ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP access networking and services, today announced that it has won a contract with China Telecom Corporation (CTC) to deploy 220,000 lines of its AN-2000 IB IP-DSLAM solution. This contract follows a recent contract with CTC for a deployment of 200,000 lines in select provinces throughout China.

"This contract reconfirms China Telecom's confidence in UTStarcom and our DSLAM solutions. UTStarcom is a which are a worldwide leader for pure IP- DSLAM deployments," said Jack Wu, vice president of broadband, optical and switching for UTStarcom China. "UTStarcom will partner with China Telecom to deliver superior ADSL broadband services to an additional 220,000 subscribers, and plans to build on this successful partnership throughout 2004."

The deployment of these IP-DSLAM lines highlights a shift for China from ATM-based to IP-based DSLAM networks and a movement from narrowband to broadband, a major trend in China's wireline market. According to BDA, a leading Chinese industry research group, total broadband users in China have more than doubled in 2003, from five million to nearly 12 million users. In addition, the number of IP-DSLAM lines as a percentage of total DSLAM lines deployed in 2003 was approximately 15 percent, a significant increase from 2002. UTStarcom expects this percentage to increase to nearly 50 percent in 2004.

UTStarcom Inc.

China Telecommunications Corp.