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UTStarcom Announces New Strategic Plan to Drive Growth and Profitability and Enhance Shareholder Value

 UTStarcom Announces New Strategic Plan to Drive Growth and Profitability and
                          Enhance Shareholder Value

PR Newswire

BEIJING, Nov. 15, 2012

BEIJING, Nov. 15, 2012 /PRNewswire/ -- UTStarcom Holdings Corp. ("UTStarcom"
or the "Company") (Nasdaq: UTSI), a leading provider of media operational
support services and broadband equipment products and services, today
announced a strategic plan to transform UTStarcom into a higher growth, more
profitable business focused on providing next generation media services. The
strategy builds on recently announced initiatives, such as the divestiture of
the IPTV equipment business, acceleration of the media operational support
services business, and appointment of new executive leadership. The new plan
is expected to result in significant overall improvement in UTStarcom's
business performance and the Company anticipates it will lead to accelerated
rates of growth and profit margins.

In a separate press release issued today, the Company also announced unaudited
results for the third quarter ended September 30, 2012.

New Strategic Plan

UTStarcom's new strategic plan will build on the Company's past transition
initiatives and transform it into a higher growth, more profitable business
focused on media operational support services and broadband equipment products
and services. UTStarcom aims to become a next generation media company and
participate in new and higher-margin business areas where it has the potential
to become the top one or two service providers.

William Wong, UTStarcom's Chief Executive Officer, stated, "The strategic plan
we are announcing today stems from the new management team's close
collaboration with the Board of Directors to identify the most appropriate
ways to accelerate revenue growth, bolster profit margins, improve operational
cash flow, generate a more predictable, subscriber-based recurring revenue
stream and increase shareholder value."

"Further, this is the next major initiative for us in a series of steps we are
taking to truly transform the Company, including divesting the underperforming
IPTV equipment business, investing in aioTV, hiring a new Chief Financial
Officer, and adding new independent directors to our Board. Our overarching
intention is to leverage our extensive experience, technical expertise, and
customer relationships while repositioning the Company for long-term growth by
tapping into major shifts in behavior and technologies that will change the
way people consume entertainment for generations to come."

There are recent trends in how people consume entertainment via multi-screens
as well as customized viewing driven by consumers seeking a "pull" approach to
TV. This has led to the phenomena of "cord cutting" as viewers give up their
cable and television services in favor of largely Internet-based content
platforms that allow them to select videos and entertainment on their own
terms. UTStarcom intends to become a leader in providing next generation media
services that will meet the critical needs of its key customers – cable and
broadband service providers – as they look to offer a more personalized
entertainment experience and build up their own customer base.

In order to be well-placed to evolve and meet this market demand, the Company
has identified three primary strategies. The Company will:

  oDeploy a TV over IP Services Platform: UTStarcom will build a major
    business line around TV over IP services, which offer some of the
    fastest-growing and highest-margin opportunities in the marketplace.
    Through TV over IP services, UTStarcom will aim to be a leading provider
    of high-in-demand digital content, such as local content, premium licensed
    content, and other value-added services over a variety of platforms to the
    mainstream consumers. UTStarcom will offer a Cloud based, integrated
    platform to support the entire workflow of broadband and cable service
    providers' TV over IP operations, such as encoding and transcoding,
    program planning, media distribution, content publication, and product
    management.
  oPursue Internal Product Development and Strategic Acquisitions to Build
    Out New Services: UTStarcom will leverage its strong technical expertise
    to develop solutions in-house that will support the new TV over IP
    platform. Importantly, the Company will also seek to acquire or take
    significant stakes in companies that have market-leading technology that
    UTStarcom can use to augment its services platform and then deploy
    commercially, quickly and efficiently.
  oDesign an Optimal Operating Structure to Maximize the Potential of
    Business Units and Foster Innovation, Collaboration and Efficiency:
    UTStarcom will structure its business in a way that aggregates and
    maximizes the potential of its existing and to-expand business units by
    providing them the flexibility to pursue opportunities while also aligning
    their interests with broader corporate goals and those of shareholders.
    The Company will also aim to maximize efficiency in operations and
    minimize fixed costs in order to keep the underlying business strong.

