UTStarcom has successfully completed a rigorous security audit of its IPTV DRM System. The security audit was commissioned by UTStarcom in June 2006 and completed in April 2007 by the premier security-engineering firm in the country Merdan Group. According to audit results, the robustness of UTStarcom's digital rights management solution is among the highest that Merdan Group has audited. The results indicated that all areas were robust at the "Criminal Enterprise Level," the highest rating, with the exception of one area involving the Set Top Box installation that was rated at the second highest rating of "University Challenge Level."

"DRM is a critical component of all IPTV systems, including UTStarcom's RollingStream end-to-end IPTV system, and we are very pleased that our DRM solution has received such esteemed recognition from one of the most respected security firms in the industry," said Dr. Qiang Li, chief scientist of UTStarcom and chief architect of UTStarcom's IPTV RollingStream product line. "The proven and consistent, high dependency levels of UTStarcom's DRM system reinforces our commitment to ensuring content security in our delivery of IPTV to our customers and partners."

UTStarcom's DRM solution further enhances its IPTV product portfolio and its capability of deploying end-to-end IPTV system in a timely and cost-effective fashion.

"I am pleased to announce the Merdan Group has been engaged by UTStarcom to perform an independent security audit of their new and advanced DRM system. We are pleased to add UTStarcom to our growing list of international customers," stated Gilbert Huey, president of Merdan Group. UTStarcom works closely with its customers and their content providers to evaluate and identify which DRM solution available on the market will best accommodate the needs for their system.

"Selection of a DRM solution for any IPTV service is a complex process, involving issues related to technology, business, and geopolitics. We will continue to take the 'DRM-neutral' position in planning IPTV deployments and position our solution as just one of the options. We want to ensure that our customers are satisfied with their IPTV networks from end-to-end, and we will continue to partner with other DRM vendors to deliver the most suitable solution to our customers," Dr. Li added.

UTStarcom has no current plan to offer its DRM solution as a standalone product.