UTStarcom Faces Nasdaq Delisting

UTStarcom receives delisting notification from Nasdaq for failing to file its Form 10-K annual report for 2005

March 23, 2006

1 Min Read

ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), announced today that on March 20, 2006, it received a notice from the staff of The Nasdaq Stock Market indicating that the Company is not in compliance with Marketplace Rule 4310(c) (14) because it has not yet filed its Annual Report on Form 10-K for the year ended December 31, 2005 (the "2005 Form 10-K"). The notice indicated that due to such noncompliance, the Company's common stock will be delisted at the opening of business on March 29, 2006 unless the Company requests a hearing in accordance with the Nasdaq Marketplace Rules.

The Company intends to request a hearing before a Nasdaq Listing Qualifications Panel (the "Panel") to review the Nasdaq staff's determination. The hearing request will stay the delisting of the Company's common stock pending the Panel's decision. There can be no assurance that the Panel will grant the Company's request for continued listing.

As previously announced, the delay in filing the 2005 Form 10-K is due to the Company needing additional time (i) to enable the Audit Committee of the Board of Directors of the Company to complete an investigation with regard to the circumstances surrounding the premature recognition of revenue on a contract with a customer in India and certain other transactions and (ii) for management to complete the preparation of its 2005 consolidated financial statements and its assessment as of December 31, 2005 of the Company's internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002. The Company currently anticipates filing the 2005 Form 10-K on or about April 30, 2006.

UTStarcom Inc. (Nasdaq: UTSI)

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