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UTStarcom Signs New Contract Valued at $26.5 Million with China



RELATED SYMBOLS: (UTSI)

ALAMEDA, Calif., Feb 11, 2003 /PRNewswire-FirstCall via COMTEX/ -- UTStarcom
Inc., (Nasdaq: UTSI), a leading provider of wireless, wireline, and broadband
access equipment, today announced that it has signed a contract valued at
approximately $26.5 million with China Telecom for new deployments of its
IP-based PAS(TM) (Personal Access System) platform in Wuhan city, the provincial
capital of Hubei Province of China.

(Photo: http://www.newscom.com/cgi-bin/prnh/20001102/UTSILOGO )

As one of the major national telecom network hubs in China, Wuhan, with a
population of about seven million, enjoys fast telecom development due to a
growing local economy in the province of about 60 million people.

"This contract is the largest PAS/iPAS deployment in Hubei Province," said Simon
Le, senior vice president of UTStarcom China. "Through utilizing our softswitch
core network technology in the iPAS system, we are competitively positioned to
deploy more PAS/iPAS systems as well as other access systems in Hubei Province
that will support a comprehensive suite of voice, data, and broadband
connections."

Le adds, "UTStarcom is confident that this new iPAS system will repeat the same
success it has achieved in another provincial capital, Chengdu."

Chengdu, a city with a similar population size as Wuhan, is the provincial
capital of Sichuan Province, which is also located in inland China. Since its
inauguration of PAS services early last year, it has undergone two expansions
and now has over 640,000 total PAS users with an increasing value-added services
subscriber base.

Introduced in China in 1998 as a replacement to antiquated fixed-line systems,
UTStarcom's PAS technology gained more than seven and a half million Chinese
customers as of December 2002, and now owns more than 60 percent of the
country's market share for the sector. 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 in China,
Taiwan, Vietnam, and soon to be in the United States, UTStarcom dominated the
worldwide PAS market in 2002, being named the top manufacturer by Merrill Lynch
in October 2002. In addition to its leadership in PAS, UTStarcom also earned the
top spot in the worldwide softswitch market in the second and third quarters of
last year from Infonetics Research, and rated second in the DSLAM sector from
Synergy Research, both key technology areas in high-growth markets.

About UTStarcom, Inc.

UTStarcom designs, manufactures, sells, and installs an integrated suite of
future-ready access network and next-generation switching solutions. We enable
wireless and wireline operators in fast-growth markets worldwide to offer voice,
data, and Internet access services rapidly and cost effectively by utilizing
existing infrastructure.

UTStarcom's products provide a seamless migration from wireline to wireless,
from narrowband to broadband, and from circuit- to packet-based networks by
employing "Next Generation Network Technology. Now."

The company's customers include public telecommunications service providers that
operate wireless and wireline voice and data networks in rapidly growing
communications markets around the world.

Founded in 1991 and headquartered in Alameda, California, the company
manufactures the majority of its products at its ISO9002 certified facilities
located in China, and maintains sales and customer support sites throughout
Mainland China and in Iselin, NJ; Alameda, CA; Miami, FL; Frankfurt, Germany;
Mexico City, Mexico; Taipei, Taiwan; Tokyo, Japan; Bangkok, Thailand; Hanoi and
Ho Chi Minh City, Vietnam; and New Delhi, India.

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

NOTE: PAS, AN-2000, WACOS and the UTStarcom name and logo are trademarks of
UTStarcom, Inc. and its subsidiaries.

Forward-Looking Statements

The foregoing statements regarding the expansion of PAS deployments in the Hubei
province and the continued consumer demand for PAS services in the Hubei
province are forward-looking in nature and are therefore subject to the risks
and uncertainties that may cause actual results to differ materially. These
factors include rapidly changing technology, the changing nature of China's
telecommunications markets, possible delays in the system deployments or product
introductions, possible downturns in the telecommunications markets both in
China and worldwide, the termination of new contracts, partnerships or alliances
in the Hubei province, reductions or potential cancellation or non-recognition
of backlog and uncertainties, such as changes in government regulation and
licensing requirements in China. The Company also refers readers to the risk
factors identified in its Annual Report on Form 10-K and its Quarterly Reports
on Forms 10-Q as filed with the Securities and Exchange Commission.

SOURCE UTStarcom, Inc.


CONTACT: Michael J. Sophie, Vice President of Finance, CFO,
[phone], or Chesha Kamieniecki, Investor Relations Manager,
[phone], both of UTStarcom, Inc.; or Stephanie Gallagher of Engage PR,
[phone], ext. 213, or [e-mail], for UTStarcom, Inc.
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20001102/UTSILOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or [phone]

URL: http://www.utstar.com
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Copyright (C) 2003 PR Newswire. All rights reserved.

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KEYWORD: California
China
INDUSTRY KEYWORD: CPR
TLS
NET
ECP
SUBJECT CODE: CON

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