I have sent the following recently to the company management & board of directors, those who share a similar frustration, may send the board an email to: directors@utstar.com

Dear Sir/Madam,

I have been a UTStarcom shareholder since 2003, I strongly believed in the company technology, prospects, vision and management, unfortunately however, since January 2004, the company share price continued to decline from the low $40s to $2.79 as of Friday, November 2, within the last 4 years, I have lost 95% of my savings as the company stock price continued to collapse due to the company shrinking PAS market, various legal and regulatory investigations, continued heavy losses, lack of clear vision for the company future growth and loss of key management personnel.

It is promising that current management have progressed on the regulatory filings, and is putting in place a strategic plan to revive the business, however the market seems to discount those efforts and the stock price is heading toward a new all time low, I believe the reasons behind the continued decline are the following:

- Timid downsizing efforts: the market is clearly not convinced that the 11% percent reduction in the work force is enough to stump the bleeding in cash flow.
- Unclear cost savings efforts: the market is unable to appreciate the depth or the efficacy of the other cost savings efforts to be undertaken, such as procurement improvements, and supply chain management, the market is treating those efforts as “too little, too late” as it perceives those efforts as attempting to treat a heart attack patient in the emergency room by offering him a healthy food diet.
- Questionable growth prospects: the market continue to believe that the company does not have a sustainable profitable growth roadmap to replace PAS declining sales, while IP technologies and especially IPTV remains promising, the regulatory environment in China regarding IPTV remains hostile, while IPTV growth in India remains small and under severe pricing pressures.