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UTStarcom Received Final Acceptance Certificate of US$10 million Contract from Jersey Telecom

Jun. 14, 2011 (PR Newswire) --

BEIJING, June 14, 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 received a final acceptance certificate ("FAC") on a US$10 million contract of next generation core telecoms network ("NGN") from Jersey Telecom Limited ("JT").

UTStarcom and JT have been working together since year 2008 to implement a new core infrastructure for JT and its affiliated companies. UTStarcom is the supplier of JT's NGN infrastructure, which coupled with JT's world leading "Gigabit Isles" fiber, is used in the home roll-out program to enable every household and business in Jersey to have fiber into their premises within approximately 5 years. The UTStarcom NGN product provides customers, such as JT, with advanced technology and services, including the fastest possible broadband speeds within the Channel Islands.

"We are encouraged to receive the FAC on this sizable contract from Jersey Telecom, one of our important customers," said Jack Lu, Chief Executive Officer of UTStarcom. "JT has demonstrated its outstanding growth potential to us and we will continue to further improve our long-term, mutually beneficial relationship."

In addition, UTStarcom and JT signed a Memorandum of Understanding in which the companies agreed to work together to develop a research and development laboratory in Jersey, which in the future can also be used for training. UTStarcom will be able to test new products and services in the Jersey Lab and develop cutting edge services for Jersey's residents and businesses.

"I am delighted to sign this Memorandum on behalf of JT," commented Mr. Dave Newbold, Chief Operations and Technical Officer of JT. "JT and UTStarcom have been steadily building a powerful relationship since 2008. This Memorandum pays tribute to the strength of the relationship. We'll be working closely with UTStarcom to develop new products and services, which will benefit all our customers on both a local and global basis."

UTStarcom's mSwitch™ NGN solution is a flexible IP-based platform designed to provide voice communications over an IP network. It carries more than 500 billion minutes of usage (MoU), representing a sizable share of global Voice over IP ("VoIP") transfer. The Company was among the few to pioneer the MPLS based Telecom transport technology.

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

About Jersey Telecom Limited

Jersey Telecom Limited is wholly owned subsidiary of Jersey Telecom Group (JTG), which is the largest provider of telecommunications services in the British Channel Islands. JTG offers a full range of services across mobile, fixed and data networks to both residential and business customers. The major operation of JTG is located in London, Melbourne and Boston.

Forward-Looking Statements

This release includes statements regarding the parties' intent to jointly develop a research and development lab in Jersey. 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 establish the lab in the anticipated timeframe; risks associated with delays in product development or customer acceptance; 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.