ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a leading global provider of wireless and wireline access and IP switching solutions, today announced another exciting milestone as the number of subscribers using its city-wide Personal Access System (PAS(TM)) in China exceeded the 15 million mark. In fact, in August alone, there were more than 1.5 million PAS subscriber additions on UTStarcom's networks-an all-time record.

"This surge in subscriber numbers validates the increasing consumer demand for robust wireless solutions that are both convenient and affordable," said Ying Wu, chief executive officer of UTStarcom China. "We further believe that both China Telecom and China Netcom continue to aggressively deploy PAS because it has proven to be the quickest and most profitable way to bring service to their consumers. UTStarcom is very satisfied with the enormous success of PAS in China and believes that this success can be replicated in many countries throughout the world."

Since its initial launch in January 1999, PAS subscriber numbers have grown from 4,000 in just one city, to being widely adopted throughout Mainland China. In the first half of 2003, PAS accounted for over 40 percent of all the fixed-line subscriber additions in all of China. PAS subscriber numbers are estimated to reach 30 million by the end of 2003 as compared to 12 million at the end of 2002.

UTStarcom Inc.