NASDAQ: UTSI
March 2012

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. Forwardlooking 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.
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 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
 Provide operators with increased revenue opportunities and subscribers with enhanced interactive communications experiences
Share Price:
Shares Outstanding:
Legal Counsel:
Auditor:
$1.58 (as of March 13, 2012)
151 million
Covington & Burling LLP
PricewaterhouseCoopers
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 Achieved profitability 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
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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
• Concentrate on China and
Asian markets
• Leverage Three Network
Convergence (TNC) policy in
China
• Senior management closer to client decision-makers
• Successfully improved internal communication & lowered costs
Strategy 2: Telecom and
Cable in Parallel
• Core IP technology applied across different networks
• Strong competitive edge and opportunity with both telecom and cable operator
Strategy 3: Equipment
AND Service
• Demand for interactive services creates the opportunity for equipment
AND services revenue with higher margin earnings
• New service business model moves UTStarcom up the value chain and closer to interactive TV operators
Existing telecommunication products, RollingStream technology and sales channels serve as the foundation for UTSI’s new service business
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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:
1.Telecom operators
2. Cable operators
Infrastructure
Components:
Terminals:
Video Storage and
Streaming Servers
IP STB
OSS
Dual-mode STB
3. TV stations and content license holders who, in China, run broadcast control platforms
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SOLUTION AND VALUE
TO CUSTOMER
Broadband Solution: provides high bandwidth network infrastructure for communications networks
PRODUCTS OR SERVICE
PROVIDED
• PTN
• MSTP
TN725
• G/E-PON
NetRing 4K
TN705
NetRing2500
BBS 4000
ONU
NGN Solution:
Provides a multiservice IP-based soft switch system for voice, data, mobile and multimedia operations
Call server
Media Gateway
TARGET CUSTOMER
1.Telecom operators
2. Cable operators
1.Telecom operators
2. Cable operators
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Focus Area
UTStarcom’s Achievements
Interactive
Television
(including IPTV, iDTV & Internet TV)
 Currently hold a leading IPTV market share in China

Contracts won from both cable and telecom operators to expand
IPTV system - Zhejiang, Fujian, Anhui and Shenzhen
 Built 7 IPTV Broadcast Control Platforms in China

Target Video Service Cloud Platform launch in Q1 2012
Smart Grid

Approved as a qualified EPON supplier for China State Grid
Company
 The first EPON supplier to China’s electricity grid companies

EPON product supplier to the Ningxia provincial electricity grid company
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Market & Focus
Area
Japan:
Focused on
Broadband
UTStarcom’s Achievements
 Supply 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
 Cumulative booking of higher-margin PTN products hit $100 million
Other APAC Market:

Won sizable MSTP and PTN contracts from Chunghwa Telecom
Focused on
Broadband

RollingStream
® infrastructure product sales increased in India
UTStarcom Confidential

Set Top
Box Sales
28%
Equipment Spending & Network
Buildout
Media
Platform
Spending
16%
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
Pilots concluded and expansion drives ahead
Focused on cable / teleco two-way entrance
National Implementation
Pilots Conducted
Policy Launched
2010 2010 —2012
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.
2013 —2015
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 In 2010, UTStarcom built 6 IPTV broadcast control platform projects in
Sichuan, Shenzhen, Beijing, Hubei, Hunan, Shandong which were all successfully connected with the central-level platform
 In 2012, UTStarcom won the first of the 42 new trial cities in China and built IPTV broadcasting control platform in the city of Chongqing
Sichuan broadcast control platform
CTV 重庆
D
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• 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
Interactive video services
Broadband service
Bi-directional network percentage
Voice services
4million
(iDTV)
<5million
<25% none
6.7million
(IPTV)
>100million
100%
>1 billion
TV and
Digital TV service
187 million
88 million
Source: SARFT Report January 2011 and UTStarcom none
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Corporate Strategy 3: Equipment and Services
Application
Products
Network
Infrastructure
Video
Service Cloud
Revenue
Sharing
Equipment Provider Media Operational Support Service
Traditional Business: Equipment Provider
 Video Service Cloud (VSC) Platform enables video operators to rapidly launch IP video service and provide customers with interactive video experience
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Video Content
Exchange
Cloud-Based Video Services
Services include: video conferencing, online education, online office, online theater …….
Video Distribution Network
Rollingstream technology
Video
Communication technology
Network
Infrastructure technology
Strategic partnership on broadband resource
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 $83.5 million in Q4 2011, 9.6% or $7.3 million increase year over year
 $320.6 million in FY2011, 10.0% or $29.0 million increase year over year
 Without PAS deferred revenue, book-to-bill ratio for the fourth quarter was 0.70.
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 Q4 2011 gross margin was 34.2% vs. Q4 2010 gross margin of 10.6%
 FY2011 gross margin was 35.7% vs. FY2010 gross margin of 24.1%
US$ (mm)
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
Achieved target of operating expenses below $100 million in 2011
US$ (mm)
35
45,5%
30
49,3%
50,0%
25
20
15
10
5
40,0%
34,7
0
Q4 2010
30,2
Q1 2011
4,2
25,1
20,0
27,1%
17,8
Q2 2011
24,0%
21,3%
Q3 2011 Q4 2011
30,0%
20,0%
One-time gain on divestiture
OPEX
OPEX/sales
Total OPEX of Q3 2011 included $4.2 million one-time net gain on divestitures
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 Q4 2011 operating income of $8.5 million and Q4 2011 net income of $4.1million
US$ (mm)
 
Operating Income
 
Net Income
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 Cash balance of $304.0 million in cash, cash equivalents, and short-term investment
 Zero debt
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 Accelerating growth of media operational support service business
 Launch VSC platform and associated services in Q1 2012
 Focus on profitability improvement for equipment business
 Increase enterprise value and enhance shareholder communication
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UTStarcom, Investor Relations
Jing Ou-Yang
T: + 8610 8520 5153
E: jouyang@utstar.com
Ogilvy Financial
In China:
Agustin Bautista
Tel: +86-10-8520-6166
Email: utsi@ogilvy.com
In the U.S.:
Jessica Barist Cohen
Tel: +1-646-460-9989
Email: utsi@ogilvy.com
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