS handsets in China.

PAS Wireless Access Solutions

Field proven in the fastest growing telecom market in the world, UTStarcom’s PAS solutions offer subscribers citywide wireless voice and data services at affordable price points. Using UTStarcom’s IP next-generation softswitching technology, the PAS solution is designed to enable operators to extend their fixed-line networks with feature-rich wireless services, rapidly expand networks to meet increased subscriber demand, and seamlessly integrate broadband and future 3G technologies into their service portfolios.

UTStarcom’s PAS and iPAS(TM) (IP-Based Personal Access System) services offer service providers and subscribers unique and attractive advantages over competing wireless services. For operators, PAS provides a two-to-three year return on investment (ROI), increased average revenue per user (ARPU), and the ability to support new applications and diversified value-added services. For subscribers, PAS provides affordable mobile telecommunications service with an array of features. Besides high-quality voice service, UTStarcom PAS users enjoy short messaging service (SMS), C-MODE based web browsing, 64Kbps wireless Internet access, and location-based services.

UTStarcom believes its expertise in IP technology and its mSwitch(TM) converged next-generation softswitching platform give it a distinct advantage over other global telecom vendors. Using UTStarcom’s converged switching platform, operators can deploy iPAS, 3G, and wireline/broadband services side-by-side utilizing a common switching infrastructure to address a wide range of user needs and interests. With more than 45 million lines of next-generation softswitching deployed throughout Mainland China and Taiwan, Vietnam, Thailand, Africa, and Latin America, UTStarcom is the worldwide leader in IP core networking.

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.

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

CONTACT: Chesha Kamieniecki, Senior Manager of Investor Relations,
+1-510-749-1560, or Andy Tennille, Public Relations Associate,
+1-510-749-1212, both of UTStarcom, Inc.; or press, Stephanie Gallagher of
Engage PR, +1-510-748-8200, ext. 213, or stephanie@engagepr.com, for
UTStarcom, Inc.