The Company expects the adoption of this new strategic plan will in time
result in a more predictable, recurring revenue stream based on an array of
sources, including subscription fees, platform licensing fees, and fees on
value-added services as well as higher margins due to the increased
profitability of these revenues. UTStarcom will be focusing its growth efforts
in China and across Asia and based on current plans, the Company expects to
invest in and launch its TV over IP services in multiple countries during
2013. The Company anticipates revenue from the new TV over IP services to
become the majority revenue contributor for UTStarcom by 2015, with gross
margins in that line of the business exceeding 50% in that same timeframe.

Importantly, UTStarcom is embarking on these plans from a position of
strength. With total cash of $213.1 million as of September 30, 2012, the
Company has sufficient capital to fund these strategies. The Company will also
leverage its established relationships with broadband and cable service
providers as well as its in-house technical expertise to guide product
development and identify and pursue acquisition and investment targets in an
effort to execute its strategic plan and meet overall long-term targets.

Mr. Wong concluded, "We are confident that our new strategy will take us in
the direction in which the market itself is moving and positions us well to
capitalize on developing new media opportunities. We are moving aggressively
to implement our strategies and while full traction will take time to develop,
we are confident that our success will ultimately result in profitable,
sustained growth and improved value for our shareholders. We are excited by
what is in front of us and look forward to updating our customers, employees
and investors as we achieve new milestones."

Conference Call Details

UTStarcom's management will host an earnings conference call at 7:30 a.m. U.S.
Eastern Time on Wednesday November 15, 2012 (8:30 p.m. Beijing/Hong Kong Time
on November 15, 2012).

The conference call dial-in numbers are as follows:

United States: + 1-800-860-2442

International: + 1-412-858-4600

China: 10-800-712-2304

Hong Kong: 800-962475

The conference ID number is 10021309.

A replay of the call will be available one hour after the end of the
conference until 9:00 a.m. U.S. Eastern Time on November 23, 2012.

The conference call replay numbers are as follows:

United States: + 1-877-344-7529

International: + 1-412-317-0088

The conference ID number for accessing the recording is 10021309.

Investors will also have the opportunity to listen to the live conference call
and the replay over the Internet through the investor relations section of
UTStarcom's web site at: http://www.utstar.com.

About UTStarcom Holdings Corp.

UTStarcom is focused on providing next generation media operational support
services in the rapidly growing markets for TV over IP services and broadband
equipment products and services. UTStarcom is committed to meeting the
evolving needs of cable and broadband service providers to enable a more
personalized entertainment experience. The Company sells its media operational
support services and broadband equipment products and services to operators in
both emerging and established broadband and cable markets around the world.

UTStarcom was founded in 1991 and has traded on the NASDAQ since 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 website athttp://www.utstar.com.

Forward-Looking Statements

This press release includes forward-looking statements, including statements
regarding the Company's expectations relating to the deployment and growth its
operational support services business. These statements are forward-looking in
nature and subject to risks and uncertainties that may cause actual results to
differ materially and adversely from the Company's current expectations. These
include risks and uncertainties related to, among other things, changes in the
financial condition and cash position of the Company, changes in the
composition of the Company's management and their effect on the Company, the
Company's ability to realize anticipated results of operational improvements
and benefits of the divestiture transaction, the ability to successfully
identify and acquire appropriate technologies and businesses for inorganic
growth and to integrate such acquisitions, the ability to internally innovate
and develop new products, assumptions the Company makes regarding the growth
of the market and the success of the Company's offerings in the market, and
the Company's ability to execute its business plan and manage regulatory
matters.  The risks and uncertainties also include the risk factors
identified in the Company's latest Annual Report on Form 20-F and Current
Reports on Form 6-K, as filed with the Securities and Exchange Commission. The
Company is in a period of transition and the conduct of its business is
exposed to additional risks as a result. All forward-looking statements
included in this press release are based upon information available to the
Company as of the date of this press release, which may change, and UTStarcom
assumes no obligation to update any such forward-looking statement.

SOURCE UTStarcom, Inc.

Website: http://www.utstar.com
Contact: /CONTACT: UTStarcom Holdings Corp., Ms. Jing Ou-Yang,
+86-10-8520-5153, jouyang@utstar.com ; FTI Consulting, Inc., Ms. May Shen
(Beijing), +86-10-8591-1951, May.Shen@fticonsulting.com ; Mr. Daniel DelRe
(Hong Kong), +852-3768-4547, Daniel.DelRe@fticonsulting.com ; Mr. Eric
Boyriven (New York), +1-212-850-5671, Eric.Boyriven@fticonsulting.com /
 
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