BEIJING, June 17 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc. (Nasdaq: UTSI) today signed a comprehensive strategic cooperation agreement with China Merchants Bank (CMB) in Harbin. In the next three years, CMB will provide strong credit support to UTStarcom in major projects of forefront product research, development, production and sales in the field of modern communications. As the two represent domestic financial innovation and communications technology innovation respectively, the cooperation can be described as a perfect "innovative" combination.
Under the agreement, the two parties will engage in a range of financing arrangements. CMB will increase credit and provide prioritized support to UTStarcom's projects related to Triple Network Convergence. During the agreement's three-year duration, CMB will provide UTStarcom with a credit line up to RMB2 billion, of which at least RMB1 billion will be provided in the first year to support the successful implementation of UTStarcom's major projects.
At the signing ceremony, CMB Harbin Branch President Zhou Weilin said: "CMB chose UTStarcom as our comprehensive strategic cooperation partner for its excellent innovation capability. In addition, through innovation and transformation, it has achieved a magnificent turn to become a top supplier in China's Triple Network Convergence and leads the future trends of Triple Network Convergence as well as NGB development and evolution. Beginning with the cooperation, the two sides will deepen cooperation in forefront product research, development, production and sales in the field of modern communications. CMB will provide UTStarcom with comprehensive and integrated financial services such as credit support, financial leasing, bond financing, trust banking and financial consultation in key projects. The two sides will work together to build a new platform and mechanism to develop their cooperation, further integrate resources, enhance information exchange, upgrade the gradation and level of strategic collaboration, expand the scope of cooperation, strengthen cooperation content and enhance the value of cooperation to make concerted efforts for the construction and development of Triple Network Convergence, thus to create a new type of bank-enterprise strategic partnership and jointly achieve a new leap forward in strategic development."
Commenting on the deal, UTStarcom COO Jack Lu said, "China Merchants Bank is well known for business innovation in China's financial sector, with strong professional competence and good sense of service. Also continuously pursuing innovation and development, UTStarcom is delighted to be cooperating with China Merchants Bank. In the rapid development of Triple Network Convergence, Today's agreement will further boost our development of a business that is one of the government's top priorities and it is expected to provide financial security for UTStarcom's efforts in this area. At the beginning of this year, UTStarcom announced the move of its operating headquarters to Beijing -- a strong testament to our great choice."
UTStarcom is a leading supplier of technology and equipment for Triple Network Convergence, which sees the blending and cross over of voice, internet and broadcast services across these three networks. UTStarcom supplies the broadcast & TV and telecommunications industries with customized business and network solutions that have a wide range of applications.
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.
For more information please visit: http://www.utstar.com
About China Merchants Bank
China Merchants Bank is the sixth largest commercial bank by assets in China and are currently among the top 100 banks in the world. In the 22 years since their inception China Merchants Bank have grown from a small bank with one office and capital totaling USD 14.5 million to a national bank with net capital of USD 12.33 billion and more than 600 offices in 40 major cities across China. As of September 30th, 2008, their total assets have reached USD 214 billion. China Merchants Bank are recognized by both domestic and international media as well as the general public as China's Best Retail Bank and Best Bank overall.
This release includes forward-looking statements, including statements regarding the Company's cooperation with China Merchants Bank and related credit line and the Company's ability to rapidly push Triple Network Convergence in China. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These risks include the ability of the Company to successfully implement its major projects and to realize the anticipated benefits of its cooperation with China Merchants Bank as well as 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. The Company is in a period of significant transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this release are based upon information available to the Company as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statement.
SOURCE UTStarcom, Inc.