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Virgin Mobile USA and UTStarcom Cut the Fat from Cell Phones!

WARREN, N.J. and HAUPPAUGE, N.Y., Oct. 23 /PRNewswire/ -- The saying 'flat
as a pancake' takes on a whole new meaning when used to describe the newest
mobile phone from Virgin Mobile USA and UTStarcom Personal Communications, a
division of UTStarcom, Inc. (Nasdaq: UTSI). Named the SLICE, this trim
bar-style handset is the thinnest cell phone currently available in the U.S.
without a contract or an activation fee, measuring just 0.4' -- less than half
an inch. The SLICE is available now at Virgin Mobile retail partners and will
be available online at as of November 2nd, at
the 'slim' price of $49.99.

Virgin Mobile USA and UTStarcom Cut the Fat from Cell Phones!
Virgin Mobile USA and UTStarcom Cut the Fat from Cell Phones!

New SLICE Handset is Super Skinny, Affordable and Requires No Activation Fee or Contract

(Logo: )

'It's unbelievable that something as thin as a CD jewel case boasts both
the latest in technology and an array of the industry's hottest mobile
features,' said
Dan Schulman, chief executive officer, Virgin Mobile USA.
'The SLICE's stylish design, slim profile and unique flat keypad, combined
with Virgin Mobile's Pay As You Go wireless service, will make this an
incredibly appealing handset for our youthful customer base.' According to
Virgin Mobile's own research, 33% of current cell phone users(1) say they want
a thin design for their next mobile phone.

'SLICE is another example of UTStarcom's dedication to developing
innovative mobile devices that are practical, fashionable and affordably
Philip Christopher, president of UTStarcom Personal Communications.
'We believe this handset will be a popular gift to give this holiday season to
teens and young adults.'

The SLICE comes pre-loaded with hot new games, including Midnight Pool
Players Club and Platinum Solitaire Players Club, from Virgin Mobile. With a
powerful Lithium Ion 900 mAh battery, continuous talk time for the SLICE is up
to 230 minutes (3.8 hours), standby is up to 270 hours. The SLICE measures
4.3' (h) x 1.8' (w) x 0.4' (d) and weighs only 2.3 ounces. The seamless
keypad, which emits a bright blue backlight when pressed, makes text messaging
a cinch.

With a built-in speakerphone for hands-free talking, the SLICE features a
1.5' 65K Color STN (128 x 128) color screen with 32 MB/8 MB (Flash/RAM) memory
capacity that can hold up to 500 phone book entries. The SLICE also utilizes
Qualcomm's CMX(TM)-enabled ringtones and screensavers, which supports popular
audio (MIDI, QCP, MP3, MPD) and image (PNG, JPG, GIF, Animated GIF) formats.
Virgin Mobile customers can download superphonic ringtones, games and

About UTStarcom Personal Communications

UTStarcom Personal Communications is changing the way the world
communicates through innovative wireless devices that deliver advanced
communications solutions to improve personal lifestyles.

UTStarcom Personal Communications provides wireless communications devices
including handsets, PocketPCs and wireless broadband modems to carriers
throughout North and South America and supplies every CDMA carrier in the U.S.
and Canada. The company's products are manufactured by its parent company,
UTStarcom, Inc. (Nasdaq: UTSI), and by third-party original equipment
manufacturers. UTStarcom Personal Communications Division is based in
Hauppauge, New York, and maintains offices and support facilities throughout
the U.S., Canada, Latin America, Korea and India.

UTStarcom, Inc. is a global leader in IP access networking solutions and
international service and support. The company sells its wireline, wireless,
optical and switching solutions to operators around the world. Founded in 1991
and headquartered in Alameda, California, the company has research and design
operations in New Jersey, China, and India.

About Virgin Mobile USA, LLC

Launched nationally in July of 2002, Virgin Mobile USA, LLC is the
nation's first wireless network created for and defined by youth. Virgin
Mobile is a joint venture between
Sir Richard Branson's Virgin Group and
Sprint Nextel, which operates one of the largest 100-percent digital,
nationwide PCS wireless networks in the United States. The country's first
mobile virtual network operator (MVNO), Virgin Mobile's four million customers
have access to a service portfolio that includes multiple voice pricing
options, a full range of handsets and a broad array of messaging, music and
mobile content offerings -- without long-term contracts. J.D. Power and
Associates has recognized Virgin Mobile as America's top prepaid wireless
carrier for Customer Satisfaction Excellence and for providing 'An Outstanding
Customer Service Experience' under the Certified Call Center Program(SM).

Virgin Mobile phones are available at more than 25,000 locations
nationwide with Top-Up cards available at more than 100,000 locations
nationwide. Virgin Mobile products can also be purchased online at or by calling 888-322-1122.

Forward-Looking Statements

This release includes forward-looking statements by and about UTStarcom,
including the foregoing statements regarding the anticipated price of the
SLICE, the expectations regarding the appeal of the SLICE to young cell phone
users, the expectations regarding the market performance of the SLICE during
the holiday season, and the anticipated dimensions, features, battery life and
functionality of the SLICE. These risk factors include the termination of
significant contracts and/or strategic relationships, evolving product and
applications standards, reduction or delays in system deployments, changes in
demand for and acceptance of the Company's products, general adverse economic
conditions, and trends and uncertainties such as changes in government
regulation and licensing requirements. UTStarcom 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.

(1) 2006 Virgin Mobile USA Market Segmentation Proprietary Study

SOURCE Virgin Mobile USA