UTSTARCOM/NEC DELIVER MULTIMEDIA BROADBAND TO BRAZIL.

UTStarcom, Inc. (NASDA Q:UTSI), a provider of next-generation technology for telecommunication carriers, and NEC Brazil, developer of telecommunication and IT solutions for carriers, corporations and government entities, have formed an alliance to provide innovative broadband solutions in Brazil. The deal is one of several partnerships between the two companies aimed at bringing high-speed voice, data, and video services to Latin America.

Under this alliance, UTStarcom will provide its next-generation IP-based broadband technology, and NEC will integrate UTStarcom's products into the country's existing infrastructure to offer new and innovative solutions to service providers.

"NEC Brazil, with 35 years in operation and a solid reputation as a leading solutions provider, is the ideal partner to introduce UTStarcom as a new entrant to the Brazilian market. Both companies possess a formidable position in the market and leadership in the industry, and will now leverage their leadership to offer the most innovative solutions to operators," said Rene Mendez, vice president of UTStarcom Latin America and Caribbean.

The AN-2000 IB(TM) is the IP-DSLAM platform that is used to provide a wide variety of high-quality and easily implemented multimedia solutions, providing faster return on investment to telecommunication carriers in addition to preparing them to perform with Next Generation Networks (NGN). Using UTStarcom's technology, operators can offer "triple play" services to its customers, enabling access to high-speed voice, video, and data applications.

"We believe UTStarcom responds perfectly to the market demand for multimedia broadband solutions, offering carriers revenue generating solutions and a rapid return on their investment, which means savings for the end user as well as the possibility of always aggregating new multimedia services," stated Paulo Castelo Branco, president of NEC Brazil.

UTStarcom serves as equipment vendor to some of the largest operators around the world, including Yahoo! BB in Japan. Yahoo! BB has successfully implemented the UTStarcom IP-DSLAM technology, resulting in significant reductions in both operations costs and capital expenditures, as well as a dramatic increase in subscribers. Yahoo! BB currently has 2.8 million subscribers, to whom it offers fast Internet access, IP telephony, Wireless LAN, subscription TV, and video-on- demand services through a single vehicle.

NEC Brazil has actively participated in the broadband market since the inception of a growth in demand in mid 2002. Having acquired extensive knowledge of the telecommunications networks of most of the fixed carriers in the country following the implementation of the infrastructure, NEC began to develop new solutions and services for its clients that are actively performing in components related to broadband. In addition to local knowledge, NEC possesses significant experience in both the European and Asian markets that can be applied according to the demands of the Brazilian market.

UTStarcom, which was recently ranked ninth in Forbes.com's "25 Fastest Growing Tech Companies," is strategically expanding its presence throughout Latin America. As part of this expansion, UTStarcom recently acquired selected assets of CommWorks, a 3Com subsidiary, and is now partnering with companies like NEC to offer relevant capabilities and integrated solutions for operators. UTStarcom is leveraging its position as the leading IP-DSLAM provider in the world to bring next-generation IP solutions to the Brazilian market.

About NEC Brazil

In the country since 1968, NEC Brazil is a subsidiary of NEC Corporation, established in Japan. NEC Brazil services are directed to the corporate sect or and solutions segment of carriers, the government and corporations.

NEC Brazil offers advanced end-to-end solutions of communication for the integration and convergence of voice, data and video (VoIP); Connection Infra - structure of Internet, Extranet and Intranet (LAN, WAN, WLAN); Services i n the field of Information Technology (projects, implementation, network management and information security); NEAX family of PABX IP; Contact Center Connection, Dialing for Active Call Center; Videoconference; PID Digital Biometric Impression, Servers; Broadband Access Solutions; Mobile Internet Solutions (WAP Gateway functionalities, in addition to portal, SMS, LIS, and others).

NEC also contributes in the electronic sector, in the area of computers, with the implementation of mainframe computers in projects of public entities , as well as in projects of the automatization projects. Known as a technological pioneer in the telecommunications market, NEC Brazil is responsible for the systems of color televisions, digital central phone operations, and analog and digital mobile communications in Brazil.

For more information, visit http://www.nec.com.br.

About UTStarcom

Founded in 1991 and headquartered in Alameda, California, UTStarcom is a leading global provider of wireless and wireline access and IP switching solutions. The company designs, manufactures, sells, and installs an integrated suite of future-ready access network and next-generation switching solutions. We enable wireless and wireline operators in fast- growth markets worldwide to offer voice, data, and Internet access services rapidly and cost effectively by utilizing their existing infrastructure.

UTStarcom's products provide a seamless migration from wireline to wireless, from narrowband to broadband, and from circuit- to packet-based networks by employing "Next Generation Network Technology. Now." The company's customers include public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world.

For more information about UTStarcom, visit the company's Web site at http://www.utstar.com or call 510/749-1510.