Virgin Mobile USA and UTStarcom Cut the Fat from Cell Phones!

New SLICE Handset is Super Skinny, Affordable and Requires No Activation

Fee or Contract

Oct 23, 2006, 01:00 ET from Virgin Mobile USA

    WARREN, N.J. and HAUPPAUGE, N.Y., Oct. 23 /PRNewswire/ -- The saying
 "flat as a pancake" takes on a whole new meaning when used to describe the
 newest mobile phone from Virgin Mobile USA and UTStarcom Personal
 Communications, a division of UTStarcom, Inc. (Nasdaq:   UTSI). Named the
 SLICE, this trim bar-style handset is the thinnest cell phone currently
 available in the U.S. without a contract or an activation fee, measuring
 just 0.4" -- less than half an inch. The SLICE is available now at Virgin
 Mobile retail partners and will be available online at as of November 2nd, at the "slim" price of
     (Logo: )
     "It's unbelievable that something as thin as a CD jewel case boasts
 both the latest in technology and an array of the industry's hottest mobile
 features," said Dan Schulman, chief executive officer, Virgin Mobile USA.
 "The SLICE's stylish design, slim profile and unique flat keypad, combined
 with Virgin Mobile's Pay As You Go wireless service, will make this an
 incredibly appealing handset for our youthful customer base." According to
 Virgin Mobile's own research, 33% of current cell phone users(1) say they
 want a thin design for their next mobile phone.
     "SLICE is another example of UTStarcom's dedication to developing
 innovative mobile devices that are practical, fashionable and affordably
 priced," Philip Christopher, president of UTStarcom Personal
 Communications. "We believe this handset will be a popular gift to give
 this holiday season to teens and young adults."
     The SLICE comes pre-loaded with hot new games, including Midnight Pool
 Players Club and Platinum Solitaire Players Club, from Virgin Mobile. With
 a powerful Lithium Ion 900 mAh battery, continuous talk time for the SLICE
 is up to 230 minutes (3.8 hours), standby is up to 270 hours. The SLICE
 measures 4.3" (h) x 1.8" (w) x 0.4" (d) and weighs only 2.3 ounces. The
 seamless keypad, which emits a bright blue backlight when pressed, makes
 text messaging a cinch.
     With a built-in speakerphone for hands-free talking, the SLICE features
 a 1.5" 65K Color STN (128 x 128) color screen with 32 MB/8 MB (Flash/RAM)
 memory capacity that can hold up to 500 phone book entries. The SLICE also
 utilizes Qualcomm's CMX(TM)-enabled ringtones and screensavers, which
 supports popular audio (MIDI, QCP, MP3, MPD) and image (PNG, JPG, GIF,
 Animated GIF) formats. Virgin Mobile customers can download superphonic
 ringtones, games and screensavers.
     About UTStarcom Personal Communications
     UTStarcom Personal Communications is changing the way the world
 communicates through innovative wireless devices that deliver advanced
 communications solutions to improve personal lifestyles.
     UTStarcom Personal Communications provides wireless communications
 devices including handsets, PocketPCs and wireless broadband modems to
 carriers throughout North and South America and supplies every CDMA carrier
 in the U.S. and Canada. The company's products are manufactured by its
 parent company, UTStarcom, Inc. (Nasdaq:   UTSI), and by third-party original
 equipment manufacturers. UTStarcom Personal Communications Division is
 based in Hauppauge, New York, and maintains offices and support facilities
 throughout the U.S., Canada, Latin America, Korea and India.
     UTStarcom, Inc. is a global leader in IP access networking solutions
 and international service and support. The company sells its wireline,
 wireless, optical and switching solutions to operators around the world.
 Founded in 1991 and headquartered in Alameda, California, the company has
 research and design operations in New Jersey, China, and India.
     About Virgin Mobile USA, LLC
     Launched nationally in July of 2002, Virgin Mobile USA, LLC is the
 nation's first wireless network created for and defined by youth. Virgin
 Mobile is a joint venture between Sir Richard Branson's Virgin Group and
 Sprint Nextel, which operates one of the largest 100-percent digital,
 nationwide PCS wireless networks in the United States. The country's first
 mobile virtual network operator (MVNO), Virgin Mobile's four million
 customers have access to a service portfolio that includes multiple voice
 pricing options, a full range of handsets and a broad array of messaging,
 music and mobile content offerings -- without long-term contracts. J.D.
 Power and Associates has recognized Virgin Mobile as America's top prepaid
 wireless carrier for Customer Satisfaction Excellence and for providing "An
 Outstanding Customer Service Experience" under the Certified Call Center
     Virgin Mobile phones are available at more than 25,000 locations
 nationwide with Top-Up cards available at more than 100,000 locations
 nationwide. Virgin Mobile products can also be purchased online at or by calling 888-322-1122.
     Forward-Looking Statements
     This release includes forward-looking statements by and about
 UTStarcom, including the foregoing statements regarding the anticipated
 price of the SLICE, the expectations regarding the appeal of the SLICE to
 young cell phone users, the expectations regarding the market performance
 of the SLICE during the holiday season, and the anticipated dimensions,
 features, battery life and functionality of the SLICE. These risk factors
 include the termination of significant contracts and/or strategic
 relationships, evolving product and applications standards, reduction or
 delays in system deployments, changes in demand for and acceptance of the
 Company's products, general adverse economic conditions, and trends and
 uncertainties such as changes in government regulation and licensing
 requirements. 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
     (1) 2006 Virgin Mobile USA Market Segmentation Proprietary Study

SOURCE Virgin Mobile USA