UTStarcom Debuts the CDM8935, the 'Mini', with Cricket(R)

HAUPPAUGE, N.Y. (Map) - UTStarcom Personal Communications, a division of UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services, announced today that the UTStarcom CDM8935 mobile handset will be available beginning tomorrow to Cricket customers. Named the mini, the CDM8935 is one of the smallest wireless CDMA, Bluetooth, camera phones available in the U.S., measuring less than four cubic inches overall. This marks the debut of the handset to consumers, and the mini will only be available through Cricket, which is a subsidiary of Leap Wireless International, Inc. (Nasdaq: LEAP).

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The mini is available at Cricket retail stores and dealers for $179.99. The slim, lightweight phone fits easily into the palm of your hand or front pocket and features a built in VGA camera, speakerphone, Bluetooth Wireless technology, text and picture messaging capabilities, and internal antenna. The mini is data capable, supporting Cricket's Mobile Web, which allows customers to browse news, entertainment, sports, and chat, and personalize their handsets with the latest ringtones and graphics. The mini will also allow customers to download games with Cricket Games and Apps.

"The mini is a cool little phone, offering full functionality, great style and a small format at a small price," said

The clamshell-style, dual-mode (800/1900 MHz CDMA) mini, which weighs less than three ounces and measures only (h) 3.3" x (w) 1.7" x (d) 0.7", truly fits into the palm of your hand. The phone is equipped with a CMOS 310K camera and images can be viewed on its 1.5-inch 262K Color TFT (128 x 128) main display screen. The phone also has a one-inch 65K Color CSTN (96 x 64) exterior display.

"We are excited to enhance our mobile handset lineup with this unique little phone from UTStarcom," said Sergio Garcia, director of device strategy at Cricket. "Cricket customers will now be able to get the ultimate in portable communications."

Additional features of the mini include text and picture messaging, voice- activated dialing, CMX 32 polyphonic ringtones and is designed to support many of the popular audio formats including MIDI and MP3; and popular image formats including JPG and GIF.

About UTStarcom Personal Communications

UTStarcom Personal Communications is changing the way the world communicates through innovative wireless devices that deliver advanced communications solutions to improve personal lifestyles.

UTStarcom Personal Communications provides wireless communications devices including handsets, PocketPCs and wireless broadband modems to carriers throughout North and South America and supplies every CDMA carrier in the U.S. and Canada. The company's products are manufactured by its parent company, UTStarcom, Inc. (Nasdaq: UTSI), and by third-party original equipment manufacturers. UTStarcom Personal Communications Division is based in Hauppauge, New York, and maintains offices and support facilities throughout the U.S., Canada, Latin America, Korea and India.

UTStarcom, Inc. is a global leader in IP access networking solutions and international service and support. The company sells its wireline, wireless, optical and switching solutions to operators around the world. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in New Jersey, China, and India.

About Cricket(R)

Cricket is a simple, affordable wireless service offering consumers and local businesses a flat-rate unlimited service over the latest technology, high-quality, all-digital CDMA2000 1X and 1xEV-DO wireless network. Designed for customers whose basic and advanced wireless needs have not been met by traditional communications companies, Cricket is the pioneer of unlimited services with no long-term commitments or credit checks required. Cricket offers customers access to a variety of the latest devises and feature-rich mobile applications such as unlimited text, instant and picture messaging, Mobile Web, popular games, ringtones and wallpapers. For more information on Cricket, visit http://www.mycricket.com. Cricket is offered by Leap Wireless International, Inc., headquartered in San Diego, Calif. For more information on Leap, visit http://www.leapwireless.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding UTStarcom's expectations, beliefs, intentions or strategies regarding the future and including, without limitation, the anticipated functionality, features and style of, and benefits and affordability to users of, the Mini; the rapidly changing nature of the telecommunications market; and changes in government regulations of the handset industry.

All forward-looking statements included in this document are based upon information available to UTStarcom as of the date hereof, and UTStarcom assumes no obligation to update any such forward-looking statements. Forward- looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These risks and other risks relating to UTStarcom's business are set forth in the documents filed by UTStarcom with the Securities and Exchange Commission, specifically its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments thereto.