UTStarcom Expands IPTV Leadership in China With New Contract in Shanxi Province With China Telecom

UTStarcom Expands IPTV Leadership in China With New Contract in Shanxi Province With China Telecom

Over 80 Percent of All IPTV Subscribers in China on UTStarcom's RollingStream(TM) End-to-End System

ALAMEDA, Calif., Jan. 24 /PRNewswire-FirstCall/ -- UTStarcom, Inc. (NASDAQ:UTSI), a global leader in IP-based, end-to-end networking solutions and services, today announced a contract with China Telecom (CTC) to deploy its RollingStream(TM) end-to-end IPTV solution for a new commercial IPTV network in China's Shanxi Province.

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The initial deployment, supporting 30,000 subscribers, is planned to include 14 service points covering major metropolitan areas of Xian, the capital city of Shanxi Province. The service is expected to offer up to 80 channels of live, broadcast television; 24-hour time-shifting capability; approximately 10,000 hours of video-on-demand (VOD) content; and valued-added services including karaoke and gaming.

"UTStarcom continues to build on its leadership in the IPTV market in China and this contract is further validation of the strength, reliability and security of our RollingStream end-to-end IPTV system," said Ying Wu, president and chief executive officer of UTStarcom China. "Many of our initial IPTV deployments in China are currently undergoing network expansions as demand for the service has grown. Additionally, we are seeing new deployments emerge as fixed-line operators are realizing the potential for deploying IPTV services to combat subscriber churn and increase average revenue per user."

At ITU Telecom World 2006 in Hong Kong last month, UTStarcom's RollingStream IPTV solution was named the best IPTV solution worldwide by Communications Weekly, a leading publication under the guidance of the Ministry of Information Industry (MII) in China. UTStarcom was also awarded the Development Contribution Award for its efforts for IPTV standardization in China.

About UTStarcom's RollingStream

UTStarcom's RollingStream(TM) is an end-to-end solution designed for telecommunications operators and broadband service providers to deliver broadcast quality TV and on-demand entertainment programming over IP networks. RollingStream is designed to offer service providers the scalability, reliability, and bandwidth efficiency to support new services including broadcast TV, Network PVR (n-PVR), Video on Demand (VoD), and Near Video on Demand (NVoD) over existing network infrastructures, which may result in opportunities for increased revenues, new services, and improved customer satisfaction and retention. For more information about UTStarcom's RollingStream solution, please visit: http://www.utstar.com/Solutions/Broadband/IPTV .

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 broadband, wireless, and handset solutions to operators in both emerging 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 the United States, Canada, China, Korea and India. UTStarcom is a FORTUNE 1000 company.

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

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing statements regarding the anticipated scope, content and features of the RollingStream initial deployment in Shanxi Province, and the expectations regarding the market demand for, and the benefits to service providers from the use of, the RollingStream solution. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These risk factors include rapidly changing technology, the changing nature of global telecommunications markets, the termination of contracts and/or strategic relationships, the direction and results of future research and development efforts, evolving product and applications standards, reduction or delays in system deployments, product transitions, potential non-realization of backlog, changes in demand for and acceptance of the Company's products, both in China and globally, general adverse economic conditions, and trends and uncertainties such as changes in government regulation and licensing requirements, both in China and globally. The Company also refers readers to the risk factors identified in its latest 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.

FCMN Contact: ckamieniecki@utstar.com

Photo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO
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Source: UTStarcom, Inc.

CONTACT: Andy Tennille, Senior Manager, Public Relations, of UTStarcom,
Inc., +1-510-814-4421, or andy.tennille@utstar.com

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

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