UTStarcom Does Softswitch Research

ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), today announced that China's Ministry of Science and Technology has selected the company among several vendors to conduct research into IP softswitch technology. China's goal is to promote a world-leading softswitch standard that provides huge cost efficiencies by supporting all-IP communications over both wireline and wireless networks. The research project includes in-depth technical evaluations and comparisons of a variety of new and existing softswitch technologies. The Ministry assessed several vendors before appointing UTStarcom, which Infonetics Research has named as the world's leading vendor of softswitch solutions, accounting for 59 percent of all ports shipped in the third quarter of 2002. "The research project will help China move straight to a completely integrated, cost-effective, all-IP infrastructure, leapfrogging today's piecemeal approach to building separate systems for wireline and wireless services," said Ying Wu, CEO of UTStarcom China. "With its innovative IP-based mSwitch(TM) and its in-depth experience in the Chinese market, UTStarcom is uniquely qualified to conduct this research for the Ministry of Science and Technology." In addition, said Wu, "The project will give UTStarcom greater insight into the needs of China and the state of the softswitch market, and thus enhance our competitiveness. The appointment will also be an important reference for Chinese service operators." The Ministry chose UTStarcom to conduct softswitch research because the company's IP-based mSwitch is unique in supporting both multimedia and mobile functions, and because the switch's application orientation helps operators quickly deploy new services. The mSwitch is a cost-effective, flexible, and highly scalable switching infrastructure that supports voice and data services over wireline and wireless networks. Service operators can use the platform to migrate their traditional voice-based TDM networks to next-generation, IP-based packet switching architecture. Because the mSwitch supports a variety of industry standards and protocols, operators can offer a full gamut of revenue-generating services over one platform. In addition, the low price per port of the mSwitch drives down application-per-subscriber costs and increases operator revenue. The softswitch research project is part of China's National High Technology Research and Development Program (863 Program), managed by the Ministry of Science and Technology. The program was launched in March 1996 with the aim of enhancing China's international competitiveness and improving its overall research and development capabilities in high technology. UTStarcom Inc.