UTStarcom Selected by Sri Lanka Telecom to Launch IPTV Services on the South Asian Island

Tuesday, June 17th, 2008

ALAMEDA, Calif. — UTStarcom, Inc. (Nasdaq: UTSI) today announced a multi-million dollar contract with Just In Time Holdings Pvt Ltd. to supply its industry-leading RollingStream® end-to-end Internet Protocol TV (IPTV) solution to Sri Lanka Telecom Public Ltd. Co. (SLT), the country’s largest tier-one wireline and incumbent operator.

SLT, a provider of international and domestic voice, Internet, and data services, will use the RollingStream platform to bring IPTV services to its growing customer base throughout Sri Lanka. SLT, with more than 87 percent market share and a wireline subscriber base of more than 1,300,000 customers, expects to grow its residential and commercial business through its increased triple play capabilities now available with this IPTV deployment.

“UTStarcom’s market position is unique in that it primarily offers ‘end-to-end’ IPTV solutions,” noted Gary Schultz, president of MRG, Inc., which publishes the semi-annual IPTV Global Market Leader Report that tracks deployments in six IPTV sub-sectors in Asia, Europe, North America and Rest-of-World. “In terms of the total number of actual IPTV sub-sectors — and subscribers — served, UTStarcom is the leading end-to-end supplier in the Asian IPTV market. IPTV, as an application-enabler, continues to open up new opportunities for revenue generation for service providers. MRG forecasts global IPTV network capital expenditure (CAPEX) to grow at a 16 percent Compound Annual Growth Rate (CAGR) over the next few years, as service providers provision differentiated service offerings to further their competitive edge.”

SLT’s IPTV deployment is designed to support approximately 100,000 subscribers in the next two years and will enable the company to provide video services to future subscribers over copper lines in the next three to four years.

“Sri Lanka Telecom is well-known in the region as a tier-one communications provider and is credited with establishing several industry firsts in the country,” said Vijay Yadav, managing director for UTStarcom in South Asia. “UTStarcom is looking forward to the opportunities our relationship with Sri Lanka Telecom will present in the region and we are committed to providing the operator with a competitive IPTV solution that will extend SLT’s strides and solidify Sri Lanka as a major telecom hub in South Asia.”