PacificNet Launches iPACT at China's 2005 Voice Value-added Service Conference; New IVR-Alliance Program to Capitalize on Growing Popularity of Value-Added Telecom Services.

BEIJING -- PacificNet Inc. (Nasdaq:PACT) announced today that it has launched its new IVR-Alliance program called "iPACT" at the 2005 Voice Value-added Service (VAS) Conference, the leading event for value-added telecom services in China. The event was sponsored by the Value-added Service Committee (VASC) of the China Association of Communication Enterprise (CACE). The conference was held in Beijing and was widely attended by government leaders, the Ministry of Information Industry (MII), leading telecom operators, VAS content providers as well as service providers, industry experts, technology vendors, analysts, partners and customers of PacificNet in the VAS market. The main purpose of the conference was for the leading VAS industry players to share their knowledge and experience on the opportunities and challenges of China's Voice VAS industry.

Under this iPACT program, PacificNet plans to sign up qualified Voice-VAS and IVR service providers as profit sharing members in China under a unified brand "iPACT". PacificNet will provide to qualified VAS-Alliance partners, on a profit sharing basis, all of the 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.

"We have acquired the leading enterprises on VAS and IVR such as Epro, Linkhead, Clickcom and 3G to build a powerful platform," said Tony Tong, Chairman & CEO of PacificNet. "We believe the market of VAS and IVR is considerable. We will continue to invest in this field. We hope to be the leading provider of Voice based technology, software, content, and telecom VAS in a short time. The strategic acquisition of Guangzhou 3G and Clickcom signifies PacificNet's intention to capture part of the rapidly growing VAS market in China. We believe we are well positioned for significant revenue growth in 2005 as a result of our expanded VAS offerings through our subsidiaries in China. We are planning further strategic moves in the VAS market to increase our sales distribution channels, revenue and profitability."

Yang Ping, Secretary General of the Value-added Service Committee (VASC) of the China Association of Communication Enterprise (CACE) stated, "We hope this conference can provide a unified platform for enterprises and provide more value through mutual cooperation. The demand and popularity of IVR, chatline, and other voice-based, value-added telecom services are growing rapidly and we expect that they will surpass SMS as the key contributor to future ARPU growth for the telecom operators in China. PacificNet and Linkhead have demonstrated their leadership roles in the VAS industry and we thank them for their support for this event and for sharing their valuable experience with other VAS players in China."

Mr. Brian Lin, Vice President of PacificNet China and CEO of Linkhead, stated, "As a founding member and a member of the board of directors of the VASC, we plan to continue to support the promotion of value-added services in China. Over the last 10 years, Linkhead has pioneered many new enhanced services, solution introductions, and deployments and has served hundreds of customers including carriers, service providers, equipment vendors, and system integrators. With the growing market demand for IVR and other voice related value-added services in China, the strong financial support of PacificNet, and the innovative IVR product offerings from Guangzhou 3G, we are confident about the future in China's IVR industry. "

Mr. Yongchao Wang, Vice President of PacificNet VAS Group and General Manager of Guangzhou 3G, stated that, "With the launch of the iPACT IVR-Alliance program, we hope to rapidly sign up many new local IVR service providers to join our unified brand and strong IVR content and service offerings, under a chain of unified service standard under the iPACT brand. We look forward to revenue growth, market share improvement, and stronger partnerships with all the telecom operators and local IVR service providers in China."

About The Value-Added Service Committee (VASC)

The Value-Added Service Committee (VASC) (www.newtele.com) affiliated with China Association of Communication Enterprise (CACE) is under the direction of China's Ministry of Information Industry (MII). Founded in December 2002, the VASC Committee is composed of multi-organizations, including enterprises, companies and other organizations (such as, academic societies, publishing houses, etc.) who participate in China's telecom value-added services. The deputy steering committee membership is composed of the leading figures of carriers and service operators, including China Telecom, China Netcom, China Mobile, China Unicom, China Satcom, and China Railcom.

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 telecoms, 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, American Express, Citibank, Bank of China, and Hong Kong Government. PacificNet employs over 1,200 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's Major VAS Operating Subsidiaries:

--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.

--PacificNet Clickcom (www.clickcom.com.cn, http://wap.mo168.com) is a leading mobile internet and value added service providers in China, serving the four operators including China Mobile, China Unicom, China Telecom, and China Netcom. Clickcom offers a wide variety of wireless internet services such as SMS, WAP, and Java mobile applications.

--PacificNet Epro (www.EproTel.com.hk) is the industry leader and leading provider of outsourced call center, telemarketing, CRM, SMS, Interactive voice response (IVR) services, and other value-added telecom services (VAS) with over 13 years of field experience in Greater China in Outsourced Call Center Services, Training and Consulting Services, and Call Center Management Systems which include the WISE-xb Call Center agent performance, management, and reporting software, and Automatic Call Distribution (ACD) System. Epro employs over 600 staff in Hong Kong and China.

This news release contains forward-looking statements. Actual results may differ from any forward-looking statements contained in this news release due to a number of factors that could adversely affect PacificNet's business, financial condition, operating results and stock price.