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Telsur Offers Customers and Innovative Telephony System to Expand Their Voice and Data Services

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'The launch of Telsur's iPAS network is a big step in the expansion
strategy of our Latin-American network. Since the Chilean market has been
deregulated, it has become one of the most sophisticated telecommunication
markets in Latin-America,' said
Rene Mendez, vice president for Latin America
and Caribbean for UTStarcom, Inc. 'UTStarcom's iPAS solutions enable Telsur to
offer both new and existing customers value-added services, and new
fixed-wireless handsets with the look and feel of a cell phone, but with the
affordability of a fixed-line phone.

'UTStarcom's iPAS solutions give us a competitive edge that's needed in
today's market,' said Lic. Jorge Atton, president of Telefonica del Sur. 'We
chose UTStarcom's technology because it is a leading provider in the
telecommunications market, and because its iPAS solutions have already been
deployed by more than 70 million subscribers all over the world. In addition,
the deployment of iPAS will help our company reach new markets, which have had
limited access to affordable telephony services in the past.'

'Today, the dynamic Chilean telecommunications market possesses the latest
infrastructure and regulatory system, as well as the highest penetration rate
in fixed lines, mobiles, and Internet in Latin-America. The maturity level of
this market has been reached through investment, competition, and innovation,'
added Mendez. 'UTStarcom is at the forefront of innovation for the Chilean
telecommunications market, and continues to help fuel its growth by offering
new services, advanced IP technologies, and competitive price packages.'

As part of its expansion strategy in Latin-America, UTStarcom continues to
implement its integrated solutions with leading operators in Guatemala,
Salvador, Colombia, Panama, Honduras, Bolivia, Mexico, Brazil, Argentina, and
now Chile. The company focuses on designing and building next-generation
access equipment that provides last-mile solutions in broadband, wireless, and
IP networks.

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 21 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
technologies.

For more information please access www.telsur.net.

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, China, Korea
and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, visit the company's Web site at
www.utstar.com.

Forward Looking Statements

The foregoing statements regarding, without limitation, the anticipated
activities and results of the partnership with Telsur, the implementation of
UTStarcom's solutions by Telsur and Telsur's ability to expand its market
reach and services 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
Chile's and Latin America's telecommunications markets, possible delays in
system deployments or product introductions, possible downturns in the
telecommunications markets of Chile, Latin America generally and worldwide,
the termination of new contracts, partnerships or alliances, 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
Current Reports on Form 8-K as filed with the Securities and Exchange
Commission.

SOURCE UTStarcom, Inc.