UTStarcom Holdings Corp

Investor Presentation

NASDAQ: UTSI

Aug 2016

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Disclosure & Forward Looking Statements

This investor presentation contains forward-looking statements, including statements regarding the Company's expectation regarding its strategic initiatives and business outlook. 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 that may cause actual results to differ materially and adversely from the Company’s current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company’s management and their effect on the Company, the Company’s ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, successfully operate and grow its services business, execute its business plan and manage regulatory matters, as well as the risk factors identified in the Company’s latest Annual Report on Form 20-F, and Current Reports on Form 6-K, as filed with the Securities and Exchange Commission. 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 the conduct of its business is exposed to additional risks as a result.

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Leading Technologies in Packet Optical Transport and SDN Innovative and customized solutions that help operators to reduce opex/capex and

quickly launch new services Long-term partnerships with global blue-chip carrier customers Best-in-class product quality attributable to proven R&D and in-house

manufacturing capabilities New growth market opportunities in Residential Gateway, Data Center, and Smart

City

Investment Highlights

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Global spending on Carrier Ethernet Switches:

In 2013: $2.9B. By 2018: $3.7B (projected)

Worldwide carrier router and switch market to grow

at ~2% CAGR from 2014 to 2019

100G Packet Optical Transport

Revolutionary SDN Platform

Global spending on SDN:

In 2013: $1.5B. By 2018: $35.6B (projected)

Global carrier SDN and NFV hardware and software

to grow from less than $500 million in 2013 to over

$11 billion in 2018

Sources: Infonetics, SDNCentral, Plexxi,, TechNavio, Crehan Research Inc. and Lightspeed Venture Partners

Nearly 20,000 nodes have been deployed.

Flagship 100G TN765 field deployed in 2015.

New NG-PTN product line announced in 2015: higher efficiency and

advanced SDN-based features.

Integrated precise synchronization solution SyncRing – 2016.

Rich SDN functionality including L3VPN and uFlex BoD.

Layer3 VPN solution with SDN/NFV enabling – 2015.

Provisioning of pre-planned bandwidth on demand: uFlex BoD – 2015.

At the forefront of SDN development: SOO SDN controller launched in

2014 and POC completed in 2014.

Overview of Key Products

Data Center Switch

A swiftly growing market: Data Center Ethernet

Switch market growth at 16.27% CAGR (2013 to

2018). The data center switch market is forecasted

to approach $16 billion by 2017.

Potential need for large volumes of DC Switches thanks to wide

adoption and deployment of Data Centers worldwide.

UT’s SDN/NFV brings benefit of end-to-end service orchestration from

customer to DC port.

Virtual Broadband Gateway

A new disruptive technology to compete on

Residential and Enterprise Gateway markets.

Global Residential Gateway market is forecasted to

grow at a CAGR of ~7.8% over the period 2014-2019.

Residential networking devices market size in 2014

~$13.4B

A technology that brings intelligence to customer’s edge: service

flexibility, high data rates and improved quality of experience.

North America a primary target market .

Good potential to become an integral part of Smart City infrastructure.

Product Portfolio

Packet Optical Transport Network

• MPLS-TP & CE

• Complete product family from Metro Access and Aggregation to Core Network

• Integrated precise synchronization solution

• Large scale deployments for Tier 1 telcos

Packet Optical Transport Broadband Access

Wireless BB access solution

• Complete Carrier-class Wi-Fi solution: AP & AC, AAA, Billing, Policy, QoS, Portal etc.

• Mobile data offloading

Fixed-line BB access solutions

• MSAN, EAD and FTTx PON

• Over 40M access lines deployed

SDN & Network Management

• SDN product Line: SOO (Software Defined Open Packet Optical) Network

• SOO Station: SDN Sub/Central Controller

• SOO Store/Design/Care: SDN Apps

• Automation, BoD, Centralized L3

Services

• Professional services: planning, deployment, maintenance, technical support, project management etc.

