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UTStarcom Announces Strategic Divestiture of Its Mobile Solutions Business Unit

ALAMEDA, Calif., June 9 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that it has reached an agreement to divest its
Mobile Solutions Business Unit ('MSBU'). The MSBU, which primarily consists
of the IPCDMA business, will be acquired by the global private equity firm
OpenGate Capital. The new name of the MSBU will be Star Solutions. UTStarcom
will retain the PDSN operations and will work with Star Solutions as an OEM
provider. The transaction is expected to close in approximately three weeks
and financial terms of the transaction were not announced.

UTStarcom Announces Strategic Divestiture of Its Mobile Solutions Business Unit
UTStarcom Announces Strategic Divestiture of Its Mobile Solutions Business Unit


'In late 2007, we announced a new strategic focus aimed at maximizing our
opportunities in IP-based technologies including IPTV, Next Generation
Networks and Broadband,' said
Peter Blackmore, UTStarcom's chief operating
officer. 'The sale of our Mobile Solutions business marks one step towards
achieving that strategic goal.'

Jack Mar, the president of UTStarcom's MSBU stated, 'We are pleased to
execute this transaction in a way that will cause no disruption to the MSBU's
ongoing operations. Star Solutions will continue to develop and offer our
unique IP based GSM/CDMA wireless solutions. Importantly, we look forward to
continue building upon the existing partnerships with our customers and
suppliers as we accomplish the next stage of our growth.'

About UTStarcom, Inc.

UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company develops, manufactures and
markets its broadband, wireless, and terminal solutions to network operators
in both emerging and established telecommunications markets worldwide.
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. UTStarcom was founded in 1991 and
is headquartered in Alameda, California. The company has research and
development centers in the USA, Canada, China, Korea and India.

For more information about UTStarcom, please visit the UTStarcom Web site

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing
statements regarding the anticipated completion of the divestiture. 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 ability of the company to complete the transaction as anticipated
as well as 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.

About Star Solutions

Star Solutions is a leading supplier of unique IP based wireless
(CDMA/GSM) mobile solutions. Star Solutions focuses on emerging markets,
offering significant OpEx savings to mobile operators. Star Solutions also
specialize in custom applications for Cruise ships, Military, Emergency
Response/Disaster Recovery, Enterprise, Wireless Local Loop and Rural Mobile
applications. With our global customer base and partners, we can offer a
single source for end-to-end wireless network solutions.

SOURCE UTStarcom, Inc.