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CTIA WIRELESS 2005, New Orleans, March 14, 2005 /PRNewswire-FirstCall via COMTEX/ -- UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based end-to-end networking solutions and services, today launched its global handset strategy, strengthening the company's market position in the worldwide wireless market. UTStarcom can now provide its global customers with complete wireless solutions -- including both infrastructure and handsets -- for Personal Access System (PAS), CDMA, and 3G networks. As a part of its strategy, the company is also expanding into new applications and markets with its Wireless LAN (WiFi) and dual-mode handsets.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO )
Leveraging its history of IP innovation, global R&D expertise, China-based manufacturing operations, and mature sales and distribution channels, UTStarcom can offer its carrier customers a complete portfolio of IP-based wireless solutions. The company's worldwide handset strategy includes the following elements:
-- Enable carriers to purchase handsets both as standalone products and as part of a comprehensive IP wireless infrastructure solution;
-- Lower carriers' handset costs by leveraging UTStarcom's high-quality, high-volume, low-cost manufacturing capability; and
-- Provide carriers with a wide variety of features, styles, and price points across a range of low-end to high-end handset models.
CDMA Handsets Part of New Strategy
As a part of its handset strategy, UTStarcom today announced its CDMA 7000 Series, the company's first internally designed and manufactured CDMA handsets for the North American and Latin American markets. UTStarcom's Personal Communications division (UTPC) (formerly Audiovox) will market and distribute these handsets.
UTStarcom will exhibit its new CDMA 7000 series handsets, along with its complete wireless handset product line, in the UTPC booth, located in Hall E, booth #4045. The company will exhibit its wireless infrastructure product family in UTStarcom's corporate booth in Hall C, #2518.
(For more information on UTStarcom's CDMA 7000 series handsets, please see today's announcement "UTStarcom Launches the CDM-7000 CDMA Handset Series - Its First Wireless Handsets Designed and Manufactured for North America.")
"UTStarcom has gained significant expertise over the last seven years manufacturing and deploying our PAS handsets and infrastructure in China," said Hong Lu, president and chief executive officer at UTStarcom. "Now we have combined our successful low-cost, high-volume manufacturing operations in China with innovative handset R&D to expand our portfolio to include CDMA, GSM, 3G, WiFi, and dual-mode handsets. We can thus offer complete carrier-to-consumer bundles of our IP-based solutions to service providers worldwide and deepen our carrier relationships by bringing greater economies of scale for our customers and improving their overall margins."
"UTStarcom's CDMA, GSM, and 3G handsets, as well as other models supplied through manufacturing partnerships, give the UTPC division a strong portfolio for its well-established sales and distribution channels," said Philip Christopher, president of UTStarcom Personal Communications. "We will offer our carrier customers around the world a variety of choices that span the entire handset spectrum of access technologies, features, and price points."
Multi-Access Handset Strategy Complements Wireless Infrastructure Solutions
Last March, UTStarcom announced its expanded global wireless strategy to deliver end-to-end, wireless solutions for operators with any type of access, spectrum licensing, frequency spectrum, or user demographics. Today's handset strategy announcement fulfills the last component of that strategy by supporting a full range of handset models for CDMA, GSM, 3G, and PAS networks.
In 2004, UTStarcom introduced a complete line of CDMA infrastructure solutions with its 3G MovingMedia product family, along with initial contracts with global carriers. The company now offers internally designed and manufactured CDMA handsets that enable an end-to-end UTStarcom carrier-to-consumer solution.
In addition, UTStarcom completed its 3G WCDMA field trials in China with high marks from the Ministry of Information (MII) and believes that it will be well positioned when 3G licensing is announced, which the company expects to occur in the second half of 2005. The company is currently developing 3G WCDMA handsets for the China market, once again supporting a full carrier-to-consumer solution.
Finally, UTStarcom is developing GSM handsets for Europe, India, Asia and North and South America.
Mobility Innovation for the Future: WiFi and Dual-Mode Handsets
Beyond CDMA and GSM, UTStarcom is developing new handset solutions that are revolutionizing the communications marketplace. In March 2004, the company launched the UT818, its first dual-mode PAS/GSM handset. PAS subscribers who travel outside of their service area now can make and receive calls on surrounding GSM networks. In January 2005, UTStarcom unveiled its F1000 WiFi handset, the first WiFi handset targeted for the residential market. Vonage will begin deploying the F1000 to its subscribers in the spring/summer of 2005.
The company is also currently developing dual-mode handsets that offer further convergence of wireless standards, including WiFi/CDMA and WiFi/GSM handsets as well as WCDMA/PAS handsets for subscribers in China. In the future, UTStarcom plans to offer TD-CDMA handsets with dual-mode capabilities such as CDMA and GSM to complement its existing 3G TD-CDMA infrastructure solution for wireless broadband.
Leveraging Proven High-Volume Design and Manufacturing Capabilities
As the leading PAS handset manufacturer in China, UTStarcom shipped more than 30 million handsets over the last two years and amassed more than 55 percent marketshare. More than 60 percent of UTStarcom's handset components are supplied locally or regionally in Asia, greatly reducing operational complexity and enhancing material cost control. All handset manufacturing operations are ISO9000 certified for quality control. UTStarcom is leveraging these manufacturing facilities and suppliers in the production of its broader handset offerings.
UTStarcom believes its experience in high-volume, low-cost handset manufacturing is complemented by its innovative handset designs led by R&D centers based in Shanghai and Hangzhou, China; Seoul, Korea; Vancouver, Canada; Chicago, Illinois; and Iselin, New Jersey. UTStarcom PAS handsets have consistently proven to be among the best in the competitive Chinese telecom market. In 2004, two UTStarcom models were ranked as the two top-selling PAS handsets in China, while eight of the top ten were also UTStarcom-designed and -manufactured handsets.
UTStarcom is also working closely with both QUALCOMM Incorporated and Toshiba Corporation's Mobile Communications Company on CDMA handset R&D.
Well-Established Channel with Long-Standing Carrier Relationships
UTStarcom's Personal Communications division (UTPC) provides the company with a comprehensive sales, service, and support platform, as well as key relationships with top-tier CDMA operators, particularly in North and South America. UTPC is the only handset provider to sell to every CDMA carrier in North America and has established relationships with Tier 1 operators such as Verizon Wireless, Sprint PCS, ALLTEL, US Cellular, Bell Mobility, Telus, BellSouth International, Telefonica, Virgin Mobile, and MetroPCS.
UTPC shipped more than 1.5 million units in November and December 2004 and accounted for more than $250 million in sales in the fourth quarter of 2004. The division introduced several new handset models in the fourth quarter, including the CDM-8940, UTStarcom's first 3G EV-DO handset for the U.S. market. This new handset will be sold by the company's largest U.S. customer, Verizon.
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 wireline, wireless, optical and switching solutions to operators in both fast growth 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 New Jersey, China, and India. UTStarcom is a FORTUNE 1000 company.
For more information about UTStarcom, visit the company's Web site at www.utstar.com.
Forward-Looking Statements
The foregoing statements regarding, without limitation, the offering and deployment of UTStarcom's products, UTStarcom's market position in the worldwide wireless market, the ability of UTStarcom to deepen carrier relationships, the ability of UTStarcom to bring greater economics of scale to and improve the overall margins of its customers and to lower carriers' handset costs and UTStarcom's positioning for, and the expected timing of announcements of, 3G licensing in China 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, possible downturns in the telecommunications market in China and worldwide, the termination of contracts, partnerships or alliances, and other uncertainties such as changes in governmental regulation or licensing requirements and economic and political stability in China and worldwide. 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.
SOURCE UTStarcom, Inc.
Chesha Kamieniecki, Senior Manager of Investor Relations of UTStarcom, Inc., +1-510-749-1560; or press, Stephanie Gallagher of Engage PR, +1-510-748-8200, ext. 213, or stephanie@engagepr.com, for UTStarcom Inc.
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