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- Company Expands Value Added Services to Include On-Demand Video via Mobile Phones BEIJING, Jan. 20 /Xinhua-PRNewswire/ -- PacificNet Inc. (Nasdaq: PACT), a leading provider of customer relationship management (CRM), call center, Interactive Voice Response (IVR) services and Value-Added Services (VAS) in China, announced today that its subsidiary Guangzhou 3G has partnered with Chinese Entertainment International (CEI) to launch the iPACT Mobile Video Services. With the anticipated launch of 3G services in China, mobile video is widely recognized by mobile operators, value-added service providers and mobile device manufacturers to drive new mobile revenue growth. According to industry research, Chinas mobile phone video subscribers are expected to reach 66 million by 2008 with a market size of RMB 1.2 billion, and 195 million subscribers by 2010 with a market size of RMB 4.9 billion. In preparation for the arrival of 3G services in China, Guangzhou 3G and CEI have formed a partnership to jointly launch the iPACT Mobile Video Services by combining the competitive advantages, geographic coverage, and content resources of the two companies. The iPACT Mobile Video Services will allow subscribers to use SMS, MMS, WAP and IVR to submit a request and receive mobile video by downloading or watching live via mobile WAP services. The video content includes movies, preview trailers, film clips, music and sound tracks, posters and casting photos. Subscribers can even pick and choose their favorite movie scenarios and alternative endings on demand. Subscribers can save their favorite dialogues, song and sound effects as ring-tones or CRBT in their mobile phones. Under the iPACT program, PacificNet will provide all of the hardware, software, application, and content for VAS including a variety of IVR and other wireless and fixed-line VAS content to qualified VAS-Alliance partners on a profit sharing basis. iPACTs VAS content includes video, audio, color ring back tone (CRBT) services, background music (BGM) services, VICQ mobile instant messaging services, sports news, weather forecasts, stock market, humor, songs and mobile karaoke, mobile TV and video, games, entertainment, as well as community-oriented services such as chatline and dating services. Mobile and fixed-line phone users can access PacificNets VAS-Alliance services through Guangzhou 3G presence in 26 provinces in China. "Wireless entertainment based on mobile phone and mobile network represents a totally new multimedia consumption pattern, making mobile phones a 24-hour multimedia content distribution channel," said Karen Cai, General Manager of Chinese Entertainment International. "As a pioneering move in the entertainment industry, our joint rollout of the iPACT Mobile Video Service will provide movie and TV viewers with a unique entertainment experience on demand, anytime, anywhere." "In the development of our 3G value-added services, we have learned that our subscribers would most likely to spend money on purchasing video, movie, TV, music, and sound-tracks using their multimedia mobile phones," said Super Wang, General Manager of Guangzhou 3G. "PacificNets launch of the iPACT Mobile Video Services is expected to play a key role in the next phase of our growth, as part of the iPACT content delivery campaign." About Chinese Entertainment International Limited (CEI) Established in 1998, Chinese Entertainment International Ltd. (http://www.ceihk.com/) has been a leader in China entertainment industry engaging in the production and publication of movies, TV programs and 3D animations, averaging about 120 TV programs and 2 movies annually, and has produced more than 800 hours of TV program contents. About PacificNet PacificNet Inc. (http://www.PacificNet.com), through its subsidiaries, invests in and operates companies that provide Outsourcing and Value-Added Services (VAS) in China, such as call centers, telemarketing, CRM, IVR, mobile applications, and communications product distribution services. PacificNets clients include the leading telecos, banks, insurance, travel, marketing, and business services companies, and telecom consumers, in Greater China. PacificNets corporate clients include China Telecom, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, SONY, TCL, Huawei, American Express, Citibank, Bank of China, and Hong Kong Government. PacificNet employs over 2,000 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, and branch offices in 26 provinces in China, and is headquartered in Minneapolis USA and Hong Kong. About Guangzhou 3G Guangzhou 3G Information Technology Co., Ltd. ("Guangzhou 3G", http://www.vs366.com) is a subsidiary of PacificNet. Guangzhou 3G is one of the largest value-added telecom and information services providers in China with both voice (IVR and call center) and data (SMS, MMS, WAP, JAVA, GPRS) connection to the four major telecom operators: China Mobile, China Unicom, China Telecom, and China Netcom, covering both mobile and fixed-line networks. Guangzhou 3G also offers a wide variety of IVR and other wireless and fixed-line value-added telecom services including color ring back tone (CRBT) services, background music (BGM) services, VICQ mobile instant messaging services, sports and soccer news, weather forecasts, stock prices, jokes, short stories, dramas, songs and mobile karaoke, mobile TV, video and movies, games, entertainment, as well as community-oriented services, such as chatline and dating services. Mobile and fixed-line phone users can access Guangzhou 3G IVR services through one of the four major telecom operators networks. Guangzhou 3G currently employs 238 staff, and has offices in 26 provinces in China including Guangdong, Guangxi, Hubei, Hunan, Jiangsu, Zhejiang, Shanghai, Henan, Anhui, Yunnan, Gansu, Ningxia, Inner Mongolia, Guizhou, Tianjin, Qinghai, Hainan, Heilongjiang, Shanxi, Shandong, Chongqing, Jiangxi, Beijing, Hebei, Liaoning, and Jilin. Guangzhou 3Gs market covers all the major regions of China with over 3 million accumulated fee paying customers. Safe Harbor Statement This Companys announcement contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Potential risks and uncertainties include, but are not limited to, PacificNets historical and possible future losses, limited operating history, uncertain regulatory landscape in China, fluctuations in quarterly operating results. Further information regarding these and other risks is included in PacificNets Form 10K and other filings with the SEC. Contacts: PacificNet USA office: Jacob Lakhany, Tel: +1-605-229-6678, investor@pacificnet.com PacificNet Beijing office: Ada Yu, Tel: +86 (10) 64954330 ext 158 23/F, Tower A, TimeCourt, No.6 Shuguang Xili, Chaoyang District, Beijing, China 100028 Guangzhou 3G (iPACT) office: 15/F, Building A, Huajian Plaza, No. 233 Tianfu Road, Tianhe District, Guangzhou, China, Postal Code: 510630; Tel: +86 (20) 85613432 or CEOcast, Inc. for PacificNet Ed Lewis, 212-732-4300

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