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UTStarcom Selected by Sri Lanka Telecom to Launch IPTV Services on the South Asian Island

ALAMEDA, Calif., June 17 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI) today announced a multi-million dollar contract with Just In
Time Holdings Pvt Ltd. to supply its industry-leading RollingStream(R)
end-to-end Internet Protocol TV (IPTV) solution to Sri Lanka Telecom Public
Ltd. Co. (SLT), the country's largest tier-one wireline and incumbent
operator.

UTStarcom Selected by Sri Lanka Telecom to Launch IPTV Services on the South Asian Island
UTStarcom Selected by Sri Lanka Telecom to Launch IPTV Services on the South Asian Island

(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)

SLT, a provider of international and domestic voice, Internet, and data
services, will use the RollingStream platform to bring IPTV services to its
growing customer base throughout Sri Lanka. SLT, with more than 87 percent
market share and a wireline subscriber base of more than 1,300,000 customers,
expects to grow its residential and commercial business through its increased
triple play capabilities now available with this IPTV deployment.

'UTStarcom's market position is unique in that it primarily offers
'end-to-end' IPTV solutions,' noted
Gary Schultz, president of MRG, Inc.,
which publishes the semi-annual IPTV Global Market Leader Report that tracks
deployments in six IPTV sub-sectors in Asia, Europe, North America and
Rest-of-World.* 'In terms of the total number of actual IPTV sub-sectors --
and subscribers -- served, UTStarcom is the leading end-to-end supplier in the
Asian IPTV market. IPTV, as an application-enabler, continues to open up new
opportunities for revenue generation for service providers. MRG forecasts
global IPTV network capital expenditure (CAPEX) to grow at a 16 percent
Compound Annual Growth Rate (CAGR) over the next few years, as service
providers provision differentiated service offerings to further their
competitive edge.'

SLT's IPTV deployment is designed to support approximately 100,000
subscribers in the next two years and will enable the company to provide video
services to future subscribers over copper lines in the next three to four
years.

'Sri Lanka Telecom is well-known in the region as a tier-one
communications provider and is credited with establishing several industry
firsts in the country,' said
Vijay Yadav, managing director for UTStarcom in
South Asia. 'UTStarcom is looking forward to the opportunities our
relationship with Sri Lanka Telecom will present in the region and we are
committed to providing the operator with a competitive IPTV solution that will
extend SLT's strides and solidify Sri Lanka as a major telecom hub in South
Asia
.'

UTStarcom's RollingStream end-to-end IPTV system currently supports more
than 850,000 live IPTV subscribers globally and maintains a total system
capacity exceeding 2.5 million subscribers as a result of recent successful
deployments in China with
China Netcom and China Telecom, in India with Bharti
Airtel, MTNL/Aksh and UTL, in Japan with Softbank, in Latin America with
Brasil Telecom and in Taiwan with Markwell.

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 http://www.utstar.com.

About Sri Lanka Telecom Public Ltd. Co.

Sri Lanka Telecom is one of the country's most valuable blue chip
companies with an annual turnover in excess of Rs 40 billion. While Global
Telecommunications Holdings N.V. of Netherlands owns a 35.2% stake in Sri
Lanka
Telecom (SLT), 49.2% is owned by the Government of Sri Lanka and 15.3%
is listed on the Colombo Stock Exchange. The company was also awarded an AAA
(sri) rating by Fitch Ratings Lanka followed by a BB- international rating by
Fitch International and Standard & Poor's. SLT Group has a customer base of
over two million including multinational corporations, large and small
corporate, retail and domestic customers. Today SLT provides facilities and
services including voice, data, video and mobile to its customers, which are
unmatched in scope. These services range from domestic and international
voice, advance data transmission services which include internet services on
leased lines, broadband (on ADSL) and dial up, data circuits, frame relay
solutions to IP services such as IP-VPN based on IP-MPLS technology, total
corporate solutions of multiple services, satellite uplink services and mobile
telephony through the fully owned subsidiary Mobitel.

With a view to making Sri Lanka a broadband island, SLT is in the process
of introducing the necessary infrastructure in the form of Next Generation
Networks (NGN) using optical fibre backbone and broadband services such as IMS
and IPTV. SLT also provides high speed global connectivity to countries in the
South Asian region through its investments in international submarine cables
such as SMW3, SMW4 and the Bharat Lanka submarine cable (between India and Sri
Lanka
) and Dhirragu-SLT submarine cable system between Maldives Islands and
Sri Lanka. Newly incorporated SLT Hong Kong Ltd, a fully owned subsidiary of
Sri Lanka Telecom, is fully geared to provide services such as IP transit,
IPVPN, IPLC and International voice traffic transit services to global telecom
operators and corporations in Hong Kong. For more information, please visit
http://www.slt.lk.

About Just In Time Holdings (Pvt) Ltd.

Incorporated in 1996, Just in Time Holdings Pvt Ltd. (JIT) delivers a wide
portfolio of industry specific IT solutions, hardware and network equipment
and integrated end-to-end solutions. Based in Sri Lanka, the company's sales
and professional services teams combine problem solving with innovative
technology to effectively address the business and IT needs of our customers.
JIT Group consists of Just in Time Technologies (Pvt) Ltd., Just in Time
Holdings (Pvt) Ltd., Techsys (Pvt) Ltd. and Integrated BPO Solutions Pvt Ltd.,
as subsidiaries. For more information, visit http://www.jithpl.com/.

*Footnote: Asian IPTV Sub-sectors tracked by MRG, Inc. include Video
Headends, Middleware, Set-top-boxes, Content Protection, Video-on-Demand
(VOD), and Access, which together comprise an 'End-to-End IPTV System.'

Forward Looking Statements

This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, regarding UTStarcom's future
strategy, including statements regarding the company's geographic markets
providing the best growth opportunities and delivering the company's customers
the most compelling solutions available. These statements are forward-looking
in nature and subject to risks and uncertainties that may cause actual results
to differ materially. Factors that could cause actual results to differ
materially from those contained in our forward-looking statements include:
increased competition; failure to rapidly and successfully develop and
introduce IPTV product in this region; the anticipated growth in demand for
IPTV in Sri Lanka; the rapidly changing nature of IPTV technology and the
telecommunications market; termination of new contracts, partnerships or
alliances; changes in government regulation and licensing requirements in Sri
Lanka
; and risks associated with delays in product development or customer
acceptance. Please also refer to UTStarcom's periodic reports that are filed
from time to time with the Securities and Exchange commission, including our
latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K. UTStarcom assumes no obligation to, and does not
currently intend to, update these forward-looking statements.

SOURCE UTStarcom, Inc.