Brasil Telecom Launches First IPTV Service With UTStarcom's RollingStream System

ALAMEDA, Calif., Dec. 10 -- UTStarcom, Inc. (NASDAQ:UTSI) , a global leader in IP-based, end-to-end networking solutions and services, today announced its first IPTV win in Latin America for its industry-leading RollingStream(TM) end-to-end IPTV solution with the launch of Brasil Telecom's Videon IPTV service. This is the telecom operator's first video offering to its customers.

Brasil Telecom, one of Brazil's leading wireless and fixed-line communications providers, has deployed UTStarcom's RollingStream solution as the sole end-to-end technology platform for its new Videon video-on-demand (VOD) IPTV service in Brasilia with plans to expand the service to additional cities in the country's South and Midwest regions in the coming months. In addition to supporting the current subscriber base in Brasilia, the RollingStream system designed for Brasil Telecom maintains an additional capacity of 50,000 subscribers for the expansion.

"As one of the largest broadband providers in Brazil, we see IPTV as an opportunity to use our extensive IP network to provide our customers with broadcast quality, on-demand entertainment services" said Carlos Watanabe, business development director at Brasil Telecom. "Utilizing UTStarcom's RollingStream, Brasil Telecom can now offer the best on-demand entertainment experience. The launch of a VoD, IPTV service is a very important step in our commitment to offer our customers integrated and converged services, such as Video on Demand, pay TV, interactive services, broadband access, and fixed and mobile telephony."

UTStarcom, which currently has over 600,000 live subscribers on its RollingStream IPTV solution globally, has a total deployed subscriber system capacity of over one million subscribers with its commercial IPTV deployments in China with China Netcom and China Telecom; Bharti Airtel and MTNL/Aksh in India and Softbank in Japan.

"IPTV is shaping the video landscape in several global markets and creating new opportunities for service providers to remain profitable in a very competitive telecommunications environment," said David King, senior vice president of sales, marketing and service for UTStarcom, Inc. "The Latin American market is beginning to embrace new video distribution channels and we are excited that we've been able to work closely with Brasil Telecom to advance the country's video offerings and deliver the experiences that consumers are seeking."

For more information on the Videon service, please visit http://www.videon.com.br/.

About Brasil Telecom

Brasil Telecom is the first carrier in Brazil to supply, in an integrated way, all market's demands with convergent solutions in fixed and mobile telephone services, voice and data transmission, national and international long distance services and data center services, as well as free internet and internet access (broadband and dial-up).

The company provides local wire line and mobile telephone services in the Federal District and in the Brazilian states of Acre, Rondonia, Tocantins, Mato Grosso, Mato Grosso do Sul, Goias, Parana, Santa Catarina and Rio Grande do Sul, as well as national and international long distance services all over the country with the code 14.

In addition, Brasil Telecom offers high speed internet access (Turbo), with ADSL technology, (with more than one and a half million users today); 100% broadband internet content through its providers BrTurbo and BrTurbo Empresas and wireless broadband internet access (BrTurbo ASAS), with WiFi technology. Internet providers iG and iBest are also part of Brasil Telecom Group, which makes the company the largest internet provider in Latin America.

Brasil Telecom has over 10.8 million fixed lines installed and the second largest broadband base in Latin America. In less than two years of full commercial operation, the company reached over 4 million customers in mobile telephone services. This performance has granted the company the first position in the international market among all the carriers that were the fourth to enter their respective markets.

  More information is available at http://www.brasiltelecom.com.br/.

  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/.

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 anticipated growth in demand for IPTV in the various regions of Brazil; the rapidly changing nature of IPTV technology and the telecommunications market in Brazil; possible delays in system deployments; the termination of new contracts, partnerships or alliances; and changes in government regulation and licensing requirements in Brazil.

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.