Vonage(R) and UTStarcom Partner to Introduce Portable Wi-Fi Handset

Vonage(R) and UTStarcom Partner to Introduce Portable Wi-Fi Handset

Affordable F-1000 Handset Offers Users Portable Voice Over IP Service for Home, Office and Hot Spots

LAS VEGAS, Jan. 4 /PRNewswire/ -- Vonage, the leading broadband phone company, and UTStarcom Inc., a global leader in IP-based, end-to-end networking solutions and services, today announced a partnership to introduce a portable Wi-Fi handset, the F-1000, configured with Vonage's Voice over IP (VoIP) phone service. This product, which will offer mobility across 802.11b networks, will be available nationwide to Vonage subscribers during the spring/summer 2005.

"Recognizing the need for consumers and small businesses to have a myriad of options when communicating with family, friends and business associates, Vonage is excited to partner with UTStarcom to offer its subscribers a Wi-Fi handset," stated Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corp. "More important, UTStarcom's Wi-Fi portable handset bundled with Vonage's VoIP service will lead the way in modernizing telecommunications as we know it, as now customers will have the option of mobile VoIP service."

The Vonage and UTStarcom relationship enables consumers and small businesses to have more flexibility when it comes to making phone calls. Further, this collaboration offers retailers a groundbreaking opportunity to increase sales and expand into a new category, capitalizing on Vonage's leadership in broadband telephony and UTStarcom's leadership in next- generation telecommunications solutions.

(For more information on UTStarcom's F1000 handset, see the companion announcement, "UTStarcom Unveils Its First Portable Wi-Fi Handset," also released today.)

"UTStarcom has historically been an innovator of disruptive technologies that alter the way people communicate," said Hong Lu, chief executive officer at UTStarcom. "Our successful Personal Access System (PAS(TM)) solution, with more than 36 million users worldwide, is a perfect example of a disruptive technology that filled a void for reliable, low-cost wireless service in emerging markets in Asia and Latin America. Similarly, we believe our new SIP- enabled Wi-Fi handset disrupts the mobile communications landscape as it allows users to take advantage of the rapid growth of Wi-Fi worldwide. Vonage subscribers can use our new handset as a replacement to their fixed-line phone at home should they have Wi-Fi access, or as a complementary means of communication outside of the home when they are in range of a Wi-Fi hotspot. UTStarcom is committed to working with Vonage to expand the reach of VoIP communications worldwide."

"Together, Vonage and UTStarcom are working toward revolutionizing the telecommunications industry," Citron added.

About Vonage(R)

Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage's service area encompasses more than 2000 active rate centers in over 150 global markets. Vonage is sold directly through www.vonage.com and retail partners such as SAM's Club, Amazon.com, RadioShack, Best Buy, Circuit City, Staples, Fry's Electronics, Office Depot and CompUSA. Wholesale partners such as EarthLink, ARMSTRONG(R), Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 400,000 lines in service, Vonage continues to add more than 30,000 lines per month to its network. Over 10 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit http://www.vonage.com/ or call 1-VONAGE-HELP. Vonage(R), Vonage Digital Voice(TM), Toll Free Plus(SM) and Virtual Phone Number(SM) are trademarks of Vonage Holdings Corp.

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 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 http://www.utstar.com/.

Forward-Looking Statements

As they related to UTStarcom, the foregoing statements regarding, without limitation, those regarding the anticipated availability of UTStarcom Wi-Fi mobile handsets configured with Vonage's VoIP phone service in Spring/Summer 2005, ability of such a product to modernize or revolutionize the telecommunications industry, ability of UTStarcom's collaboration with Vonage to allow retailers to increase sales and expand into new categories and the ability of UTStarcom's handset to disrupt the mobile communications landscape are forward-looking in nature and are subject to risks and uncertainties that may cause actual results to differ materially. These factors include rapidly changing technology, the changing nature of the telecommunications market in general and the Wi-Fi and handset markets in particular, the possibility of slower than expected growth in the telecommunications market, evolving product and application standards, changes or delays in product introductions and deployments (including, but not limited to, the introduction of Wi-Fi mobile handsets configured with Vonage's VoIP phone services), the termination or material amendment of significant contracts, partnerships or alliances, including those with Vonage, and other uncertainties, such as changes in government regulation and licensing requirements in relevant markets. UTStarcom also refers readers to the risk factors identified in its 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: Vonage

CONTACT: Mitchell Slepian of Vonage, +1-732-528-2677, cell,
+1-732-688-1721, or Mitchell.slepian@vonage.com; or Chesha Kamieniecki of
UTStarcom Inc., +1-415-786-9684, or chesha.kamieniecki@utstar.com; or
Jeannette Bitz of Engage PR, +1-510-748-8200, ext. 207, or jbitz@engagepr.com

Web site: http://www.vonage.com/


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