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UTStarcom IPTV DRM Solution Successfully Completes Rigorous Security Audit

ALAMEDA, Calif., July 31 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced that it has successfully completed a rigorous
security audit of its IPTV DRM System. The security audit was commissioned by
UTStarcom in June 2006 and completed in April 2007 by the premier
security-engineering firm in the country Merdan Group, Inc.

UTStarcom IPTV DRM Solution Successfully Completes Rigorous Security Audit
UTStarcom IPTV DRM Solution Successfully Completes Rigorous Security Audit


According to audit results, the robustness of UTStarcom's digital rights
management (DRM) solution is among the highest that Merdan Group, Inc. has
audited. The results indicated that all areas were robust at the 'Criminal
Enterprise Level,' the highest rating, with the exception of one area
involving the Set Top Box installation that was rated at the second highest
rating of 'University Challenge Level.'

'DRM is a critical component of all IPTV systems, including UTStarcom's
RollingStream end-to-end IPTV system, and we are very pleased that our DRM
solution has received such esteemed recognition from one of the most respected
security firms in the industry,' said
Dr. Qiang Li, chief scientist of
UTStarcom, Inc. and chief architect of UTStarcom's IPTV RollingStream product
line. 'The proven and consistent, high dependency levels of UTStarcom's DRM
system reinforces our commitment to ensuring content security in our delivery
of IPTV to our customers and partners.'

UTStarcom's DRM solution further enhances its IPTV product portfolio and
its capability of deploying end-to-end IPTV system in a timely and
cost-effective fashion.

'I am pleased to announce the Merdan Group has been engaged by UTStarcom
to perform an independent security audit of their new and advanced DRM system.
We are pleased to add UTStarcom to our growing list of international
customers,' stated
Gilbert Huey, president of Merdan Group, Inc. UTStarcom
works closely with its customers and their content providers to evaluate and
identify which DRM solution available on the market will best accommodate the
needs for their system.

'Selection of a DRM solution for any IPTV service is a complex process,
involving issues related to technology, business, and geopolitics. We will
continue to take the 'DRM-neutral' position in planning IPTV deployments and
position our solution as just one of the options. We want to ensure that our
customers are satisfied with their IPTV networks from end-to-end, and we will
continue to partner with other DRM vendors to deliver the most suitable
solution to our customers,'
Dr. Li added.

UTStarcom has no current plan to offer its DRM solution as a standalone

About Merdan Group, Inc.

Merdan Group, Inc. is a privately held small business specializing in
expert security engineering services and security products. Since our
incorporation in 1971, Merdan has become one of the premier
security-engineering firms in the U.S. For over 32 years Merdan has supplied
quality expert risk mitigation security services with a reputation unmatched
in the industry. We have an extensive diverse client base to include the
highest levels of Government. Our Corporate services include: complete
security engineering for the Government, Health, Financial, fortune 500
companies, and the Cable TV/Satellite industries.

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. UTStarcom is a FORTUNE 1000 company

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

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995

The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of Section 21E of
the Securities and Exchange Act of 1934, as amended, including statements
regarding UTStarcom's expectations, beliefs, intentions or strategies
regarding the future and including, without limitation, the rapidly changing
nature of technology; continued development of the product; possible delays in
product introductions; the termination of new contracts, partnerships or
alliances; the benefits to customers provided by the product; and changes in
government regulation and licensing requirements.

All forward-looking statements included in this document are based upon
information available to UTStarcom as of the date hereof, and UTStarcom
assumes no obligation to update any such forward-looking statements.
Forward-looking statements involve risks and uncertainties, which could cause
actual results to differ materially from those projected. These risks and
other risks relating to UTStarcom's business are set forth in the documents
filed by UTStarcom with the Securities and Exchange Commission, specifically
its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, and amendments thereto.

SOURCE UTStarcom, Inc.