UTStarcom Wins Honduras

ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services, today announced a contract with MultiFon, the first private telephone company in Honduras, to expand the operator's IP-based Personal Access System (iPAS(TM)) networks in Honduras. MultiFon operates the second largest fixed-line telephone network in all of Honduras.

"The ability to quickly and easily deploy fixed wireless services was the key for choosing UTStarcom's iPAS technology for MultiFon", said Jose Luis Rivera, executive director of MultiFon. "Less than 10 percent of the nearly seven million people in Honduras have a viable means of communication, making it one of the least developed telecommunication markets in Latin America. UTStarcom's iPAS solution has allowed us to offer cost-effective voice services to users that have been waiting for years to have basic telephone services."

MultiFon, a local subsidiary of MultiData Group, launched its iPAS wireless telephone network in June 2004 with a 50,000-subscriber network capacity. The network expansion aims at covering seven of the largest cities in Honduras with the goal of achieving an installed base of 92,000 subscribers in the country.

"UTStarcom has built its success by offering technologies that bring higher value to emerging telecommunications markets and through customizing the applications according to the specific need of its clients. With a scalable IP-based technology, UTStarcom satisfied Honduras' demand for a simple and cost-effective solution while maintaining the ability to add new subscribers as the user base of MultiFon grows," said Julio Larios, general manager of UTStarcom Honduras. "The MultiFon network was the first of 19 private companies that were created based on the 'Telephony for All' initiative and is the leader in offering fast, cost-effective access to fixed-wireless services that consumers in Honduras can trust."

UTStarcom Inc. (Nasdaq: UTSI)