Corporate Presentation

NASDAQ: UTSI

December 2011

Disclosure & Forward Looking Statements

2

This investor presentation contains forward-looking statements, including statements regarding the Company's strategy to reduce operating expenses, ability to achieve profitability, investment in selective products and certain geographic regions, diversification of business and customer base, transition to a new business model and anticipated or assumed future financial results. Forward-looking statements are based on current expectations, estimates, forecasts and projections about the Company, the Company’s future performance and the industries in which the Company operates as well as on the Company management's assumptions and beliefs.

These forward-looking statements are only predictions and are subject to risks and uncertainties related to, among other things, the ability of the Company to realize anticipated results of operational improvements, increase bookings, successfully transition to a new management team and headquarters location and execute on its business plan, as well as risk factors identified in its latest Annual Report on Form 10-K, as amended, Quarterly Reports on Form 6K and 10-Q and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. Therefore, actual results could differ materially and adversely from the Company's current expectations. We undertake no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this investor presentation.

The Company is in a period of significant transition and in the conduct of its business is exposed to additional risks as a result. This investor presentation also includes financial guidance and information about the Company previously disclosed during the Company's 2009, 2010 and 2011 earnings conference calls, restructuring announcements on December 18, 2008 and November 9, 2009 and other filings with the Securities and Exchange Commission. Such guidance and information reflects the Company’s information and expectations as of those dates and this presentation is not intended to confirm or update that information and expectations.

Agenda

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Corporate Overview1

Financial Overview and Outlook

Market Dynamics & Growth Strategy2

3

CORPORATE OVERVIEW

Company Introduction

5

A leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and Broadband for cable and telecom operators

Technology and services expand and help modernize communications networks, giving operator customers the capability to provide their subscribers with interactive communications experiences while opening up increased revenue opportunities for operator clients

The new service business represents a “business model innovation” that leverages UTStarcom’s current core technology and management background to generate more recurring, higher margin returns.

Share Price: $1.37 (as of December 9, 2011)Shares Outstanding: 155.4 mMarket Cap: $212.9 m (as of December 9, 2011) Legal Counsel: Wilson Sonsini Goodrich & RosatiAuditors: Price Waterhouse

Investment Highlights

6

Focused on achieving breakeven in 2011

Strong existing relationships with leading telecom, cable and media players in China and across the rest of Asia

Well positioned to benefit from China’s Three Network Convergence policy and development

Diversifying business model into high-margin new service business (“Operation Support Business”) with recurring revenues

Diversifying customer base to broaden profit opportunities

Strong cash position and no debt

Our Positioning and Growth Strategy

7

• Enables focus on Chinese and Asian markets

• Leverage Three Network Convergence (TNC) policy in China

• Senior management close to client decision-makers

• Improved internal communication & lower costs

• Core IP technology applied across different networks

• Strong competitive edge and opportunity with both telecom and cable operator

A leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and

Broadband to cable and telecom operators

Strategy 1: Return to China

• Demand for interactive services creates opportunity for equipment AND services revenues with higher margin earnings

• New service business model moves UTStarcom up the value chain and closer to interactive TV operators

Our existing telecommunication equipment products, RollingStream technology and sales channels are the foundation of new service business, which taps a

major opportunity in video content services over the broadband network and internet.

Strategy 2: Telecom and Cable in Parallel

Strategy 3: Equipment AND Service

RollingStream Technology

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SOLUTION AND VALUE TO CUSTOMER

PRODUCTS OR SERVICE PROVIDED TARGET CUSTOMERS

RollingStream® Technology: provides customers market -leading interactive TV solutions

RollingStream enables operators to provide IPTV, iDTV, Internet TV, mobileTV, video information and other industrial applications. Hardware includes:

Infrastructure

Components:

Terminals:

1.Telecom operators

2. Cable operators

3. TV stations and content license holders who, in China, run broadcast control platforms

Video Storage and Streaming Servers OSS

IP STB Dual-mode STB

Broadband and NGN Solutions

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SOLUTION AND VALUE TO CUSTOMER

PRODUCTS OR SERVICE PROVIDED

TARGET CUSTOMER

Broadband Solution: provides high bandwidth network infrastructure for communications networks

• PTN

• MSTP

• G/E-PON

1.Telecom operators

2. Cable operators

NGN Solution:Provides a multi-service IP-based soft switch system for voice, data, mobile and multimedia operations

1.Telecom operators

2. Cable operators

Call server Media Gateway

BBS 4000 ONU

NetRing 4K

TN725

NetRing2500

TN705

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Leading Market Position China

