China Netcom Picks UTStarcom IP-DSLAM

ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a leading global provider of wireless and wireline access and IP switching solutions, today announced that it has been awarded its second major IP-DSLAM contract with China Netcom Corporation (CNC) to deploy over 100,000 lines of its AN-2000 IB(TM) IP-based DSLAM solution in ten major cities in the Inner Mongolia, Shandong, and Shanxi Provinces. This contract follows on the heels of its first DSLAM win with China Netcom announced in March 2003.

Today's contract brings UTStarcom's total IP-DSLAM deployments to more than 500,000 ADSL lines within multiple provinces in China.

"We believe that these contracts clearly affirm a decisive move in emerging broadband markets, where major service providers are choosing IP- based DSLAM solutions over existing legacy ATM-based systems to provide customers with a triple play of advanced voice, video, and data services," said Ying Wu, president and chief executive officer of UTStarcom China. "As the leader in IP-DSLAM deployments worldwide, UTStarcom enjoys significant first-mover advantage with economies of scale and technology and deployment expertise."

Carriers can use UTStarcom's AN 2000 IB IP-DSLAM to migrate their access networks seamlessly and economically from narrowband voice-only services to full broadband capabilities. The company's platform enables carriers to generate additional revenue by offering customers the triple play of data, voice, and video services over a single copper loop. The AN-2000 IB is economical to deploy, eliminating the need for a costly ATM infrastructure and giving carriers a faster return on their investment.

The AN-2000 IB IP-DSLAM provides IP from the ADSL line card, allowing carriers the ability to deliver multiple high-speed services such as voice-over-IP and video over a backbone network that employs low-cost IP switching and routing. An all-IP network also makes it easier for carriers to support video streaming using technologies such as IP multicast and IP Quality of Service (IP QoS).

UTStarcom Inc.

China Netcom Corp. Ltd.