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Virgin Mobile USA and UTStarcom
Cut the Fat from Cell Phones!
October 23, 2006

Origin Of News Release: Warren, NJ and Hauppauge, NY
Original Release Date: October 23, 2006
Product Name: SLICE PCS-1400
MSRP: $49.99
Availability: November 2, 2006

UTStarcom's SLICE PCS-1400 Mobile PhoneThe saying “flat as a pancake” takes on a whole new meaning when used to describe the newest mobile phone from Virgin Mobile USA and UTStarcom Personal Communications, a division of UTStarcom, Inc. (NASDAQ: UTSI). Named the SLICE, this trim bar-style handset is the thinnest cell phone currently available in the U.S. without a contract or an activation fee, measuring just 0.4” – less than half an inch. The SLICE is available now at Virgin Mobile retail partners and will be available online at www.virginmobileusa.com as of November 2nd, at the “slim” price of $49.99.

“It’s unbelievable that something as thin as a CD jewel case boasts both the latest in technology and an array of the industry’s hottest mobile features,” said Dan Schulman, chief executive officer, Virgin Mobile USA. “The SLICE’s stylish design, slim profile and unique flat keypad, combined with Virgin Mobile’s Pay As You Go wireless service, will make this an incredibly appealing handset for our youthful customer base.” According to Virgin Mobile’s own research, 33% of current cell phone users[1] say they want a thin design for their next mobile phone.

“SLICE is another example of UTStarcom’s dedication to developing innovative mobile devices that are practical, fashionable and affordably priced,” Philip Christopher, president of UTStarcom Personal Communications. “We believe this handset will be a popular gift to give this holiday season to teens and young adults.”

The SLICE comes pre-loaded with hot new games, including Midnight Pool Players Club and Platinum Solitaire Players Club, from Virgin Mobile. With a powerful Lithium Ion 900 mAh battery, continuous talk time for the SLICE is up to 230 minutes (3.8 hours), standby is up to 270 hours. The SLICE measures 4.3” (h) x 1.8” (w) x 0.4” (d) and weighs only 2.3 ounces. The seamless keypad, which emits a bright blue backlight when pressed, makes text messaging a cinch.

With a built-in speakerphone for hands-free talking, the SLICE features a 1.5” 65K Color STN (128 x 128) color screen with 32 MB/8 MB (Flash/RAM) memory capacity that can hold up to 500 phone book entries. The SLICE also utilizes Qualcomm’s CMX™-enabled ringtones and screensavers, which supports popular audio (MIDI, QCP, MP3, MPD) and image (PNG, JPG, GIF, Animated GIF) formats. Virgin Mobile customers can download superphonic ringtones, games and screensavers.

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 Virgin Mobile USA, LLC

Launched nationally in July of 2002, Virgin Mobile USA, LLC is the nation’s first wireless network created for and defined by youth. Virgin Mobile is a joint venture between Sir Richard Branson’s Virgin Group and Sprint Nextel, which operates one of the largest 100-percent digital, nationwide PCS wireless networks in the United States. The country’s first mobile virtual network operator (MVNO), Virgin Mobile’s four million customers have access to a service portfolio that includes multiple voice pricing options, a full range of handsets and a broad array of messaging, music and mobile content offerings – without long-term contracts. J.D. Power and Associates has recognized Virgin Mobile as America’s top prepaid wireless carrier for Customer Satisfaction Excellence and for providing “An Outstanding Customer Service Experience” under the Certified Call Center Program.

Virgin Mobile phones are available at more than 25,000 locations nationwide with Top-Up cards available at more than 100,000 locations nationwide. Virgin Mobile products can also be purchased online at www.virginmobileusa.com or by calling 888-322-1122.

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