UTStarcom Announces Trial of Its 'Continuity' Solution With Brasil Telecom


ALAMEDA, Calif., Feb. 8 /PRNewswire-FirstCall/ -- UTStarcom, Inc. (NASDAQ:UTSI), a global leader in IP-based, end-to-end networking solutions and services, today announced a trial of its Continuity(TM) fixed-mobile convergence (FMC) solution with Brasil Telecom, a tier-one fixed-line and mobile operator with more than 12 million subscribers in Brazil.

UTStarcom's Continuity solution is designed to provide fully integrated roaming for users between fixed-line Voice-over-IP (VoIP) networks and mobile networks developed on the company's IP-based mSwitch(TM) softswitch platform.

See companion release announced today titled, "UTStarcom to Launch End-to-End Fixed-Mobile Convergence Solution at 3GSM World Congress 2006."

"As one of the leading operators in all of Latin America and a key member of the Fixed Mobile Convergence Association, Brasil Telecom is always at the forefront in providing next-generation services to its subscribers," said Francisco Santiago, Vice President of Operations at Brasil Telecom.

UTStarcom's Continuity platform is a flexible, end-to-end solution that can be quickly deployed with Brasil Telecom's existing infrastructure. It is designed to enable the operator to defend against subscriber churn and compete with other mobile service providers for GSM subscribers, which totaled 86.2 million users in Brazil at the end of 2005.

The trial, which began in February 2006, will be conducted in Brasilia, the country's capital city and headquarters for Brasil Telecom.

"We believe this trial is the first step toward the commercial deployment of UTStarcom's Continuity solution with a top-tier service provider in Latin America with more than 12 million subscribers," said Rene Mendez, Vice President of Sales in the CALA region at UTStarcom, Inc. "Our Continuity solution is designed to provide a deployment approach that dovetails with Brasil Telecom's existing infrastructure scenario and long-term network expansion plans and is supported by our strong, local, in-country service and support organization to respond to any customer query."

About Brasil Telecom
Brasil Telecom is the first super carrier in Brazil to supply, in an integrated way, all market's demands with convergent solutions in fixed and mobile telephone services, voice and data transmission, national and international long distance services, data center services, as well as Internet access (broadband and dial-up).

The company provides local wire line and mobile telephone services in the Federal District and in the Brazilian states of Acre, Rondonia, Tocantins, Mato Grosso, Mato Grosso do Sul, Goias, Parana, Santa Catarina and Rio Grande do Sul, as well as national and international long distance services all over the country.

In addition, Brasil Telecom offers broadband Internet access (Turbo), with ADSL technology; broadband content through its providers BrTurbo and BrTurbo Empresas; and wireless broadband Internet access (BrTurbo ASAS), with WiFi technology. Internet providers iG (dial-up and broadband) and iBest (dial-up) are also part of Brasil Telecom Group, which makes the company the largest Internet provider in Latin America.

Brasil Telecom has over 10.8 million fixed lines installed and the second largest broadband base in Latin America. In last than 15 months of full commercial operation, the company reached over 2.2 million customers in mobile telephone services.

In return of all customers' trust in Brasil Telecom's products and services, the company supports and sponsors cultural, social and sports projects, always aiming to establish long-term partnerships that contribute to the country's development.

Transparency and unrestrictive access to information in the company's relations with investors and shareholders reinforce the soundness and confidence of investing in Brasil Telecom. The company was the first Brazilian fixed telephone services operator resulting from the privatization process to list ADRs (American Depositary Receipts) in the New York Stock Exchange (NYSE), in 2001, and is the first in its industry to join the Level 1 Corporate Governance Classification at Bolsa de Valores de Sao Paulo (Bovespa), in 2002.

For more information, please visit www.brasiltelecom.com.br.

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.

Forward-looking Statements
This release includes forward-looking statements, including the foregoing statements regarding the expectation that the Continuity solution will provide fully integrated roaming for users between fixed-line and mobile networks developed on UTStarcom's IP-based mSwitch(TM) softswitch platform, the expectation that the solution can be quickly deployed with Brasil Telecom's existing infrastructure and will enable the operator to defend against subscriber churn and better compete against other mobile service providers, the anticipated conduct and significance of the trial in the commercial deployment of the solution, the expectation that Continuity solution can dovetail with Brasil Telecom's existing infrastructure and long-term network expansion plans, and the expectation regarding the support from local, in- country service and support organizations that would enable the solution to respond to any customer query. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These risk factors include rapidly changing technology, the changing nature of global telecommunications markets, both in Brazil and globally, the termination of significant contracts, the evolving nature of relationships with strategic partners, the direction and results of future research and development efforts, evolving product and applications standards, reduction or delays in system deployments, product transitions, changes in demand for and acceptance of UTStarcom's products, general adverse economic conditions, and trends and uncertainties such as changes in government regulation and licensing requirements, both in Brazil and globally. UTStarcom also refers readers to the risk factors identified in its latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission.

Source: UTStarcom, Inc.

CONTACT: Chesha Kamieniecki, Director of Investor Relations of UTStarcom, Inc., +1-510-749-1560; or press, Stephanie Gallagher of Engage PR,
+1-510-388-3287, or stephanie@engagepr.com, for UTStarcom Inc.

Web site: www.utstar.com/

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