PacificNet Announces VAS Value Chain Integration and VAS-Alliance Marketing Strategy at the Second Quarterly Synergy Development Conference.

HONG KONG -- PacificNet Inc. (Nasdaq:PACT):

--Promotion of Mr. Telly Wong, CEO of PacificNet Epro, to the position of Vice President of PacificNet CRM Outsourcing Services Group.

--Promotion of Mr. Yongchao Wang, General Manager of Guangzhou 3G, to the position of Vice President of PacificNet VAS Group.

PacificNet Inc. (Nasdaq:PACT), a leading provider of call center, customer relationship management (CRM), and value-added telecom services (VAS) in China, announced today results of its Second Quarterly Management Strategy and Synergy Development Conference and its new VAS Value Chain Integration and VAS-Alliance platform development and marketing strategy in China.

The focus of conference is cooperation and synergy development within the company to maximize company's marketing and sales channels while sharing resources. Topics covered include business model analysis, market positioning, cost control, sales and marketing, as well as in depth discussion on company-wide sharing of sales contacts and channels, coverage territory, and sales & marketing resources to maximize company profit and efficiency. Forty-five senior management staff from PacificNet and the following PacificNet subsidiaries attended the conference:

--Linkhead, a leading platform provider for interactive voice response (IVR), chat-line, and Color Ring-back Tone (CRBT), and voice VAS services in China.

--Guangzhou 3G Information Technology ("GZ3G", www.VS366.com) a leading value-added telecom, IVR and information services providers in China employing over 280 staff and has offices in 26 provinces in China.

--Clickcom (www.mo168.com) is a leading VAS and mobile internet company in China which offers a wide variety of wireless internet services such as SMS, WAP, and Java mobile applications.

--PacificNet Epro (www.EproTel.com.hk) is a leading provider of outsourced call center, telemarketing, CRM, IVR services with over 13 years of CRM operation experience in Greater China and employs over 600 staff.

--Smartime (aka Soluteck) is a leading provider of outsourcing services including software development, R&D, and project management services in China, with over 280 staff and provides outsourcing services to the leading telecom, banking and financial services companies in China.

PacificNet's VAS Value Chain Integration and VAS-Alliance Marketing Strategy

A key conclusion of the conference was an integration plan in the VAS value chain and the deployment of a new VAS-Alliance platform provider using an alliance franchise model for sales and marketing in China.

VAS Value Chain Integration:

Platform Provider (PP) + Equipment Provider (EP) + Application Provider (AP) (Linkhead (PP/EP), Smartime/Soluteck (AP))

Service Provider (SP) (GZ3G, Clickcom)

Content Provider (CP) (GZ3G & Partners)

Operator (OP) (China Mobile, China Telecom, Unicom, Netcom, etc.)

Terminal Device Provider (DP) (YueShen, Cheer Era)

Telecom Subscribers or Consumers (China's 300 million telecom subscribers)

VAS-Alliance Strategy:

PacificNet's Guangzhou 3G and Linkhead will lead the development of a new VAS-Alliance to sign up qualified VAS service provider as profit sharing members in China. PacificNet will provide to qualified VAS-Alliance partners, on a profit sharing basis, all the startup hardware, software, application, and content for VAS, including a variety of IVR and other wireless and fixed-line VAS content including 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, games, entertainment, as well as community-oriented services, such as chatline and dating services. Mobile and fixed-line phone users can access PacificNet's VAS-Alliance services through Guangzhou 3G presence in 26 provinces in China.

Corporate Infrastructure and Human Resources Development

To address the infrastructure weaknesses identified in Q1 Strategy Conference, the Company has initiated the following actions starting in Q2:

1) Corporate infrastructure development:

(a) Development of a corporate wide virtual private network (VPN), office automation (OA) platform via secured corporate intranet.

(b) Implementation of a corporate wide standard accounting system based on Microsoft's Great Plains Accounting Software, with multi-company consolidation and multi-currency features.

2) HR Development:

Promotion of key leaders and business operation talents from the best performing subsidiaries to the PacificNet corporate level, and hiring of new and experienced corporate finance and accounting management team with key experiences in: Sarbanes-Oxley internal control audit, US GAAP accounting and audit, corporate finance, SEC rules.

At the conference, Chairman and CEO Tony Tong announced the following new promotions:

--Promotion of Telly Wong, CEO of PacificNet Epro, to the position of Vice President of PacificNet CRM Outsourcing Services Group. Mr. Wong is a co-founder of Epro and has been the CEO of Epro for the past 13 years. Prior to Epro, he was the Management Information System Manager of Star Paging Ltd, one of the largest paging operators in Hong Kong. Mr. Wong, holds a Master Degree in Business Administration.

--Promotion of Mr. Yongchao Wang, CEO of Guangzhou 3G, to the position of Vice President of PacificNet VAS Group. Mr. Wang began his career in 1994 with Guangdong Suntek Information Company Ltd. (GD Suntek), the first privately operated voice information service provider in China. In 1999, Mr. Wang was promoted to the Deputy General Manager of GD Suntek and was responsible for building GD Suntek as one of the largest voice information service providers in China with 25 branches nationwide with over RMB 100 million annual revenue. In 2000, Mr. Wang co-founded Guangzhou Sunroom Information Ltd. (GZ Sunroom), focusing on wireless value-added services. As the CEO, Mr. Wang established GZ Sunroom as one of the largest voice value-added service providers in China with an alliance partnership with China Mobile's Monternet in 27 cities. Mr. Wang received the B.A. in Business Administration from Jinan University in Guangzhou in 1994.

About PacificNet

PacificNet Inc. (www.PacificNet.com; NASDAQ:PACT), through its subsidiaries, invests in and operates companies that provide Outsourcing and Value-Added Services (VAS) in China, such as call centers, telemarketing, CRM, business process outsourcing (BPO), interactive voice response (IVR), mobile applications, and communications product distribution services. PacificNet's clients include the leading telecos, banks, insurance, travel, marketing, and business services companies, and telecom consumers, in Greater China. PacificNet's corporate clients include China Telecom, Netcom, China Mobile, Unicom, PCCW, Hutchison Telecom, Coca-Cola, Bell24, SONY, Samsung, TCL, Huawei, TNT Express, American Express, Citibank, Bank of China, DBS, Hong Kong Government, and Hongkong Post. PacificNet is headquartered in Minneapolis USA and Hong Kong employs over 1,200 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, Macau, Guangdong, Guangxi, Hubei, Hunan, Jiangsu, Zhejiang, Shanghai, Henan, Anhui, Yunnan, Gansu, Ningxia, Inner Mongolia, Guizhou, Tianjin, Qinghai, Hainan, Heilongjiang, Shanxi, Chongqing, Jiangxi, Hebei, Liaoning, and Jilin.