• Large-scale deployments for IP-DSLAM, MSTP, MSAN, PON & Packet Optical systems and networks

SIMPLE NETWORK, SIMPLE OPERATION

• Centralized network and element management solution

• Advanced GUI-based network management with end-to-end service provisioning

• High scalability and reliability

Open Platform:

Open Southbound

I/F managing 3rd

party systems

Open Northbound

CORBA I/F and API

for integration

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GE/1

0G

E E

co

syst

em

1

0G

E/1

00

GE E

co

syst

em

Packet Optical Transport Products Portfolio

Core Aggregation Access CPE

SDN/NFV

SOO Network

Netman OMC-O

NMS

TN703A 64Gbps SW

GE/XGE

E1/STM-1

TN701B 10Gbps SW

GE SFP/RJ45

Indoor/Outdoor

1U

L2/3 L2/3

TN704A 136bps SW

GE/XGE

E1/STM-1

2U

TN765 960Gbps SW

1/10/100GE

10G POS

L2/3

9U

L2/3

100G

TN703C 6.4Gbps SW

FE/GE/E1 Indoor/Outdoor

TN703E 44Gbps SW

FE/GE/XGE E1/STM-1

TN701A 4.4Gbps SW

GE SFP/FE RJ45 Indoor/Outdoor

1U

TN705 88Gbps SW

2.5/10G POS FE/GE/XGE

E1/STM-1

3U

TN735 400Gbps SW

10GE/10G POS FE/GE

E1/STM-1

TN725 108Gbps SW

2.5/10G POS FE/GE/XGE

E1/STM-1

TN725E 176Gbps SW

FE/GE/XGE E1/STM-1

7U

18U

7U

1U

NG-PTN

PTN

* Development. Specs are subject to change

Network Intelligence 6

SyncRing: Time, Phase and Frequency Synchronization

SyncRing: Synchronization Solution

● High-precision sync solution based on IEEE 1588v2

and SyncE

● Accurate frequency, phase, and time

synchronization

● Meets stringent requirements of LTE/LTE-A

● Integrated platform for sync and data traffic

● Great scalability

● Centralized NMS

SyncRing XGM10/XGM20

● Grand Master

SyncRing XBC510

● Boundary Clock/ Transparent Clock

Netman 6000 OMC-O

● Centralized network management

SyncRing

RAN RRH

CP

RI Clock/ BMCA

PTP BC/TC

SyncE

XBC510 M

S

eNB

S

PTP/SyncE/ Data

Mobile Network Core

MME P-GW S-GW

BBU

S

PTP BC/TC

SyncE

XBC510 M

S

PTP BC/TC

SyncE

XBC510 M

S

eNB

S

eNB

S

Metro Transport

NetRing Grand Master

PTP BC/TC

SyncE

XBC510 M

S

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SOO Platform – Transport SDN

“SOO Station”: SDN Controller

- Centralized SDN Controller

- Open APIs for vertical integration of applications

- End-to-end automated service provisioning

- Path computing and management

- Advanced services including Bandwidth on Demand, L3VPN

“SOO Device”: SDN-ized Network Devices - Controlled by SOO Station

- NetRing series PTN products

“SOO APP”: In-house/3rd party applications

- In house apps for customer/manager service ordering,

network design etc.

- Open & standard interface for 3rd party’s APPs integration

3rd Party

Apps

SDN Product Line: “SOO(Software Defined Open Packet Optical ) Network”

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Outstanding Manufacturing & Quality Assurance Capabilities

Over 20 years manufacturing experience

Focus on telecom equipment

Comprehensive manufacturing capabilities: • From PCB Assembly To MEC Assembly To System Integration

• From NPI (New Products Introduction) To MP( Mass Production)

• SMT, THT (PTH), MEC Assembly, Micro BGA, CSP,0201

• BGA Rework and Re-Balling

The highest quality standards, comprehensive

quality control • Comprehensive quality control process, certified by LRQA for

ISO9001/14001, OHSAS 18001,QC080000

• Quality centric culture, implement “Kaizen” supervised by Japan

customer and partner

• Field proven, hardware failure rate less than 0.05% per month

Green, environment friendly, employee care

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CISCO故障件数 UTS故障件数 CISCO故障率 UTS故障率

