iDirect Technologies And UTStarcom Successfully Test Next-Generation All-IP CDMA Solution To Expand Cellular Coverage

Herndon, VA., October 5 2006 – iDirect Technologies Inc (iDirect), a company of VT Systems Inc, today announced that UTStarcom Inc (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services, will join the iDirect IP Alliance.  IP Alliance Partners are industry-leading network software and equipment developers and manufacturers that are committed to delivering best-of-class solutions to the enterprise and carrier community.

iDirect and UTStarcom will partner to expand cellular coverage by backhauling CDMA traffic over shared satellite networks.  The joint solution combines UTStarcom’s MovingMedia™ 2000 all-IP CDMA base station equipment and iDirect VSAT satellite routers, allowing cellular service providers to cost effectively expand their cellular footprint to remote regions.

Utilizing shared access over satellite will allow providers to balance and redistribute available network bandwidth across multiple cell sites for greater network efficiency and lower bandwidth cost.  This ability to expand the network edge will provide new, more reliable cellular service to end users and greater revenue opportunities to cellular service providers.

“The iDirect and UTStarcom platform is a perfect marriage of next-generation, IP-based technology to backhaul cellular traffic. The UTStarcom base station delivers IP packets which are ideal for iDirect’s pure-IP-over-satellite solution.  Because the joint platform is optimized for cellular traffic, it means a solution resulting in lower CAPEX and OPEX costs compared to legacy solutions. This is an ideal solution for cellular service providers to expand the edge of their current networks, deploy new networks in remote regions and as a disaster recovery platform to restore cellular service in the case of network outage.”

~ John Kealey
President and CEO
iDirect Technologies

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UTStarcom is a global leader in IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. For more information about UTStarcom, visit the company's Web site at www.utstar.com.

iDirect Technologies, a subsidiary of VT Systems Inc, designs, develops, and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way internet/intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. iDirect was awarded the 2005 World Teleport Association Teleport Technology of the year, the Innovation & Technology of the Year by The ISCe Advisory Board, and named number one in the Deloitte & Touche Virginia Technology Fast 50 list of the fastest-growing U.S. technology companies. iDirect operates its corporate headquarters in Herndon, Virginia and has regional offices in Europe, Asia, and covering Latin America. Additional information is available on the company website at www.idirect.net.

VT Systems (VTS) is a provider of integrated engineering solutions, specializing in the fields of aerospace, electronics, land systems, and marine. Headquartered in Alexandria, Va., VTS has locations throughout North America. VTS offers a broad range of proven innovative services to both the commercial and government sectors. VTS is a wholly owned subsidiary of Singapore Technologies Engineering Ltd.   Please visit www.vt-systems.com.

Media Contacts:
Jon Douglas
iDirect Technologies
Tel: (1-703) 648-8042
Fax:  (1-703) 648-8015
Email: jdouglas@idirect.net

Carol Hrovoski
Corporate Communications Manager
VT Systems
Tel:  (1-703) 739-2610
Fax:  (1-703) 739-2611
Email:  chrovoski@vt-systems.com