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Telefonica del Sur to Offer Wireless Voice and Data Services in Rural Chile Powered by UTStarcom IP-Based Personal Access System

ALAMEDA, Calif., May 30 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced a contract with Telefonica del Sur (Telsur) to
expand the operator's existing IP-based Personal Access System (iPAS(TM))
networks to Coyhaique, capital city of the Aysen Region in Chilean Patagonia.

Telefonica del Sur to Offer Wireless Voice and Data Services in Rural Chile Powered by UTStarcom IP-Based Personal Access System
Telefonica del Sur to Offer Wireless Voice and Data Services in Rural Chile Powered by UTStarcom IP-Based Personal Access System

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'Telsur continuously invests in providing telephony services to the most
remote, hard-to-reach regions of Chile because we firmly believe that reliable
communications is the first step in bridging the digital divide,' said Jorge
Atton, chief executive officer at Telsur. 'We looked at different technology
alternatives to provide this service and iPAS certainly was the most reliable,
environmentally friendly choice. UTStarcom's iPAS technology has been integral
in increasing telephony penetration rates in Chile as a low-cost wireless
complement to traditional fixed-line service.'

'For the last three years, UTStarcom and Telsur have collaborated to
deliver affordable wireless voice and data services to the people of Chile,'
Rene Mendez, vice president of sales and marketing in Latin America for
UTStarcom. 'Today's announcement marks another significant step in our
collaboration as we bring IP-based telephony services to Coyhaique, one of the
most remote municipalities in all of Chile.'

PAS Wireless Access Solutions

Field proven in the fastest growing telecom market in the world,
UTStarcom's PAS solutions offer subscribers citywide wireless voice and data
services at highly affordable prices. Using UTStarcom's IP next-generation
softswitching technology, the PAS solution is designed to enable operators to
extend their fixed-line networks with feature-rich wireless services, rapidly
expand networks to meet increased subscriber demand, and seamlessly integrate
broadband and future 3G technologies into their service portfolios.

UTStarcom's PAS and iPAS(TM) (IP-Based Personal Access System) services
offer service providers and subscribers unique and attractive advantages over
competing wireless services. For operators, PAS is designed to provide a two-
to-three year return on investment (ROI), increase average revenue per user
(ARPU), decrease CAPEX investments and reduce OPEX expenditures avoiding home
wire installations, and providing the ability to support new applications and
diversified value-added services. For subscribers, PAS is designed to provide
affordable mobile telecommunications service with an array of features. In
addition to high-quality voice service, UTStarcom PAS users enjoy short
messaging service (SMS), C-MODE based web browsing, 64Kbps wireless Internet
access, and location-based services.

UTStarcom's proven expertise in IP technology and its mSwitch(TM)
converged next-generation softswitching platform give it a distinct advantage
over other global telecom vendors. UTStarcom's converged switching platform is
designed to allow operators to deploy iPAS, 3G, and wireline/broadband
services side-by-side utilizing a common switching infrastructure to address a
wide range of user needs and interests. With more than 60 million lines of
next-generation softswitching deployed throughout Mainland China, Taiwan,
Vietnam, Thailand, Africa, and Latin America, UTStarcom is the worldwide
leader in IP core networking.

About Telsur

Telefonica del Sur is the leading telecommunications company in the south
of Chile, covering regions VIII to XI. Besides its solid position in the fixed
telephony market, it also offers Broadband and switched Internet business
areas, tele-surveillance services, alarms and access control, national and
international long distance services through 121 Telefonica del Sur, and the
recently added Blue Two Chile, the company developing the implementation of
the first public broadband wireless Internet network, using Bluetooth and WiFi

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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 development operations in the United States, Canada,
China, Korea and India. For more information about UTStarcom, visit the
company's Web site at

Forward-Looking Statements

The foregoing statements regarding, without limitation, the anticipated
expansion of the operator's IP-based telephony system in Chile using the
Company's products, the anticipated growth in demand for services that utilize
the Company's products, the remote locations of the proposed expansion and the
Company's plans to continue to develop the Chilean market are forward-looking
in nature and are subject to risks and uncertainties that may cause actual
results to differ materially. These factors include rapidly changing
technology, the rapidly changing nature of the telecommunications market in
Chile, possible delays in system deployments, the nature of the remote
locations in Chile of the proposed expansion service, and other uncertainties
such as changes in government regulation and licensing requirements and
economic and political stability in Chile and Latin America generally.
UTStarcom also refers readers to the risk factors identified in its 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.