MANILA, Philippines and ALAMEDA, Calif., March 13 /PRNewswire-FirstCall/ -- UTStarcom, Inc. , a global leader in IP-based, end-to-end networking solutions and services, today announced the deployment of 150,000 lines of its mSwitch(R) IP-based softswitch platform and iAN-8000(R) Multiservice Access Node (MSAN) as the foundation for a new, next-generation network with Philippine Long Distance Telephone Company (PLDT), the leading telecommunications provider in the Philippines.

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"PLDT has always been a leader in innovation. Our new, next-generation network will enable our customers to access innovative services such as VoIP and IPTV that can only be made possible through cutting-edge network technologies," said George N. Lim, senior vice president at PLDT. "Using UTStarcom's mSwitch and iAN-8000 solutions, we can reach more subscribers, offer new services, and accommodate more traffic with a more efficient and easier to manage network. This is only the beginning of the transformation of PLDT's network to the newest, state-of-the-art telecom infrastructure that will provide a multitude of benefits to our customers."

The first phase of the deployment targets unserved and underserved areas, key business locations and areas that need a capacity upgrade in Cavite, Batangas, Laguna, Bulacan and metro Manila.

"PLDT is among the first operators in the world to successfully migrate its Class 5 legacy TDM-based switches to a single, all-IP softswitch platform," said David King, senior vice president of international sales and marketing at UTStarcom, Inc. "By utilizing our mSwitch, PLDT will be able to improve the operational efficiency of its network while expanding both the array of broadband and wireless services it can offer as well as the subscribers that it can reach. With more than 200 billion minutes of IP usage on an annual basis in deployments around the world, our mSwitch is designed to serve as the IP core enabler for a multitude of integrated applications and services that will drive customer revenue and increase subscriber loyalty. "

"Class 4 and 5 switch replacement is increasingly becoming a trend across the industry as operators around the world are currently considering their options when replacing TDM-based equipment reaching its end-of-life point," said Jahangir Raina, director at industry research firm iLocus. "The deployment of UTStarcom's mSwitch next-generation technology at PLDT, one of the top-tier service providers in the world, is a validation of UTStarcom's leading position in the Class 5 replacement market. In 2006, iLocus estimated UTStarcom to have supported 191 billion minutes of Class 5 traffic over its mSwitch(R) NGN softswitch. Having UTStarcom replace the legacy voice equipment in PLDT is a clear substantiation of the 99.999 reliability and Class 5 features offered by the mSwitch(R) softswitch."

The deal represents UTStarcom's first contract in the Philippine market and demonstrates its ongoing efforts to develop the Asia Pacific region, one of the fastest growing markets for IT and telecommunication services in the world.

"We see increasing market demand for next-generation services and applications like IPTV and VoIP in the Asia Pacific region," King added. "UTStarcom will continue to develop the Asia Pacific market and address the growing demand for next-generation technologies with our cost-effective and flexible IP-based solutions."

About UTStarcom, Inc.

UTStarcom is a global leader in IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in the United States, China, Korea and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, visit the company's Web site at http://www.utstar.com/.

About Philippine Long Distance Telephone Company

PLDT is the leading telecommunications provider in the Philippines. Through its three principal business groups -- fixed line, wireless and information communications technology -- PLDT offers a wide range of telecommunications services across the Philippines' most extensive fiber optic backbone and fixed line, cellular and satellite network.

PLDT is listed on the Philippine Stock Exchange and its American depositary shares are listed on the New York Stock Exchange and the Pacific Exchange. PLDT has one of the largest market capitalizations among Philippine listed companies.

Further information can be obtained by visiting the web at http://www.pldt.com.ph/.

Forward-Looking Statements

The foregoing statements regarding, without limitation, the anticipated deployment of the Company's products in the Philippines, the anticipated benefits to service providers provided by the Company's products, the anticipated transformation of service provider networks to accommodate greater traffic, the anticipated deployment targets and timing of deployment of the Company's products, anticipated trends in switch replacement in the industry in which the Company sells its products, anticipated growth in demand for services that utilize the Company's products, and the Company's plans to continue to develop the Asia Pacific market are forward-looking in nature and are subject to risks and uncertainties that may cause actual results to differ materially. These factors include rapidly changing technology, the rapidly changing nature of the Philippines and Asia Pacific telecommunications markets, possible delays in system deployments or product introductions, possible downturns in the telecommunications markets of the Philippines, the Asia Pacific region generally and worldwide, the termination of new contracts, partnerships or alliances, and other uncertainties, such as changes in government regulation and licensing requirements and economic and political stability in the Philippines and the Asia Pacific region generally. UTStarcom also refers readers to the risk factors identified in its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission.

CONTACT: Andy Tennille, Senior Manager, Public Relations, UTStarcom,
Inc., +1-510-814-4421, or andy.tennille@utstar.com; or Ramon R. Isberto, PLDT
Spokesperson, +63 2 5113101, or fax, +63 2 5113100, or Horace A. Lavides, PLDT
Senior Manager, +63 2 8168684, or halavides@pldt.com.ph, both for PLDT

Web site: http://www.utstar.com/