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Finkelstein Thompson LLP Announces Filing of Securities Fraud Class Action Against UTStarcom, Inc.

WASHINGTON, Sept. 5 /PRNewswire-USNewswire/ -- Notice is hereby given that
Finkelstein Thompson LLP has filed a Class Action lawsuit in the United States
District Court for the Northern District of California on behalf of a class
(the 'Class') consisting of all persons or entities who purchased or otherwise
acquired the common stock of UTStarcom, Inc. ('UTStarcom' or the 'Company')
(Nasdaq: UTSI) between July 24, 2002 and September 4, 2007 inclusive (the
'Class Period').

Finkelstein Thompson LLP Announces Filing of Securities Fraud Class Action Against UTStarcom, Inc.
Finkelstein Thompson LLP Announces Filing of Securities Fraud Class Action Against UTStarcom, Inc.

A copy of the Complaint is available from the court or from Finkelstein
Thompson LLP. Please call us toll-free at (877) 337-1050 to discuss this
action or to obtain a copy of the Complaint, or contact us by email at, or visit our website at

The Complaint alleges that, throughout the Class Period, Defendants
misrepresented and omitted material facts concerning the Company's backdating
of stock option grants to its officers and executives. Specifically, Plaintiff
alleges that at all times during the Class Period, UTStarcom represented that
the exercise price of all stock options would be no less than the fair market
value of the Company's common stock, measured by the publicly traded closing
price for UTStarcom stock on the day of the grant.

However, in reality, options granted in 2002 were backdated so their
exercise price correlated to a day on or near the day UTStarcom's stock hit a
significantly low price for the year, or directly in advance of sharp
increases in the price of UTStarcom stock.

The truth regarding the Company's option granting practices was revealed
on July 24, 2007. On that date, UTStarcom announced that a review of the
Company's historical stock option grant practices uncovered evidence that
stock option grants were backdated. As a result of these findings, the Company
further announced that its previously issued financial statements for the
years 2000 through 2006 should no longer be relied upon, and would be restated
by at least $28 million. In response to this news, UTStarcom's share price
fell 22%, from a close of $4.73 on July 23, 2007 to a close of $3.70 on July
25, 2007
. The share price continued to decline thereafter.

Plaintiff seeks to recover damages on behalf of Class members and is
represented by Finkelstein Thompson LLP. Finkelstein Thompson LLP has spent
almost three decades delivering outstanding representation to institutional
and individual clients in connection with securities and other finance-related
litigation, and has been appointed as lead or co-lead counsel in dozens of
shareholder class actions. Indeed, in the past decade, the firm has served in
leadership roles in cases that have recovered over $1 billion for investors
and consumers.

If you are a member of the class, you may request that the Court appoint
you as lead plaintiff within 60 days from the date of this Notice. A lead
plaintiff is a class member appointed by the Court to direct the litigation on
behalf of the class. Although a class member need not be appointed as a lead
plaintiff to receive a proportionate share of any proceeds of the litigation,
lead plaintiffs make important decisions that could affect the prosecution of
the class claims, including decisions concerning settlement. The securities
laws create a rebuttable presumption that the plaintiff with the largest
financial interest in the litigation is the most adequate to serve as a lead

If you are a UTStarcom shareholder and wish to discuss the case or have
information relevant to the investigation, please contact our Washington, DC
office toll-free at (877) 337-1050, or by email at

SOURCE Finkelstein Thompson LLP