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UTStarcom Receives Nasdaq Notification Related to Late Filing of its Form 10-K for the Full Year 2006

ALAMEDA, Calif., March 13 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that, as expected, the Company has received an
additional Nasdaq Staff Determination Notice stating that the Company has
failed to file its Annual Report on Form 10-K for the fiscal year ended
December 31, 2006 (the '2006 Form 10-K') and, therefore, is not in compliance
with Marketplace Rule 4310(c) (14). As previously disclosed, Nasdaq initially
informed the Company on November 15, 2006 that its securities would be
delisted for failure to timely file its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2006 (the 'Q3 2006 Form 10-Q'), unless the Company
requested a hearing in accordance with applicable Nasdaq Marketplace rules.

UTStarcom Receives Nasdaq Notification Related to Late Filing of its Form 10-K for the Full Year 2006
UTStarcom Receives Nasdaq Notification Related to Late Filing of its Form 10-K for the Full Year 2006

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The Company subsequently requested and was granted a hearing with the
Nasdaq Listing Qualifications Panel (the 'Listing Panel') on January 25, 2007.
On February 28, 2007, the Listing Panel granted a conditional extension to the
Company's request for continued listing on the Nasdaq Global Select Market
until April 16, 2007 for the Company to make its requisite filings. This
extension granted by the Listing Panel expressly contemplated the delayed
filing of the Q3 2006 Form 10-Q.

As previously communicated on February 1, 2007, the Nominating and
Corporate Governance Committee of the Company's Board of Directors (the
'Governance Committee') review found that in certain instances all actions
that establish a measurement date under the requirements of Accounting
Principles Board No. 25, Accounting for Stock Issued to Employees, had not
occurred at the grant date, which had been used as the measurement date in
accounting for Company stock option grants. A later date, when all such
actions had taken place, should have been used as the measurement date for
these stock options. The Audit Committee of the Company's Board of Directors
(the 'Audit Committee') then determined, in consultation with and on the
recommendation of the Company's management, the effect of using incorrect
measurement dates would require the Company to record material additional
stock-based compensation charges in its previously issued financial
statements. The Company therefore previously announced, based on preliminary
information, its previously issued financial statements for the years 2000
through 2006, including interim periods within these fiscal years, should no
longer be relied upon, and its estimate that the restatement may involve
additional non-cash compensation and related charges of approximately $50

This information is preliminary and is subject to changes that might
result from completion of the Governance Committee's investigation,
management's and the Audit Committee's review of the findings of the
Governance Committee, and an audit by the Company's independent registered
public accounting firm, but it provides management's best estimates based on
available information.

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, Canada,
China, Korea and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, please visit the company's Web site

Forward-Looking Statements

Information in this release regarding the status and determinations
resulting from the Governance Committee's independent review, the Audit
Committee's assessment of the results of that review, Company management's
estimate of the total amount of additional non-cash stock-based compensation
charges that may be recognized, and the present expectations concerning the
timing of filings with the SEC, as well as other expectations and beliefs, are
forward-looking statements that involve risks and uncertainties. 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. These
statements are not guarantees of future performance and actual results could
differ materially from our current expectations. Factors that could cause or
contribute to such differences include the final conclusions of the Governance
Committee (and the timing of such conclusions) concerning matters relating to
stock option grants, the review of such conclusions by the Audit Committee,
Company management, and the Company's independent registered public accounting
firm, and other risks detailed from time to time in the Company's SEC reports
and filings, including our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K.

The investigation regarding timing of past stock option grants and other
potentially related issues is ongoing, and the determinations of the
Governance Committee, the Audit Committee and the Company's management
discussed in this release are preliminary. In addition, the investigation and
possible conclusions have had and may in the future have an impact on the
amount and timing of previously awarded stock-based compensation expense and
other related additional charges to be recorded for previously awarded equity
grants; our ability to file required reports with the SEC on a timely basis;
our ability to meet the requirements of the NASDAQ Global Select Market for
continued listing of our shares; potential claims and proceedings relating to
such matters, including shareholder or employee litigation and action by the
SEC and/or other governmental agencies; and negative tax or other implications
for the Company resulting from any accounting adjustments or other factors.

SOURCE UTStarcom, Inc.