UTStarcom Launches End-to-End Internet TV Solution and Wins First Commercial Contract to Establish Internet TV Platform

BEIJING, May 18, 2011 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc. ("UTStarcom" or "the Company") (Nasdaq: UTSI), a leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and Broadband for cable and telecom operators, announced today that it has launched its end-to-end Internet TV solution, and also won its first commercial contract to build up an Internet TV platform in Northern China.

The new end-to-end Internet TV solution is derived from UTStarcom's core RollingStream® technology system. The Company's Internet TV solution, based on cloud computing technology, has an open system structure, reliable service and flexibility to expand for large scale deployments in the future. The innovative technology of the solution can enable the customer to easily operate, manage and control the system and subscriber information. "We believe this is the best time for us to launch our Internet TV solution which will hopefully help us capture the great growth opportunity of the Internet TV market," said Jack Lu, President and CEO of UTStarcom.

The Company also won its first commercial contract to build a new Internet TV platform for a local cable operator in Northern China.

Pursuant to the contract, UTStarcom will help to build a comprehensive Internet TV operational system which includes a broadcasting control platform, content distribution network and terminal. The Internet TV platform UTStarcom is building will provide a service where subscribers can access Internet, multimedia and telecommunications, as well as interactive digital TV, video-on-demand, and many other services under one subscription. This platform will help UTStarcom's cable operator clients to further increase their revenue opportunities through an enhanced subscriber experience. Users will be able to receive rich and clear voice and data information, as well as experience high-quality video services simultaneously. This new solution could also be applied to the Internet TV platform, which is targeted to launch later this year through UTStarcom's majority-owned subsidiary, iTV Media Inc.

"We are also delighted to win our first commercial contract in the Internet TV market. This proves that our corporate strategy is in line with the development of the industry," said Mr. Lu. "This victory demonstrates the competitive advantage of our Rolling Stream system, supporting our position in China as a leading provider of interactive, IP-based network solutions in iDTV, IPTV, and Internet TV."

About UTStarcom, Inc.

UTStarcom is a leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and Broadband for cable and telecom operators. 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 http://www.utstar.com .

Forward-Looking Statements

This release includes forward-looking statements, including statements regarding the future market of Internet TV, UTStarcom's ability to compete in the interactive, IP-based network solutions market and serve its customers in the future, the increase in revenue opportunities for UTStarcom's cable operator clients, and the anticipated launch of the new Internet TV solution. 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 failure to deploy the products in the anticipated timeframe; risks associated with delays in product development or customer acceptance; anticipated number of subscribers and traffic; economic issues in the identified geographic markets, and changes in government regulation and licensing requirements, as well as risk factors identified in its latest Annual Report on Form 10-K, as amended, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. 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.