UTStarcom Announces Plans for a Cash Tender Offer for up to US$30 Million of its Outstanding Ordinary Shares and Plans for a

 UTStarcom Announces Plans for a Cash Tender Offer for up to US$30 Million of
     its Outstanding Ordinary Shares and Plans for a Reverse Share Split

PR Newswire

BEIJING, Nov. 19, 2012

BEIJING, Nov. 19, 2012 /PRNewswire/ -- UTStarcom Holdings Corp. (Nasdaq:
UTSI)("UTStarcom" or the "Company"), a leading provider of media operational
support services and broadband equipment products and services, today
announced two significant actions to enhance liquidity.

The Board of Directors has authorized the commencement of a cash tender offer
for US$30 million of the Company's outstanding ordinary shares at a purchase
price of US$1.20 per share. The Company intends to commence the tender offer
by December 7, 2012. The Board of Directors has also authorized the Company
to obtain required shareholder and other approvals and prepare and file the
necessary documents to effect, promptly following the closing of the tender
offer, a 3-for-1 reverse split of its outstanding and authorized ordinary
shares. It is currently anticipated that these actions will be completed by
the end of the first quarter of 2013.

William Wong, UTStarcom's Chief Executive Officer, stated, "We believe that
both of these actions will enhance shareholder value in the near- and also
long-term. We remain very confident in our ability to grow and diversify the
business through our recently announced new strategic plan. We are pleased
that our strong balance sheet and financial position allows us to demonstrate
confidence in our future prospects and enhance shareholder value via a tender
offer and a reverse share split without impacting our ability to execute the
plans for our strategic business transformation. In particular, the tender
offer will afford liquidity to tendering shareholders and the reverse share
split is expected to immediately result in an increased share price which we
expect will make UTStarcom more appealing to a broader set of long-term
investors and support improved liquidity and marketability."

The tender offer will permit tendering shareholders to have their shares
repurchased at a 52% premium over the closing price per share of US$0.79 on
November 16, 2012, the last full trading day before the date of this
announcement. Shareholders who elect not to tender their shares in the offer
will increase their relative percentage ownership in the Company following
completion of the offer. UTStarcom's directors and executive officers have
advised UTStarcom that they do not intend to tender their shares in the tender
offer.

Following the completion of the tender offer, the Company will distribute to
shareholders a proposal for the reverse share split. The proposed 3-for-1
reverse share split is subject to the approval of UTStarcom's shareholders.
The Company therefore will hold a special meeting of shareholders, at which
time it will seek such approval. Timing and the details of the special
meeting will be communicated at a later date. UTStarcom currently expects the
reverse split to be completed by the end of the first quarter of 2013.

When the proposed reverse share split becomes effective, every three
outstanding and authorized ordinary shares of UTStarcom as of the effective
date will be automatically combined into one issued and outstanding ordinary
share. This will reduce the number of outstanding ordinary shares from
approximately 118.7 million (assuming $30 million of shares are repurchased at
$1.20 per share on the tender offer) to approximately 39.6 million.

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 at http://www.utstar.com.

Forward-Looking Statements

This press release includes forward-looking statements, including statements
regarding the Company's plans to commence a tender offer and reverse share
split, the timing of the tender offer and reverse share split, the
expectations regarding the benefits of the tender offer and reverse share
split and the ability to grow and diversify the Company's business through its
strategic plan and the effect of the tender offer on such plans. 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, the Company's ability to obtain shareholder approval
for the reverse share split, the Company's ability to realize its anticipated
results and benefits of the tender offer and reverse share split, 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.

Additional Information and Where to Find It

This release does not constitute an offer to buy or the solicitation of an
offer to sell ordinary shares of UTStarcom. The tender offer will be made
only pursuant to an offer to purchase, letter of transmittal and related
materials that UTStarcom intends to distribute to its shareholders and file
with the Securities and Exchange Commission. Shareholders and investors
should read carefully the offer to purchase, letter of transmittal and related
materials because they will contain important information, including the
various terms of, and conditions to, the tender offer. Shareholders and
investors will be able to obtain a free copy of the tender offer statement on
Schedule TO, the offer to purchase, letter of transmittal and other documents
that UTStarcom intends to file with the Securities and Exchange Commission at
the Commission's website at www.sec.gov or by calling the Information Agent
(to be identified at the time the offer is made) for the tender offer.
Shareholders are urged to carefully read these materials prior to making any
decision with respect to the tender offer.

SOURCE UTStarcom, Inc.

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