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UTStarcom Concludes Strategic Alternatives Process

ALAMEDA, Calif., June 1 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that the special committee of the company's
board of directors has concluded its previously announced assessment of
strategic alternatives.

UTStarcom Concludes Strategic Alternatives Process
UTStarcom Concludes Strategic Alternatives Process

Announces the Departure of UTStarcom China CEO Ying Wu


'After careful consideration of a number of short- and long-term
alternatives, we have determined that our best course of action is to move
forward with the company as it exists today,' said
Thomas Toy, chairman of
UTStarcom's board of directors. 'Our stated goal when we commenced the
strategic alternatives process in October 2006 was to explore potential
options to maximize the company's value for UTStarcom's shareholders. In
exploring those alternatives, we concluded that the optimal means of enhancing
shareholder value is to focus our efforts on returning the company to
profitability by building on the opportunities we have developed in key
markets around the world.'

In addition, the company today announced the departure of
Ying Wu,
executive vice president and chief executive officer of UTStarcom China.

'In the course of analyzing our strategic alternatives over the last
several months, it has become apparent that there are differing opinions
regarding the company's strategy to enhance shareholder value,' said
Hong Lu,
chief executive officer. 'We recognize Ying's service to UTStarcom during his
tenure with the company and wish him well in future endeavors.'

With Wu's departure, UTStarcom Chief Executive Officer
Hong Lu will serve
as head of the company's China operations on an interim basis and will
continue in his current role as chief executive officer and president of
UTStarcom, Inc.

'The Chinese market was the foundation on which UTStarcom was built and
will continue to be an integral part of the company's success today and in the
future,' Lu said. 'Over the coming months, I intend to spend a significant
amount of time in China to focus on our China operations and our long-
established relationships with our carrier customers.'

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

Forward-Looking Statements

This release includes forward-looking statements by and about UTStarcom,
including without limitation statements concerning the company's plans to
continue operations as it exists today, the presence of, and the company's
plans to build on, opportunities, and the anticipated continuing focus of
and UTStarcom on the company's China operations. These statements are
forward-looking in nature and subject to risks and uncertainties that may
cause actual results to differ materially. These risks include, but are not
limited to, the changing nature of opportunities that may be available to the
company. The company 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 Commission.

SOURCE UTStarcom, Inc.