1. Corporate Presentation NASDAQ: UTSI December 2011

2. 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.

3. Agenda 3 Corporate Overview 1 Financial Overview and Outlook Market Dynamics & Growth Strategy 23

4. CORPORATE OVERVIEW

5. 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 m Market Cap:$212.9 m (as of December 9, 2011) Legal Counsel:Wilson Sonsini Goodrich & Rosati Auditors: Price Waterhouse

6. 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

7. 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

8. RollingStream Technology 8 SOLUTION AND VALUE TO CUSTOMER PRODUCTS OR SERVICE PROVIDEDTARGET 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 STBDual-mode STB

9. Broadband and NGN Solutions 9 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

10. 10 Leading Market Position China Focus AreaUTStarcom’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

11. 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

12. 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

13. Market Dynamics & Growth Strategy

14. China’s Three Network Convergence: a growth catalyst for UTStarcom 14 Focused on cable / teleco two-way entrance Pilots concluded and expansion drives ahead Policy Launched Pilots Conducted National Implementation 20102010—2012 2013—2015  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.

15. Strategy 2: Parallel Growth Opportunities 15 none 4million (iDTV) <5million >1 billion 6.7million (IPTV) >100million 187 million 88 million none Interactive video services Interactive video services Broadband service TV and Digital TV service TV and Digital TV service Voice services <25%100% Bi-directional network percentage Bi-directional network percentage ServiceCableTelco 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

16. UTStarcom Confidential 16 (1) 16 New Business Model 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 Revenue Structure of Cable Operators USD GDP per Person ARPU Comparison among Countries

17. Strategy 3: Our Operational Support Services 17 Equipment Sales Related Service Business IP Signage Platforms IPTV, Internet TV Platforms iDTV Platforms Telecom Operators TV and Cable Operators Enterprise Operators  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

18. An Overview of the New Service or “Operational Support Services” Business 18 Content Producers /Providers Ad Management Solutions VAS Solutions IPTV/iDTV Subscriber Base Content Distribution RollingStream Video Platform Internet TV Subscriber Base Mobile TV Subscriber Base Internet TV Platform by Stage Smart Acquisition

19. 19 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

20. 20 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 1 st Q3 2011Q4 2011 Education Gaming Social Shopping Radio

21. Financial Overview and Outlook

22. 22 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.

23. 23 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

24. 24 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)

25. 25 Continued Progress in Cost Cutting US$ (mm) Total OPEX of Q3 2011 included $4.2 million one time net gain on divestitures.

26. 26 Quarterly Profit Achieved Quarterly Operating Income of $14.2 million… US$ (mm) Quarterly Net Income of $8.0 million… US$ (mm)

27. 27  Strong cash balance of $305.9 million in cash, cash equivalents, and short-term investment  Zero debt Balance Sheet & Deposits Cash Balance by RegionCash Balance by Currency

28. 28 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

29. 29 Investor Relations Contacts UTStarcom, Investor Relations Jing Ou-Yang T: + 8610 8520 5153 E: jouyang@utstar.comjouyang@utstar.com Ogilvy Financial In China: Agustin Bautista Tel: +86-10-8520-6166 Email: utsi@ogilvy.comutsi@ogilvy.com In the U.S.: Jessica Barist Cohen Tel: +1-646-460-9989 Email: utsi@ogilvy.comutsi@ogilvy.com