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Japan

Softbank

NEC

India – around 35% broadband market share

BNSL

Bharti

Korea

Key Partner Dasan Networks

Latvia

LMT

Taiwan

Taiwan Chunghwa Telecom

Southeast Asia

Telkomsel, Indonesia

Sri Lanka Telecom

Brazil

Oi

USA

In pursuit of US residential gateway market

Multiple Tier-1 Carrier Customers

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Overview

Founded in 2015, VGL develops next generation products that allow seamless access and aggregation at the edge of the network.

Products VGL offers broadband gateway products that implement the next generation deployment model by which the

communication provider and the municipality would be deploying a base service network to provide bandwidth and emergency supports. Additional services such as TV programming, home monitoring, etc., will be deployed and can be offered by a third party vendor without being handled by the offering carrier, which typically aims at 3rd tier to some 2nd tier local and regional carriers.

Home gateway deployment: a simple Active Ethernet outdoor-mountable gateway with SFP-based 1G optical Ethernet uplink with 4 x 10/100 RJ-45 down links. The unit also supports 2xVoIP FXS ports for land line home phones. The gateway is powered by a battery backup pack and a 12V DC power source.

Virtual Gateway Labs (VGL)

Market Opportunity VGL’s platform will help fuel tomorrow’s open access network when broadband will be more than just the

Internet, and offering a new variety of virtual services including: Emergency communications Interactive entertainment Home automation Smart grid Connected sensor systems

Data Center Market Opportunities

Impact as related to UT business – Potential need for large volumes of DC Switches

– UT’s SDN/NFV can bring many benefits:

• Integration of DC and Telecom infrastructure for efficient end-to-end service orchestration

• Integration with DC for efficient implementation of network functions: Firewall, DPI, VPN, Routing, Load balancing etc.

Asia/Pacific is expected to have the largest NFV and SDN market growth between

now and 2018

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Smart City Market Opportunities

Smart City

ICT – vital enabling element of

the Smart City concept

Requires 100% broadband

penetration both fixed line and

wireless

Assumes convergence of

Telecom and IT infrastructure:

• Internet access

• Broadband services

• Telecom services

• Data services

• Cloud services

• Security, VPN, Firewall

• Big data analytics

• IoT, M2M

● 100% broadband

Penetration

● 100% wireless

coverage (4/5G, Wi-Fi)

● More traffic

● IoT, M2M

● IPv6

● Wide use of data

centers

● SDN Network

● Municipal Management

system (MMS)

● Growing need for NG-PTN metro network

● Need for large volumes of DC Switches

● SDN Experiences can bring many benefits

● High availability and scalability NMS

Impact as related to UT business

Non-GAAP Financial Overview

UTStarcom Confidential 14

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Revenue in $M Gross Margin Percentage

Operating Expenses in $M Net Income (Loss) in $M

32.3 28.7 32.4

16.7 26.8 25.7

22.3 20.0

0

5

10

15

20

25

30

35

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

8.9 9.0 7.8

11.7

6.7

5.1 6.6 6.4

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

-7.5

-13.7

-5.2

-0.9

-4.8

-14.7

0.3

5.5

-20.0

-15.0

-10.0

-5.0

-

5.0

10.0

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

24.0%

11.9% 14.9% 16.2%

22.8%

30.6% 27.2%

41.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

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We will continue to optimize our core optical network business to exceed our customers’ expectation.

Looking at the third quarter of 2016, the Company expects to generate

non-GAAP revenue in the range of $15-$20 million.

Outlook

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Investor Relations Contacts

For investor and media inquiries, please contact: UTStarcom Holdings Corp. Tel: +852-3951-9757 Fei Wang, IR Director Email: fei.wang@utstar.com

Ning Jiang, Investor Relations Email: njiang@utstar.com