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UTStarcom Signs Agreement with DDI CORPORATION (KDDI) of Japan Contract to Add H" Link Advanced Data Services to UTStarcom's PASTM Wireless Communications System ALAMEDA, Calif., Nov. 9, 2000 - UTStarcom, Inc. (Nasdaq:UTSI), a provider of wireless and wireline telecommunications access equipment, today announced that it has entered into an agreement with DDI CORPORATION (KDDI), Inc., Japan's second largest communication service provider and a leader in the wireless data market, to combine UTStarcom's PASTM wireless platform designed to deliver voice and value added services with KDDI's H" Link (edge link) of DDI Pocket, Inc. (KDDI's subsidiary providing PHS service in Japan). H" Link is a Web browsing, email, short message and location service technology. The license agreement with KDDI permits UTStarcom to deploy the advanced wireless data services capabilities in Taiwan. The services will be designed to support both traditional and simplified Chinese as well as English. "We believe that our relationship with KDDI will allow us to further extend our presence with our superior products in the mobile personal communications market, " said Hong Lu, President and Chief Executive Officer of UTStarcom. "By incorporating KDDI's H" Link with our PASTM product line we will offer an integrated personal communication and messaging solution that can access the web and deliver wireless voice and data service. In the future, in addition to deployment in Taiwan, we hope to conduct a field trial in Mainland China." Through its PASTM product line, UTStarcom is a leader in wireless personal communications systems in Mainland China. The Company plans to incorporate KDDI's H" Link web access capabilities at the core of its PASTM systems to provide a solution that offers a level of convenience and flexibility unprecedented in consumer personal mobile communications. Due to the high growth in demand for wireless and Internet services, telecom operators are investing heavily in value added services such as location dependent services, email services and information services for mobile handsets and PDAs. About UTStarcom, Inc. UTStarcom designs, sells, manufactures and installs an integrated suite of wireless and wireline network access and switching systems that allow communications service providers to offer efficient and scalable voice, data and Internet access services. The Company's customers are public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world. Current product offerings include: Airstar network access system, which provides voice and data services over city-wide mobile wireless (PASTM) and fixed wireless (WLL) networks; AN-2000, a broadband and narrowband access system for wireline networks; and WACOS, an IP-based SoftSwitch platform designed to deliver multiple voice and data services using a highly distributed architecture. WACOS contains a SoftSwitch call server, a distributed multi-service IP gateway and a full suite of subscriber management, mediation and billing services. The Company manufactures the majority of its products at two ISO9002 certified facilities located in China, and maintains sales and customer support sites throughout Mainland China and in Iselin, NJ; Alameda, CA; Miami, FL; Taipei, Taiwan; Hong Kong; and Tel Aviv, Israel. UTStarcom's research and development facilities are located in the USA and China. UTStarcom was founded in 1991 and is headquartered in Alameda, California. For more information about UTStarcom, visit the Company's website at www.utstar.com. Airstar, PAS, AN-2000, WACOS and the UTStarcom name and logo are trademarks of UTStarcom, Inc. and its subsidiaries. About DDI CORPORATION (KDDI) of Japan DDI CORPORATION (KDDI) was established in 1984 and is currently the second largest telecommunications company in Japan, providing a comprehensive range of voice, data, IP and mobile services to both business customers and consumers. After merging with KDD and IDO in October, 2000, KDDI serves over 15 million long-distance subscribers, 1.4 million internet subscribers, 13 million mobile subscribers, and 3.3 million PHS subscribers. KDDI has 34, 000 km of highly reliable domestic network infrastructure, in addition to optical submarine cable systems such as TPC-5, Japan-US CN and China-US CN. KDDI also works to develop advanced technology in the areas of radio & mobile, lightwave, multimedia, and Internet communications. The KDDI Group consists of 106 companies covering a wide variety of telecommunications-related businesses such as engineering, facility hosting, submarine cable construction, and R&D. It has 125 offices in Japan and 46 abroad providing customers with global support. The main shareholders of KDDI are Kyocera Corporation (15%) and TOYOTA Motor Corporation (13%). For more information about the company and its products, visit the website at www.kddi.com. Forward-Looking Statements The foregoing statements regarding the agreement with DDI CORPORATION (KDDI), Inc.; expectations for future combination, incorporation, distribution, capabilities, development and deployment of products; anticipated demand for UTStarcom's products and for voice, data and value added services generally; and expansion of product offerings and penetration into new geographic markets are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These factors include UTStarcom's ability to ship the combined product in volume, product and technology compatibility, changing demand and market trends, rapidly changing technology, the direction and success of future research and development efforts, evolving product and application standards, potential cancellations, reductions or delays in system deployments or order fulfillment, and uncertainties such as government regulation and demand for and acceptance of UTStarcom's products. The Company also refers readers to the risk factors identified in its Prospectus and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. Company Contacts
Michael J. Sophie
Valerie J. Paul SOURCE: UTStarcom, Inc.
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