BEIJING, July 1 /PRNewswire-Asia/ -- UTStarcom, Inc. (Nasdaq: UTSI), today announced additional details of its strategic cooperation agreement dated as of June 17, 2010 between UTStarcom and China Merchants Bank (CMB). The Cooperation Agreement contemplates that CMB would provide to UTStarcom and its affiliates financial services, including foreign exchange services and financial consulting services, and a combination of factoring, supply chain financing and other financing services based on the assessment of the needs of different projects. The financial consulting services would include advising on money policies, fiscal policies and capital market policies as well as investment and financing structures. These services would be provided without charge to UTStarcom. CMB would also work with UTStarcom to design other types of financing solutions such as private placements, trusts, debt instruments and mergers and acquisitions to meet the needs of identified projects. Pursuant to the Cooperation Agreement and subject to certain terms, UTStarcom has selected CMB to be the main underwriter for any debt financing to be obtained for its projects.
The ability to tailor the financial product to fit the needs of specific projects is an important aspect of the Cooperation Agreement and provides UTStarcom with important flexibility in structuring its projects.
Provision of the services under the Cooperation Agreement, including the previously announced credit line of at least RMB2 billion, will be subject to satisfaction of conditions to be agreed, and are expected to include, for each project or service, negotiation of separate definitive agreements, compliance with applicable laws and regulations and satisfaction of CMB's credit and risk management policies and approval procedures.
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy
revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks.
For more information please visit: http://www.utstar.com
Forward-Looking Statements
This release includes forward-looking statements, including statements regarding the Company's anticipated cooperation with China Merchants Bank under the Cooperation Agreement, related credit line and other financing arrangements. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These risks include the ability of the Company to successfully implement its major projects, to enter into definitive agreements with respect to any specific cooperation, project, credit line, loan or the like pursuant to the Cooperation Agreement with China Merchants Bank, to satisfy any conditions relating thereto and to otherwise realize the anticipated benefits of its cooperation with China Merchants Bank, (the Company's ability to rapidly push triple network convergence in China) as well as risk factors identified in its latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. The Company is in a period of significant transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this release are based upon information available to the Company as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statement.
