PacificNet Epro Acquires Guangzhou JunFeng Call Center and Expands Call Center Investment in Guangzhou, China; Acquisition to be Additive to Future Earnings.

GUANGZHOU, China -- 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 PacificNet Epro ("Epro") subsidiary has acquired a 70% ownership interest in Guangzhou JunFeng Network Technology Co. Ltd. (JunFeng). The purchase price will be paid for via PacificNet Epro's existing cash. The acquisition is expected to be additive to Epro's 2006 earnings.

JunFeng is a call center and value-added telecom service provider based in Guangzhou that owns various Value-Added Services (VAS) and call center licenses. These licenses are instrumental for PacificNet to develop contact center business in China. A wide array of supporting services are provided, including professional inbound services, outbound services, facilities management and IVRS support services, to meet clients' diversified needs.

Due to the recent increase in the demand for telemarketing and call center services, PacificNet Epro recently announced the purchase of a new 250-seat call center facility in China, to support the rapidly growing business of the company. The new contact center is located in a Grade-A office building in Guangzhou, occupying one floor with over 18,000 sq. ft. This new site will supplement the existing 400-seat, 800-agents call center facility in Hong Kong, which has been operating at or above full capacity for the past year. The combined Hong Kong-China operation will expand Epro's total call center capacity to 650 seats and over 1,200 agents, serving existing and new clients in both Hong Kong and mainland China.

Epro believes that the contact center expansion in Guangzhou will lead to over 40% annual revenue growth in the coming years. Furthermore, the new facility in China should lead to growth in profit margin because the labor cost and office facility is less than half of the cost in Hong Kong. To date, PacificNet Epro has invested RMB 10 million for the initial set up of the new Guangzhou contact center site occupying over 18,000 sq. ft. for hosting more than 250 seats, and plans to invest another RMB 10 million for the second stage expansion.

"This acquisition, plus our new investment in the Guangzhou call center facility, is expected to create further efficiencies in our contact center operations and create new revenue streams from PRC domestic and multinational clients," said Telly Wong, Managing Director of PacificNet Epro. "We expect increasing cross-border business opportunities as Epro is building a diversified business platform in both Hong Kong and China capable of capturing a larger share of the CRM contact center services market. We are confident that the acquisition of Guangzhou JunFeng will considerably strengthen the expansion of PacificNet Epro's contact center business, and position the company favorably in the fast growing CRM call center market in China. CRM contact centers have become the new competitive advantage among industries and we are well-equipped to benefit from this trend."

About PacificNet

PacificNet Inc. (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, 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, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, SONY, TCL, Huawei, American Express, Citibank, Bank of China, and Hong Kong Government. PacificNet employs over 1,500 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.

PacificNet Epro (www.EproTel.com.hk) is the industry leader and leading provider of outsourced call center, telemarketing, CRM, VAS and IVR services with over 15 years of field experience in greater China in the areas of outsourced call center services, training and consulting services, and call center management systems.