UTStarcom Completes Divestiture of Its Personal Communications Division
ALAMEDA, Calif., July 7 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), today announced that the divestiture of its Personal
Communications Division ('PCD') disclosed on July 1, 2008 was completed that
same day. The divestiture of PCD, to AIG Investments, represents a milestone
in simplifying the operations of UTStarcom and enhances the company's focus on
its IP-based product offerings. The proceeds of approximately US$240 million,
based primarily on the working capital levels on June 30, 2008 are subject to
certain adjustments. According to the agreement, UTStarcom could also receive
up to US$50 million based on a three-year earn out provision.
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
centers in the
For more information about UTStarcom, please visit the UTStarcom Web site
This release includes forward-looking statements, including the foregoing
statements regarding the anticipated amount of adjustments, whether the
company's operations will be simplified and whether the three-year earn out
will be attained. 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 risk factors identified in its latest Quarterly Report
on Form 10-Q, as filed with the Securities and Exchange Commission.
SOURCE UTStarcom, Inc.