UTStarcom Announces Improvements in Management Structure

BEIJING, Dec. 17, 2010 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc. ("UTStarcom" or "the Company") (Nasdaq: UTSI) a global leader in IP-based, end-to-end networking solutions and international service and support in China today announced a series of improvements in its management structure to better support its three strategic shifts and further align the Company for sales and marketing performance. Specific improvements and related benefits include:

• The R&D and Product Management & Marketing functions of the Broadband and Multimedia Communications business units are being combined. The Company expects this will allow it to provide customers better end-to-end solutions.
• The number of top level departments will be reduced. The Company expects this will allow streamlined management, more fluid communication, greater leverage of resources and better visibility.
• With the new structure, the Company will continue to implement sufficient controls over costs and risks.
• The newly combined Product Management & Marketing Function – which is responsible for all UTStarcom product lines including IPTV, STB, NGN, Optical and Broadband Access – as well as leading the China Service Team – which delivers service and support to customers in China – will be directly led by UTStarcom's President and CEO, Mr. Jack Lu. Top-level attention and high quality resources in these critical areas are anticipated to support the Company's topline performance.
• A Strategic Cooperation and Development Function will be established to focus on closing business ties with cable and telecom operators, developing and managing operation supporting service businesses that the Company believes will provide recurring service revenues and improve profitability.

Commenting on the improvements, Mr. Lu said, "UTStarcom is at a vital stage in its development. We believe the new management structure, which is designed to better serve the needs of our clients, will help us to execute the three shifts in our strategy at a faster pace. These improvements also allow us to better focus our energy and resources on our cable and telecom clients in Japan, China and India. We believe these changes will have meaningful cost savings that we expect to be reflected in our bottom line."

These changes are currently being implemented and the Company expects a majority of them to be completed by the end of 2010.

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 solutions to operators in both emerging and established telecommunications and cable 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, listed in NASDAQ in 2000, the Company has its operational headquarters in Beijing, China and research and development operations in China and India. For more information about UTStarcom, visit the Company's Web site at http://www.utstar.com.

Forward-Looking Statements

This release includes forward-looking statements, including statements regarding the changes to the Company's management structure, the anticipated implementation and timing of these changes, the expected cost savings from these changes, and the predictions or expectations as to the Company's perceived benefits from the new organizational structure, including, among other things, providing customers better end-to-end solutions, increasing the efficiency, control and visibility of the management, and the Company's ability to support its sales and marketing performance upon the changes of the management structure. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These uncertainties include the amount and timing of future revenues and profits, if any, to realize anticipated results of operational improvements, to successfully transition to a new management team and headquarters location, to execute on its business plan, including identifying and obtaining new business opportunities, and to manage regulatory matters, including obtaining security clearances, future market conditions for IPTV and economic conditions in China and Asia generally, as well as risk factors identified in its latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. The Company is in a period of significant transition and in the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this release are based upon information available to the Company as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statement.

SOURCE UTStarcom, Inc.