PacificNet Inc. (Nasdaq: PACT - News), a leading provider of Value-Added Services (VAS), Interactive Voice Response (IVR) platform, CRM and telemarketing services in China, announced today that its subsidiary Guangzhou Wanrong Information Technology Co., Ltd. (”Guangzhou Wanrong,” http://www.my2388.com), one of the leading providers of mobile applications and value-added telecom services in China, was awarded the “Most Promising Enterprise” by Guangdong Software Industry Association (http://www.gdsia.org.cn).

Guangzhou Wanrong’s mobile applications include SMS, WAP, JAVA, MMS, IVR, multimedia entertainment download services, media interactive products, mobile email services, life, sports, entertainment, and business information services. Guangzhou Wanrong was granted nationwide SMS service numbers “2388″ for China Mobile and “9928″ for China Unicom. Wanrong has developed a close cooperation partnership with the four major operators of China Mobile, China Unicom, China Telecom and China Netcom. Wanrong has set up a nationwide services network with branch offices in Jilin, Shanxi, Jiangsu, Sichuan, Qinghai, etc. Its value-added services include SMS, WAP, JAVA, MMS, IVR, Mobile Email, etc., covering the six regions of China, including Southern China, Southwest, