UTStarcom Wins in Thailand

ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a leading global provider of wireless and wireline access and IP switching solutions, today announced that it has signed an agreement with Asia Wireless Communication Company (AWC), a subsidiary of TelecomAsia Public Company, to deploy its IP-Based PAS (Personal Access System) (iPAS(TM)) in key business districts in the Bangkok metropolitan area. Further contracts will be awarded to cover other parts of the business and residential areas in Bangkok.

The deal is the first step in a partnership between TelecomAsia and UTStarcom to "re-brand" AWC's existing PCT service, the brand name given to PHS (Personal Handyphone System) in Thailand. AWC has developed a four-part plan to revitalize the PCT business by reducing financial and regulatory constraints, improving overall network coverage, and marketing products and services to attract and retain high-value customers.

"UTStarcom is one of the leading telecommunications equipment providers worldwide," said Adhiruth Thothaveesansuk, acting president of TelecomAsia. "They have the best PHS business know-how in the industry and offer their customers an array of value-added services at an affordable price. We expect this partnership to improve our quality of service and make a faster return on investment, as well as provide strong engineering support for the iPAS service."

Based on its reputation as the best equipment provider for next-generation PHS technology, UTStarcom was selected to rehabilitate the existing network, which covers approximately 1,600 square kilometers of central Bangkok and has more than 600,000 subscribers. AWC will utilize UTStarcom technology to offer its subscribers a number of value-added services, including 64Kbps data service.

"This agreement symbolizes the beginning of a partnership between TelecomAsia, Asian Wireless Communication and UTStarcom to bring high-quality, low-cost fixed-line wireless communications to Thailand," said David Robison, vice president of international sales at UTStarcom. "Not only will UTStarcom work to enhance the existing system with the addition of high-speed data service, but it also presents an opportunity to supply other value-added services, as well as terminal-related equipment, including our entire line of handsets."

"While initial revenues from this contract are anticipated to be approximately $500,000, we believe this could represent approximately $10 million over the next 18 months," Robison added.

UTStarcom Inc.