ALAMEDA, Calif., July 6 /PRNewswire-FirstCall/ -- UTStarcom, Inc. , a global leader in IP access networking and services, today announced it has signed a contract with Softbank BB, the leading provider of broadband services in Japan, to expand the existing Gigabit Ethernet Passive Optical Network (GEPON) network in support of the operator's Hikari fiber broadband service.

(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO )

"UTStarcom's GEPON technology enables us to offer our subscribers broadband speeds up to one gigabit per second (Gbps) over optical fiber," said Keiichi Makizono, general manager of technical division at Softbank BB. "Achieving these broadband speeds is another milestone in the successful partnership between UTStarcom and Softbank BB to deliver broadband services to the Japanese market. With more than 18 million broadband users, Japan continues to be the leader in providing the most advanced, cost-effective broadband services in world."

"This contract expands our initial GEPON contract with Softbank announced in October 2004 in support of their Yahoo! BB Hikari Fiber-to-the-Home (FTTH) service," said Michio Nakanishi, president and chief executive officer of UTStarcom Japan K.K. "We believe that GEPON technology is the best means of delivering the speeds and bandwidth necessary for revenue-generating, triple play services such as Television over IP (TVoIP)."

A Complete End-to-End GEPON Solution

Compliant with all IEEE standards, including the IEEE802.3ah standard for Ethernet PON (EPON), UTStarcom's GEPON product family includes a BBS1000 Optical Line Termination system (OLT) for deployment at the Central Office (CO) as well as an Optical Network Unit (ONU) for deployment at the customer's premises. The OLT provides a direct optical interface to the IP core, while the ONU terminates the PON at the customer's premises. Together, the two units complete the end-to-end optical last mile, providing up to one gigabit per second of bandwidth to residential and business customers.

Advanced Layer 2 and Layer 3 switching and routing functionality eliminates the need for carriers to deploy additional network equipment at the metro edge, making GEPON an optimal transport platform for support of bandwidth-intensive triple-play services. Powerful embedded Operation, Administration, and Maintenance (OAM) enable operators to perform flexible provisioning, remote diagnostics and remote system upgrades.

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 http://www.utstar.com/.

Forward-Looking Statements

The foregoing statements regarding, without limitation, the anticipated nature of the relationship between UTStarcom and Softbank BB and features and cost-effectiveness of UTStarcom's GEPON solutions 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 changing nature of Japan's telecommunications market, evolving product and application standards, changes or delays in product introductions and deployments, possible downturns in the markets of Japan generally and worldwide, the termination of significant contracts, partnerships or alliances, specifically with Softbank BB, and other uncertainties, such as changes in government regulation and licensing requirements in Japan. UTStarcom also refers readers to the risk factors identified in its 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.

CONTACT: Chesha Kamieniecki Senior Manager of Investor Relations UTStarcom, Inc. +1-510-749-1560 Andy Tennille Public Relations Associate UTStarcom, Inc. +1-510-749-1212

CONTACT: Chesha Kamieniecki, Senior Manager of Investor Relations,
+1-510-749-1560, or media, Andy Tennille, Public Relations Associate,
+1-510-749-1212, both of UTStarcom, Inc.

Web site: http://www.utstar.com/