UTStarcom and Kapsch CarrierCom Partner to Bring IPTV to Central and Eastern Europe


New Offering to be Unveiled at the IPTV World Forum Eastern Europe

PARIS and VIENNA, June 20/PRNewswire-FirstCall/ -- UTStarcom, Inc. and Kapsch CarrierCom AG today announced a partnership to
provide next-generation broadband technology to serve the rising demand for IPTV in Central and Eastern Europe. The companies will debut the new offering at the first IPTV World Forum Eastern Europe, being staged later this week in Budapest, Hungary.

Through Kapsch CarrierCom, UTStarcom - (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services - will supply its portfolio of broadband solutions, which will enable operators and internet service providers to bring IPTV, and other next-generation services to consumers across the region.

"Kapsch CarrierCom is renowned throughout Eastern and Central Europe as a provider of cutting-edge, world-class communications technology and excellent, local customer service," said Youssef Kassissia, VP of EMEA region for UTStarcom. "We are anticipating massive growth in the demand for broadband in this region: unbundling is taking off, interconnection charges are going down, and we are confident that, together with Kapsch CarrierCom, we can meet the needs of this emerging market."

Kapsch CarrierCom has more than 20 years' experience in providing communication networks, from fixed, mobile and data networks, to broadband communication, internet solutions, next generation networks and UMTS. Kapsch CarrierCom now has local business units in Hungary, the Czech Republic, Slovakia, Croatia and Bulgaria, and has a significant presence in other countries through sales and service partners. Headquartered in Austria, Kapsch CarrierCom supports the success of the Telekom Austria Group, Czech Online, T-Com Hungary and other international operators.

"As a leading multi-vendor system innovator for communication technology solutions we have been intensively engaged in IPTV since the emergence of the technology," said Mag. Kurt Plattner, board member of Kapsch CarrierCom. "The cooperation with UTStarcom ideally complements our know-how.
This enables us to offer even more comprehensive solutions and services in the area of IPTV, now and in the future."

The companies will debut their offering at the IPTV World Forum Eastern Europe, to be held at the Budapest Marriott Hotel, Hungary, between 22-23rd June 2006.

About UTStarcom's Broadband Solutions

UTStarcom's broadband wireline solutions enable carriers to deploy IP- based, high-speed Internet, voice, data, and multimedia services over wireline networks. Designed for highly efficient, converged service delivery across an evolving networking landscape, these solutions continue to expand the capacity and performance of narrowband, broadband, and transport solutions. Our wireline broadband product offering includes a suite of optical transport platforms, extensive edge network access solutions, and a distributed IPTV and multimedia delivery system.

Earlier this month, UTStarcom announced that it had supplied over 1 million ports of IPDSLAM equipment in Europe alone.

In April 2006, UTStarcom announced it had signed a contract with China Netcom to provide an end-to-end IPTV solution in Harbin, northeast China. The deal is UTStarcom's fourth IPTV contract in China and is the single largest IPTV capacity deployment in China to date.

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, 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.

About Kapsch CarrierCom AG

Kapsch CarrierCom AG belongs to the Kapsch Group and specialises in communication solutions for operators of fixed and mobile networks for voice and data transmission. Kapsch CarrierCom covers all fields: from analysis, consulting, design, development, integration, installation and training up to maintenance and operation of complete networks.

For more information about the Kapsch Group and Kapsch CarrierCom AG, visit the company's web site at www.kapsch.com, www.kapschcarrier.com.

Source: UTStarcom, Inc.

Company Contact: Chesha Kamieniecki, Director of Investor Relations, UTStarcom, Inc., +1-510-749-1560. Press Contact: Howard Jones, GBCS PR, +44-115-948-6901, howard@gbcspr.com

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