UTStarcom Announces a Proposed Reorganization to Change Its Place of Incorporation from Delaware to the Cayman Islands


BEIJING, Jan. 10, 2011 - UTStarcom, Inc. ("UTStarcom" or "the Company") (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and international service and support in China, today announced a proposed reorganization to change its place of incorporation from Delaware to the Cayman Islands.

The reorganization is expected to involve the Company's merger with a newly formed subsidiary, as a result of which the Company will become a wholly owned subsidiary of a Cayman Islands holding company ("UTStarcom Cayman"). It is expected that each outstanding share of common stock of the Company will be converted into the right to receive one ordinary share of UTStarcom Cayman, which will be issued by UTStarcom Cayman in connection with the merger pursuant to a registered offering. Following the merger, UTStarcom Cayman, together with its subsidiaries, is expected to own and continue to conduct UTStarcom's business in substantially the same manner as is currently being conducted by UTStarcom and its subsidiaries. While UTStarcom Cayman will be taxed as a United States corporation, it is expected to qualify as a foreign private issuer for purposes of its reporting obligations with the SEC, which the Company expects will reduce its compliance operating costs. The shares of UTStarcom Cayman are expected to be listed on the NASDAQ Stock Market.

Additional Information and Where You Can Find It

This communication is being made in respect of a proposed reorganization transaction.

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 and cable 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, listed on the NASDAQ in 2000, the Company has its operational headquarters in Beijing, China and research and development operations in China and India. For more information about UTStarcom, visit the Company's Web site at www.utstar.com.

UTStarcom, Inc.

1275 Harbor Bay Parkway Suite 100,

Alameda,

CA 94502

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