Nasdaq Warns UTStarcom

ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services, today announced that, as expected, on August 13, 2007, the Company received an additional Nasdaq Staff Determination Notice stating that the Company has failed to file its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2007, which is a requirement for continued listing set forth in Marketplace Rule 4310(c)(14), and that its securities are, therefore, subject to delisting from the Nasdaq Stock Market. Nasdaq initially informed the Company on November 15, 2006 that its securities would be delisted for failure to timely file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006. The Company was notified again on March 13, 2007 for failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2006, and again on May 16, 2007 regarding the Company's failure to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007.

As previously disclosed, the Nasdaq Listing Qualifications Panel (the"Panel") granted the Company a conditional extension for continued listing on April 17, 2007. On May 14, 2007, the Nasdaq Listing and Hearing Review Council (the "Listing Council") called the Panel's April 17, 2007 decision for review and determined to stay any decision to suspend the Company's securities pending further action by the Listing Council. The Company expects that its securities will remain listed during the Listing Council's review, which is ongoing, until the Listing Council makes a final determination. There can be no assurance that the Listing Council will grant the Company's request for additional time to comply with its filing obligation.

UTStarcom Inc. (Nasdaq: UTSI)