PacificNet Announces the Opening of New Macau Office to Focus on the Rapidly Growing Macau Gaming & Entertainment Market

PacificNet Announces the Opening of New Macau Office to Focus on the Rapidly Growing Macau Gaming & Entertainment Market

MACAO, China, Sept. 6 /Xinhua-PRNewswire/ -- PacificNet Inc. (NASDAQ:PACT), a leading provider of Customer Relationship Management (CRM) and telemarketing services, call center, e-commerce, and Value-Added Services (VAS) in China, announced today that it has opened an office in Macau to focus on the rapidly expanding gaming and entertainment industries in that region. The Macau office is located at Av. Do Dr. R. Rodrigues No. 600E, Edif, First International Commercial Centre, P906, Macau Special Administrative Region, China. This location is adjacent to the new Galaxy StarWorld Hotel and is minutes from both the Wynn and Sands Casinos. PacificNet's senior management team including Tony Tong, Chairman and CEO; Victor Tong, President; and Joseph Levinson, CFO, will present an overview of the company's business at the Roth Capital Partners New York Conference on Thursday, September 7th, 2006 at 8:30 AM at the Westin Times Square Hotel in Times Square. For more info on the conference, please see http://www.rothconference.com/.

"We are very excited to be moving forward in our pursuit of the Macau gaming technology business," said Tony Tong, CEO of PacificNet. "The opening of our Macau office along with our recent acquisition of Able Entertainment Technology Ltd. will facilitate our rapid launch into this market. We feel the Asian gaming technology market has some amazing near-term growth potential and are very happy to add another diverse, yet profitable subsidiary to the PacificNet portfolio."

Macau is one of the fastest-growing gaming markets in the world and is predicted to surpass Las Vegas in total revenues by 2007. According to recent statistics provided by Macau government, in 2005, Macau's gaming revenues reached US$5.8 billion, second only to Las Vegas gaming revenues of US$6 billion. Macau borders Zhuhai City of Guangdong Province of China, one of the country's wealthiest and most developed regions and is an hour away from Hong Kong via ferry. The number of tourists visiting Macau reached 18.7 million in 2005, of which 56% or 10.5 million visitors were from mainland China. By 2010, the number of tourists is expected to nearly double to nearly 30 million visitors per year. Approximately one billion people live within a three-hour flight of Macau. Numerous hotel, gaming, and other projects are in the works in Macau which are expected to add over 10,000 guest rooms and over 20,000 live entertainment seats in eight separate venues. The number of hotel-casinos in operation and in development on Macau continues to grow, including well- known Chinese names such as Galaxy and Melco, and famous Las Vegas names such as the Sands, the Venetian, and the newly opened Wynn Resort, which celebrated its grand opening on September 6. With the disposable income of the average Chinese on the rise, Macau's gaming and entertainment market is expected to grow for years to come.

PacificNet recognizes Macau's remarkable growth potential and has opened an office in this location as a first step in entering this market. The bulk of Macau's current gaming revenue comes from VIP rooms and high-roller table games. As the market matures, it is predicted that lower stakes, electronic versions of these popular table games played by the masses will exceed the revenue of the table games, as in Las Vegas. This trend is already visible. PacificNet plans to aggressively pursue this market with the goal of being the leading provider of electronic adaptations of popular Asian casino table games. Macau is the only area in China where gambling is legal.

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, direct response television (DRTV) marketing, CRM, 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, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank of China, Bank of East Asia, DBS, TNT, and Hong Kong Government. PacificNet employs over 2,300 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, Macau, and branch offices in 26 provinces in China, and is headquartered in Beijing and Hong Kong.

About PacificNet Games Limited

PacificNet Games Limited is a leading provider of Chinese electronic gaming machines, gaming technology solutions and gaming related maintenance, IT, and distribution services for the leading hotel and casino operators based in the Macau Special Administrative Region of China and other Asian gaming markets. PacificNet Game's electronic gaming machines are among the few Chinese games approved by the Macao Gaming Commission of the Macao SAR Government. Macau is expected to surpass Las Vegas in total revenues by 2007. Currently, table games make up the bulk of Macau casino revenues, which is in sharp contrast to other areas such as Las Vegas. PacificNet Games Limited plans to pursue electronic versions of these popular table games which are less expensive to run resulting in higher casino profits. Further, the growing market in Macau is for Asian table games such as Baccarat, Fan Tan, and Sic Bo as these games have wider acceptance in the Asian market than Western games such as poker or slots. The development, manufacturing, maintenance, and service of electronic Asian table games are underserved areas which are predicted to grow considerably as Macau's gaming market matures.

Safe Harbor Statement

This Company's 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, PacificNet's 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 PacificNet's Form 10K and other filings with the SEC.

Contact:
PacificNet USA office: Jacob Lakhany, Tel: +1-605-229-6678
PacificNet Beijing office: Ada Yu, Tel: +86 (10) 59225000

Source: PacificNet Inc.

CONTACT: PacificNet USA office - Jacob Lakhany, +1-605-229-6678;
PacificNet Beijing office - Ada Yu, +86-10-59225000

Web site: http://www.pacificnet.com/
http://www.rothconference.com/

-------
Profile: intent