Former UTStarcom Personal Communications Division Renamed Personal Communications Devices, LLC

Business Wire, July 2, 2008

New PCD also Unveils Fresh Look

HAUPPAUGE, N.Y. -- Personal Communications Devices Holdings, LLC, a newly formed entity controlled by AIG Investments, today announced the completion of its acquisition of the assets of UTStarcom's (NASDAQ: UTSI) Personal Communications Division. As part of the announcement, the former UTStarcom Personal Communications Division was renamed Personal Communications Devices, LLC (PCD), and a new corporate logo was unveiled.

PCD will continue to design and manufacture with strategic partners in Japan, Korea and China, bringing unique products to wireless carriers in North and South America. Products that PCD offers include handsets, PocketPCs, smartphones, messaging devices and wireless broadband modems.

While sporting a new name and look, PCD's management team and existing employee base remains in place, and the new PCD will retain its Hauppauge headquarters, as well as warehouses in Brea, California and Toronto, Ontario. With the announcement of the new agreement, PCD adds resources that will allow it to pursue an even broader range of key initiatives.

"Our name and corporate look have changed, but our successful business model has not. PCD will continue developing handsets and accessories and we remain focused on providing our current manufacturing partners and carrier customers outstanding support and service," says Philip Christopher, the President and CEO of PCD. "The new PCD is well positioned to establish a more dominant market share. And with even greater distribution and financial flexibility, the company will be able to more easily capitalize on strategic growth opportunities and emerging market trends."

In addition to traditional logistics and fulfillment functions, PCD also provides product planning and development, technical assistance and testing, quality control and post-launch support services--including advertising, public relations, warranty repair and warranty tracking on handsets brought to market.

As a wireless leader and industry pioneer, PCD has a history of innovation. It is known for developing the first smartphone in America (Maestro) and launching the first one megapixel camera phone in the U.S., among other industry achievements. The new PCD plans to build on this tradition and its leadership position.

According to Christopher, initiatives the new PCD expects to pursue include increasing the domestic GSM business and improving operating efficiencies in its logistics and supply chain. The company also hopes to extend its presence in Latin and South America and increase the number of handsets it brings to market from Asia.

Robert Thompson, Senior Managing Director and Head of Alternative Investments at AIG Investments stated, "PCD's business and growth strategy fits well with AIG Investments' global footprint and experience in private equity investing, particularly in Asia where PCD maintains its key supplier relationships. We look forward to working together to leverage our strengths."

The acquisition of PCD was led by AIG Vantage Capital, L.P., a fund sponsored by AIG Investments, with minority investments from Alumni Capital Network and other investors.

About Personal Communications Devices, LLC (PCD)

PCD (www.personalcommunicationsdevices.com) provides wireless communications devices including handsets, PocketPCs, smartphones, messaging devices and wireless broadband modems to carriers throughout North and South America. PCD offers branded wireless devices from leading manufacturers as well as those that are sold under private carrier labels. The company also provides technical and customer support.

Based in Hauppauge, New York, Personal Communications Devices (PCD) is a subsidiary of Personal Communications Devices Holdings, LLC.

About AIG Investments

AIG Investments is a global leader in asset management with extensive capabilities in equity, fixed income, hedge, private equity, and real estate investments. Member companies of AIG Investments manage more than US $750 billion in assets and employ approximately 2,500 professionals in 46 offices around the world as of March 31, 2008. AIG Investments is the asset management arm of American International Group, Inc. (NYSE:AIG).