UTStarcom Secures Commercial Contract With Shandong Electric Power Corporation; Second Contract For UTStarcom's New NetRing(TM) Transport Network Solution

UTStarcom Secures Commercial Contract With Shandong Electric Power
Corporation; Second Contract For UTStarcom's New NetRing(TM) Transport Network
Solution

China's Electric Power Project Contractor Chooses MPLS-TP TN Portfolio for
Data Service Carrier Network

ALAMEDA, Calif., Nov. 3 /PRNewswire-FirstCall/ -- UTStarcom, Inc. (Nasdaq:
UTSI) announced today that it has secured a contract with Shandong Electric
Power Corporation (SEPCO) for its recently launched NetRing(TM) Transport
Network product portfolio (NetRing TN). SEPCO will use the NetRing TN
solutions to build a data service carrier network for SEPCO's Dezhou Grid,
marking the first commercial application of packet transport network (PTN) in
China's domestic power industry.

(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)

"It is clear that the need for packet-based core transport solutions extends
far beyond traditional network services," said Peter Blackmore, CEO of
UTStarcom. "SEPCO invested in our TN solution because we could deliver
increased network efficiencies while simultaneously lowering operating costs.
This reinforces the value of UTStarcom's new PTN portfolio and demonstrates an
opportunity to expand our reach to broader customer markets, such as the power
industry."

Confronted with mass data processing, SEPCO chose UTStarcom's multiprotocol
label switching - transport profile (MPLS-TP) solution to assist with data
transmission between the regional, municipal and county-level power grid
assets in ten sub-cities within the Dezhou and Shandong provinces. During this
three-phase deployment, UTStarcom will apply two sets of NetRing TN725 and
twelve sets of NetRing TN705 to the grid to form the core convergence layer 10
gigabyte mesh network. Additionally, ten sets of NetRing TN703 will be
deployed to create an access layer of Gigabit Ethernet network that delivers
high bandwidth efficiency and reliability to the Dezhou Grid and can provide
complete administrative control over the electric data network.

"SEPCO is committed to innovation, and as a result, we're experiencing rapid
growth in our data services. This is generating new requirements for
efficiency, flexibility, reliability and manageability of our network
bandwidth - which our original MSTP network can no longer support," said Yong
Zhang, Chief Engineer of SEPCO. "We look to the experience, expertise and
forward-thinking technology of UTStarcom to accelerate the evolution of our
data transmission technology from MSTP to PTN. This advanced new platform will
ensure that we meet the needs of smart grid now and in the future."

For more information about the NetRing TN solutions portfolio, please visit
http://www.utstar.com/Products/Optical_Transport_Networks/MPLS-TP/ .

About Shandong Electric Power Corporation
Shandong Electric Power Corporation undertakes critical responsibility of
supplying safe, reliable and high-quality electricity to support social and
economic development and optimizing allocation of electric resources in the
province by planning, constructing and operating Shandong Grid. It directly
serves 7.63 million clients with power supply to over 93 million people. A
total staff of 40,300 is distributed to 17 city-level power suppliers and 31
ultra-high-voltage companies and infrastructure constructors. It is also
mandated to manage 90 county-level bulk sale power suppliers across the
province.

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. The
company was founded in 1991 and is headquartered in Alameda, California. 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 regarding UTStarcom's
future strategy, including statements regarding the company's transport
network product portfolios. 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; failure to
rapidly and successfully develop and introduce new products; risks associated
with delays in product development or customer acceptance and implementation
of new products and technologies. 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.

SOURCE UTStarcom, Inc.

Barry Hutton, Senior Director, Investor Relations of UTStarcom, Inc.,
+1-510-769-2807, barry.hutton@utstar.com; or Sara Zavala, Account Supervisor
of Edelman, +1-702-644-2465, sara.zavala@edelman.com, for UTStarcom