[advertise]广告[/advertise]February 1, 2010, UTStarcom, Inc today announced that it has entered into agreements for a strategic relationship with Beijing E-town International Investment and Development Co., Ltd (BEIID), an investment company established by the Beijing Municipality which includes an investment of $48.5 million by BEIID and two unrelated investment funds, Ram Max Group Limited and Shah Capital Management. As part of the investment, UTStarcom will issue approximately 22 million shares of common stock at a price of $2.20 per share, with BEIID investing $25 million, Ram Max Group Limited investing $12.5 million and Shah Capital investing $11 million. Upon closing of the transaction, Mr. Baichuan Du, a former Deputy Chief Engineer of China's State Administration of Radio, Film and Television, will join the board of directors of the Company. Mr. Xiaoping Li, Executive Deputy General Manager of BEIID, and Mr. William Wong, a Managing Director at Yellowstone Capital, will also join UTStarcom's board of directors upon closing of the transaction. Also, UTStarcom will be moving its headquarters to Beijing. More important, UTStarcom will have a new CEO to replace current CEO Peter Blackmore. He is not a stranger to fiber optics industry around the world. He is one of the founders of Fiberxon, later Source photonic. He is the back man of Fiberxon’s amazing success. His name is Jack Lu. He is the right CEO candidate for today’s UTStarcom. There are several reasons that we think he is the right candidate. First, he is a leader with special personal magnetism charisma. All his employees just called him Jack. This is not usual in China. He is easy to talk with, his door opens to all his employees. This charisma will have special meaning to increase moral of UTstarcom’s employees. Second, he is good at find new investment. This has been proved from his work in Fiberxon. Thirdly, Jack has strong marketing ability, he is a very good marketing guy and a top sales. Fourthly, He already has enough experience on managing a company in UTStarcom’s scale. When he left Source Photonics, that company’s revenue already exceeded 500 million RMB. And last, he knows UTStarcom well. Fiberxon has special link with UTStarcom. As founder of Fiberxon, Jack must know UTStarcom very well. UTStarcom already has a lot of bad news in the past year. Now it really needs some exciting news. Jack Lu’s coming is really a good news for them.