has closed a previously announced transaction with Stage Smart Limited. Under the terms of the transaction, UTStarcom acquired a 75% interest in Stage Smart for US$ 30 million. The total consideration UTStarcom paid has two parts: 1) US$20 million in cash to Stage Smart in exchange for preferred stock. These funds will be used as working capital by Stage Smart. 2) 4,473,272 shares of UTStarcom's common stock issued to Smart Frontier Holdings Limited, Stage Smart's sole shareholder. In exchange for this two part consideration, UTStarcom owns a majority of the outstanding ordinary shares and all of the preferred stock of Stage Smart.