Focus Area UTStarcom’s Achievements

Interactive Television

(including IPTV, iDTV & Internet TV)

Currently leading IPTV market share in China Contracts won from both cable and telecom operators in Zhejiang,

Fujian, Anhui and Shenzhen to expand IPTV system Won 10 contracts with city level cable operators for iDTV Built 6 IPTV Broadcast Control Platforms out of 12 TNC pilot cities Will launch Internet TV platform through Stage Smart acquisition in

the first half of 2011

TNC Broadband Infrastructure

Launched EPON fiber access projects in 10 regional cable markets Won China’s first PTN contract for Cable MSO in Sichuan province

Smart Grid Approved as a qualified EPON supplier for China State Grid Company

The first EPON supplier to China’s electricity grid companies and supply EPON product to the provincial Electricity Grid Company in Ningxia

Leading Positioning on APAC Market (I)

UTStarcom Confidential

Market & Focus Area

UTStarcom’s Achievements

South Asia:

Focused on IPTV and Broadband

IPTV: Cooperate with MTNL, BSNL, Bharti, SLT and other leading South

Asia operators to secure our market leading position Exploring a joint venture with local partner in India with better

government relations and local market support to retain and extend leading position in IPTV sector

Successfully launched GEPON project with BSNL Received the first Purchase Order of IPTV systems from TOT in

Thailand in the fourth quarter of 2010

Broadband: Currently have more than 30% market share

Leading Positioning on APAC Market (II)

UTStarcom Confidential

Market & Focus Area

UTStarcom’s Achievements

Japan:

Focused on Broadband

50% of SoftBank Broadband (SBB)’s MSTP transmissions. SBB is currently Japan’s 3rd largest telecom operator

Preferred PTN supplier of next generation IP transmission equipment for SBB

Continue to receive sizable orders of PTN product in year 2011

Taiwan:

Focused on Broadband

Won sizable MSTP and PTN contracts from Chunghwa Telecom

Market Dynamics & Growth Strategy

China’s Three Network Convergence: a growth catalyst for UTStarcom

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Focused on cable / teleco two-way entrance

Pilots concluded and expansion drives ahead

Policy LaunchedPilots Conducted

National Implementation

2010 2010—2012 2013—2015

Equipment Spending & Network Buildout

Media Platform

Spending16%

Set Top Box Sales

28%

Telecom Network Buildout

42%

Cable Network Buildout

14%

Three Network Convergence (TNC) is the Chinese government policy dedicated to integration of telecom, broadband and cable TV networks

Three Network Convergence related market will reach RMB 688B over the next three years, including RMB 249B on equipment and network buildout and RMB 439B from interactive media user demand

Source: iChina Research Center, 2010.4, “Analysis of Market Size, Industry and Region for Three-Network Convergence” and policy directives issued by China’s State Council.

Strategy 2: Parallel Growth Opportunities

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none

4million(iDTV)

<5million

>1 billion

6.7million(IPTV)

>100million

187 million88 million

none

Interactive video services

Interactive video services

Broadband serviceBroadband service

TV and Digital TV service

TV and Digital TV service

Voice servicesVoice services

<25% 100%

Bi-directional network percentage

Bi-directional network percentage

Service Cable Telco• TNC will increase

opportunities with cable and telecom operators because of infrastructure investment

• Our Broadband, RollingStream video platform and mSwitch NGN solutions help meet the TNC needs of both sectors

Source: SARFT Report January 2011 and UTStarcom

UTStarcom Confidential 16

(1)

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New Business Model of Cable Operators

Service of Cable Operators

Service of Cable Operators

Basic Service

Value-Added Service

Traditional TV Channel

Subscribed Channel

Information Channel

HD Channel

Video on Demand

Time Shifting Over Cable

Online Gaming & Shopping

Broadband Network Service

Data Service

Private Network Service

42%

10%

58%

90%

US Chi na

Val ue- Add Basi c

Revenue Structure of Cable Operators

USD

GDP per Person

ARPU Comparison among Countries

Strategy 3: Our Operational Support Services

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Equipment Sales Related Service Business

IP SignagePlatforms

IPTV, Internet TVPlatforms

iDTVPlatforms

TelecomOperators

TV and Cable

Operators

EnterpriseOperators

RollingStream platform allows our clients to provide end-to-end solutions including, video content service and other value added services like on-line gaming, on-line shopping and video phone service through their networks

Cable network operators need partners that can provide continued technological and operational support services for these platforms

Operational Support Services (OSS) expands our revenue stream with higher margin, recurring revenues

