UTStarcom Announces Improvements in Management Structure


BEIJING, Dec. 17, 2010 - 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 series of improvements in its management structure to better support its three strategic shifts and further align the Company for sales and marketing performance. Specific improvements and related benefits include:

o The R&D and Product Management & Marketing functions of the Broadband and Multimedia Communications business units are being combined. The Company expects this will allow it to provide customers better end-to-end solutions.

o The number of top level departments will be reduced. The Company expects this will allow streamlined management, more fluid communication, greater leverage of resources and better visibility.

o With the new structure, the Company will continue to implement sufficient controls over costs and risks.

o The newly combined Product Management & Marketing Function - which is responsible for all UTStarcom product lines including IPTV, STB, NGN, Optical and Broadband Access - as well as leading the China Service Team - which delivers service and support to customers in China - will be directly led by UTStarcom's President and CEO, Mr. Jack Lu. Top-level attention and high quality resources in these critical areas are anticipated to support the Company's topline performance.

o A Strategic Cooperation and Development Function will be established to focus on closing business ties with cable and telecom operators, developing and managing operation supporting service businesses that the Company believes will provide recurring service revenues and improve profitability.

Commenting on the improvements, Mr. Lu said, "UTStarcom is at a vital stage in its development. We believe the new management structure, which is designed to better serve the needs of our clients, will help us to execute the three shifts in our strategy at a faster pace. These improvements also allow us to better focus our energy and resources on our cable and telecom clients in Japan, China and India. We believe these changes will have meaningful cost savings that we expect to be reflected in our bottom line."

These changes are currently being implemented and the Company expects a majority of them to be completed by the end of 2010.

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 in 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.

Company Contact:

Jing Ou-Yang

Investor Relations

UTStarcom, Inc.

+86-10-85205153

jouyang@utstar.com

Brion Tingler

Kreab Gavin Anderson

+8610 6505 9816

btingler@kreabgavinanderson.com

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