PACT Continues to Divest Non-Core Business to Improve Cash Position with a Focus on Gaming and Lottery Technology in China and Asia

Tony Tong, Chairman and CEO of PacificNet, said, "As previously approved by our board of directors, PACT's new strategy is to focus on the rapidly growing gaming and lottery markets in greaterChina,Macau, andAsia. We believe this telecom asset sale will simplify our operations, reduce compliance costs, and improve our liquidity and gaming focus. Since most of our legacy business units are profitable, we believe we are in a healthy position to extract cash and value for our shareholders. We are in on-going discussion with multiple potential buyers and investors to maximize our return and to boost our cash position. Despite the divestiture of our telecom, call center assets and facilities, we believe our gaming strategy will continue to benefit from the CRM and database marketing expertise which we've gained in China andAsia in the past years."

"We are very excited about the market potential and strong demand for our gaming and lottery products in our surrounding markets," Phillip Wong, CFO of PACT, added. "Fueled by casino openings and a 23 percent jump in annual visitor volume, operators inMacau collected more than $10.3 billion in gaming revenue during 2007, an increase of 46 percent over 2006 asMacau has surpassed the Las Vegas Strip as the largest gaming market in the world. More than 27 million people visitedMacau during 2007, including 15 million visitors from Mainland China and 8.2 million visitors fromHong Kong.Macau is a Special Administrative Region ofChina and is the only place inChina where casino gaming is legal. I believe PACT has an early mover advantage as a leading domestic developer and manufacturer of gaming products for Asian players. We are confident that our gaming and lottery products have demonstrated their income generating capabilities and will be adopted by the increasing number of gaming and lottery operators inChina andAsia in 2008 and beyond."

About PACT

PacificNet (PACT) is a leading provider of gaming and mobile game technology worldwide with a focus on emerging markets inAsia,Latin America andEurope. PacificNet's gaming products are localized to their specific markets creating an enhanced user experience for players and larger profits for operators. PacificNet's gaming clients include the leading hotels, casinos, and gaming operators inMacau,Europe and elsewhere around the world. PacificNet also maintains legacy subsidiaries in the call center and ecommerce business inChina. PacificNet employs about 500 staff in its various subsidiaries with offices in the US,Hong Kong,Macau,China. For more information please visit http://www.PacificNet.com .

PacificNet's Major Operating Subsidiaries:

- PacificNet Games Limited (http://www.PactGames.com) is a leading provider of Asian multi-player electronic gaming machines, land-based and online gaming technology solutions, gaming related maintenance, IT and distribution services for the leading hotel, casino and slot hall operators based inMacau,China,the Philippines and other Asian gaming markets.

- Take1 Technologies (http://www.take1technologies.com) is in the business of designing and manufacturing electronic multimedia entertainment kiosks, coin-op kiosks and machines, Electronic Gaming Machines (EGM), bingo and slot machines, AWP (Amusements With Prizes) games, server-based downloadable games systems, and Video Lottery Terminals (VLT) such as Keno and Bingo machines, including hardware, software, and cabinets. Take1 Technologies is currently profitable.

- Pacific Solutions Technology is a CMM Level 3 certified software development center located inShenzhen, China, that specializes in the development of client-server systems, internet e-commerce software, online and casino gaming systems and slot machines, as well as banking and telecom applications using Microsoft Visual C++, Java, and other rapid application development tools. Pacific Solutions has been a profitable company for the past few years.

- SOLD: PacificNet Epro (http://www.EproTel.com.hk): CRM Call Center and Customer Services Outsourcing. Epro has been a profitable company for the past few years.

- PacificNet Clickcom (http://www.clickcom.com.cn) MOABC.com: VAS, SP (SMS, WAP)

- Guangzhou WanRong (http://www.my2388.com): Value-added telecom service provider (VAS, SP, SMS, MMS, IVR, WAP, Java Mobile Games). WanRong has been a profitable company for the past few years.

- PacificNet Communications Limited (http://imobile.pacificnet.com), mobile telecom provider inHong Kong. Pacific Communications has been a profitable company for the past few years.

- iMobileChina (http://www.imobile.com.cn, http://www.18900.com, http://wap.17wap.com) the leading e-commerce portal for mobile phone hardware, software, games and accessories online sales provider inChina. iMobile is also the designated e-commerce service provider and operator for Nokia (http://www.shop.nokia.com.cn) and Motorola (http://motostore.com.cn) and responsible for the design, operation, payment processing, customer services support hotline, CRM, and logistic services for Nokia and Motorola inChina. iMobile has been a profitable company for the past few years.

    For more information, please contact:

    PacificNet USA office:
     Jacob Lakhany
     Tel:   +1-605-229-6678
     Email: investor@pacificnet.com

SOURCE PacificNet, Inc.

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Tags: ,CNO,ECM,CPR,ENT,GAM,ASI,RCN,PACT-Divest-Non-Core

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