RollingStream Platform Serves as First Video Information Distribution Network in China's Hunan Province ALAMEDA, Calif., Oct. 14 /PRNewswire-FirstCall/ -- UTStarcom, Inc. (NASDAQ:UTSI) today announced it has signed an agreement with Best Tone Information Service Corporation Ltd., a wholly-owned subsidiary of China Telecom Corporation Ltd. (NYSE: CHA; HKG: 0728), with the intent to deploy a video information distribution network in the Hunan province of China. This is the second large-scale interactive advertising system that UTStarcom's end-to-end RollingStream(R) Internet Protocol TV (IPTV) platform will power in China, both of which are expected to change the way subscribers view advertisements. UTStarcom previously announced the launch of the first interactive advertising network with Guangxi Telecom Company Limited, also a wholly-owned subsidiary of China Telecom Corporation Limited, in July 2008. (Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO) Best Tone is working with UTStarcom to build and operate a Chinese-specific, building-based video information network and distribution system, with 3,500 iPAD1000 terminals scheduled to go live in office buildings, government facilities, supermarkets, hotels, hospitals and schools in the Hunan Province this year. The iPAD1000 technology integrates UTStarcom's RollingStream IPTV set-top boxes, an ADSL modem, Wi-Fi adapter, IPTV network connection and video monitor into a single terminal station. The network, intended to generate new revenue opportunities by streaming commercial advertisements throughout Hunan Province, is expected to support a total of 10,000 terminals in the region upon completion of the project. "UTStarcom's RollingStream IPTV solution provides the foundation that Best Tone needs to most effectively leverage our expansive broadband network to create valuable new marketing channels for our customers' products and services," said Zhenbo Zhang, vice general manager of Hunan Branch, China Telecom Corporation Ltd. "As a long-time partner of China Telecom's Hunan Branch, UTStarcom has consistently proven that it understands and is in line with our long-term goals to transform into a true information and communications service provider." Best Tone's one-stop information network provides users with access to services such as Best Tone's free 114 Internet search portal for the Web, blogs, forums and news; 114 Directory Assistance; yellow pages; integrated media services and interactive advertising . It strives to provide business information to government and corporate users and information about daily life to individual consumers. "UTStarcom's long-term IPTV presence in China provides unique expertise in developing and delivering interactive services," said Robert Wu, CEO of UTStarcom China. "Increasingly, companies are seeking out new ways to reach consumers beyond traditional advertising methods. UTStarcom's RollingStream solution is assisting service providers in addressing this need and further monetizing their existing networks." UTStarcom's RollingStream(R) end-to-end IPTV system currently supports more than 956,000 live IPTV subscribers globally and maintains a current total system capacity of more than 2.5 million subscribers as a result of recent successful deployments in China with China Netcom and China Telecom, in India with Bharti Airtel, BSNL/Aksh, MTNL/Aksh and United Telecoms Limited, in Sri Lanka with SLT, in Japan with Softbank, in Latin America with Brasil Telecom and in Taiwan with Markwell. About Best Tone Information Service Corporation Ltd. Best Tone Information Service Corporation Limited of China Telecom Group is a wholly owned subsidiary of China Telecom Corporation Limited. Registered in Shanghai in August 2007, the company offers one-stop service network covering the whole country, providing users with information service including Best Tone, yellow pages, audio guide and comprehensive media. It strives to provide business information to the government and corporate users and daily life information to the personal users. Focusing on the strategy of China Telecom Group -- "transferring from a traditional telecom carrier to an information and communications service provider", the company will hold on the core value of "Comprehensive Innovation, Pragmatic Execution, People-oriented Approach, Value-added Cooperation", be customer-oriented and develop diversified information services, striving to be a provider of authoritative information release solution, advanced business information search engine, and professional consumer information service. 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 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 development operations in the United States, Canada, China, Korea and India. For more information about UTStarcom, visit the company's Web site at http://www.utstar.com/. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding UTStarcom's future strategy, including statements regarding the anticipated deployment of an interactive advertising system in China using the Company's RollingStream IPTV platform. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. Factors that could cause actual results to differ materially from those contained in our forward-looking statements include: increased competition; economic issues in the identified geographic markets; risks associated with delays in product development, system deployment or customer acceptance; termination of contracts, partnerships or alliances; anticipated number of subscribers, traffic and content; and changes in government regulation and licensing requirements. Please also refer to UTStarcom's periodic reports that are filed from time to time with the Securities and Exchange commission, including our latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. UTStarcom assumes no obligation to, and does not currently intend to, update these forward-looking statements. http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO http://photoarchive.ap.org/ DATASOURCE: UTStarcom, Inc. CONTACT: Darleen DeRosa, Senior Director, Corporate Public Relations of UTStarcom, Inc., +1-510-769-2830, ; or Sara Zavala, Senior Account Executive of Edelman, +1-702-644-2465, , for UTStarcom, Inc. Web site: http://www.utstar.com/

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