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News Release

Hong Kong and Macau

Jones Lang LaSalle Acts as Real Estate Advisor for UTStarcom's Sale of Its Hangzhou Facility

The largest-ever business park investment transaction in China

Leading professional real estate services firm Jones Lang LaSalle announced today that it has assisted UTStarcom, the global leader in IP-based end-to-end networking solutions, in completing the sale of the company's 240,000-sqm manufacturing plant, R&D centers, and administrative offices as well as other assets related to the property located in Hangzhou to the Zhongnan Group of Companies.

The total value of the transaction reached approximately USD 140 million, making it the largest-ever business park investment transaction in China to date. The sale also marks the first predominant industrial sector investment transaction in the Hangzhou property market. Jones Lang LaSalle acted as the real estate advisor to UTStarcom for this landmark transaction.

As previously disclosed, UTStarcom has leased back a portion of the disposed building to maintain its current operations and presence in Hangzhou. The commencement date of this leaseback was June 1, 2010.

 “The global financial crisis has prompted many companies to be more cost-conscious. Cost saving has been a clear objective, and focus has shifted from short-tem 'survival' to building resilience for medium-term to long-term growth. The UTStarcom’s case is a prime example that companies are re-assessing their real estate strategies in order to make better use of their capital and focus more on their core businesses,” noted Stuart Ross, Head of Industrial with Jones Lang LaSalle in China.