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

UTStarcom, Inc.today announced a multi-million dollar contract with Just In
Time Holdings Pvt Ltd. to supply its industry-leading RollingStream(R)
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."

UTStarcom's RollingStream end-to-end IPTV system currently supports
more than 850,000 live IPTV subscribers globally and maintains a total
system capacity exceeding 2.5 million subscribers as a result of recent
successful deployments in China with China Netcom and China Telecom, in
India with Bharti Airtel, MTNL/Aksh and UTL, in Japan with Softbank, in
Latin America with Brasil Telecom and in Taiwan with Markwell.