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PacificNet in strategic 3G deal with China Unicom

October 10, 2006

PacificNet, a provider of CRM and telemarketing services, e-commerce, gaming and Value-Added Services (VAS) in China, announced that it has taken another step in its strategy of capturing market opportunities with the impending launch of 3G in China.

PacificNet recently signed an agreement with China Unicom to become one of the designated value-added short message services (SMS) providers for Uni-Info, a recently launched mobile information service to service mass market China mobile users.

"We continue to believe in the huge market opportunities in wireless content. There are more than 100 million computer internet users in China, but 400 million mobile phone users. We believe that companies that can capture the attention of the mobile phone users will come out on top, and we are acting aggressively to put us in a position to win," said Tony Tong, Chairman and CEO of PacificNet.

Mr. Tong added, "In our content business, it continues to be the company's policy to avoid providing illicit and unethical SPAM content which has gotten some of our competitors in trouble with governmental authorities. We believe that our content model is the right way to do business, and I continue to stress the importance of this policy for our company. We believe that our continued focus on non-controversial content is one reason why China Unicom has chosen to partner with us on this project."

Uni-Info is an SMS-based information subscription and delivery-on-demand service launched by China Unicom and is now available to its GSM and CDMA phone users. Its content offerings include a wide variety of services such as entertainment and financial information, as well as interactive gaming and dating, enabling its subscribers to enjoy the convenience and access to first-hand information via SMS in over 20 provinces and cities in China.

"We continue to believe in the favorable economics of the value-added telecom services such as wireless content," said Mr. Joseph Levinson, CFO of PacificNet. PacificNet plans to maintain its competitive advantage in China's customer services market through strategic investment, acquisition, and joint venture opportunities which will continue to increase our customer base."

 

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