UTStarcom's RollingStream IPTV Solution Continues to Build Momentum With Third Contract Awarded in Asia by Markwell in Taiwan

Thursday, December 20th, 2007

ALAMEDA, Calif., — UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services, today announced that it has signed a contract with Markwell Industrial Co., Ltd. to deploy its industry-leading RollingStream™ end-to-end IPTV solution in Taiwan.

Markwell, a provider of cable, content and Internet services — including co-location, virtual hosting, security monitoring, education training, and online shopping — will utilize the end-to-end RollingStream system to deploy IPTV-enabled triple play services throughout Taiwan.

“UTStarcom’s RollingStream IPTV solution is a field-proven platform for the delivery of IP-based television services as well as a comprehensive host of converged communication and entertainment applications that today’s generation of Internet-savvy subscribers demand,” said Richard Lai, chairman and chief executive officer at Markwell Industrial Co., Ltd. “We are currently in discussions with a number of cable operators in Taiwan who are interested in complementing their existing offering with IPTV-enabled services, and we anticipate surpassing more than one million IPTV subscribers in the country by 2009.”

“Despite competition from the incumbent cable operators, we expect the additional value-added applications enabled by IPTV will make it a success in Taiwan,” said David King, senior vice president of sales, marketing and service for UTStarcom, Inc. “By coupling IPTV service with Video-on-Demand, Voice-over-IP and high-speed Internet access, telecom operators around the world are opening up new revenue streams not previously accessible and enhancing their ability to retain subscribers in a highly competitive landscape.”

The Markwell contract includes system capacity for 500,000 RollingStream IPTV subscribers and 20,000 set-top boxes initially. Markwell plans to deploy an additional 480,000 RollingStream set-top boxes over the next two years.