An Overview of the New Service or “Operational Support Services” Business

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ContentProducers /Providers

Ad ManagementSolutions

VASSolutions

IPTV/iDTVSubscriber Base

ContentDistribution

RollingStreamVideo Platform

Internet TVSubscriber Base

Mobile TVSubscriber Base

Internet TV Platform by Stage Smart Acquisition

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Recent Business Development

Successfully completed the construction of first Internet TV platform to support a cable TV network customer

Launched DOCSIS-EOC application (“EOC application”), Packet Transport Network 735 (“PTN 735”), MS 3005 server and several Wi-FI products at PT/EXPO COMM CHINA 2011

Won IPTV integrated broadcasting control platform contract in Tianjin and Zhejiang Province

Won MSTP and PTN contracts from Taiwan’s Chunghwa Telecom, the largest integrated telecom operator in Taiwan

Entered into strategic revenue-sharing partnership agreement with Wasu Digital TV Media Group, one of the largest digital TV content providers in China

Won E-Town 12 square kilometers affordable housing area telecommunication network project

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iTV.cn: Internet TV for Chinese outside China

Provides Chinese language content targeting the Chinese-speaking population located in North America

Integrated multi-screen viewing from a single managed platform

Time and location shifting

Reliable HD streaming

Multi-language programming

Value-added interactive service, such as distance-learning, gaming and e-commerce

Commercial launch in North America on October 1st

Q3 2011 Q4 2011

EducationEducation

GamingGaming

SocialSocialShoppingShopping

RadioRadio

Financial Overview and Outlook

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Third Quarter 2011 Highlights

Net Income of $8.0 million, or basic earnings per share of 5 cents;

Revenues of $83.3 million, a 35.7% or $21.9 million increase, compared to the same period of 2010;

Gross profit margin of 38.4%, compared to 19.7% in same period of 2010, 37.6% in Q2 2011 and 31.1% in Q1 2011;

Operating income of $14.2 million;

Cash balance of US$305.9 million in cash, cash equivalents, and short-term investments.

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Revenue Trend

$83.3 million in Q3 2011, 35.7% or $21.9 million increase, compared to $61.4 million in Q3 2010.

Nine months ended 2011 total revenue was $237.1 million, 10.1% or $21.7 million increase, compared to $215.4 million in the nine months ended 2010.

US$ (mm)

Quarterly Booking Amount

20

30

40

50

60

70

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

Booking

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Gross Margin Improvement

Gross margin for the third quarter of 2011 was 38.4% as compared to 19.7% in the third quarter of 2010.

Gross margin for the nine month ended 2011 was 36.2% as compared to 28.9% for the nine months ended 2010.

US$ (mm)

27.2

23

12

8

19

34.832.1

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 20110

5

10

15

20

25

30

35

40

Gross Profit

Gross Margin

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Continued Progress in Cost Cutting

US$ (mm)

46

2835.4 34.7

3025

17.8

4.2

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

0

5

10

15

20

25

30

35

40

45

50

One Time Gainon Divesture

OPEX

OPEX/Sales

Total OPEX of Q3 2011 included $4.2 million one time net gain on divestitures.

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Quarterly Profit Achieved

Quarterly Operating Income of $14.2 million…US$ (mm)

Quarterly Net Income of $8.0 million…

US$ (mm)

-18.8

-5.1

-23.3

-26.6

-11.1

9.7

14.2

-28

-23

-18

-13

-8

-3

2

7

12

17

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

-16

-9

-17.2

-23

-10.3

11.68.0

-28

-23

-18

-13

-8

-3

2

7

12

17

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

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Strong cash balance of $305.9 million in cash, cash equivalents, and short-term investment

Zero debt

Balance Sheet & Deposits

Cash Balance by Region Cash Balance by Currency

INR6% JPY

20%

RMB40%

USD32%

Other2%

China , 43%

Int'l, 57%

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Reiterating 2011 Financial Outlook

Total revenue to be within the range of $300 – $320 million (includes PAS deferred revenue)

Annualized operating expenses of less than $100 million

Breakeven in 2011 on a full year basis

OSS business comprising 10% of total sales in 2011 will be difficult due to the rigorous due diligence process, detail terms and condition negotiation with acquisition targets and revenue sharing partners

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Investor Relations Contacts

UTStarcom, Investor Relations

Jing Ou-Yang T: + 8610 8520 5153E: jouyang@utstar.com

Ogilvy Financial

In China:Agustin BautistaTel: +86-10-8520-6166Email: utsi@ogilvy.com In the U.S.:Jessica Barist CohenTel: +1-646-460-9989Email: utsi@ogilvy.com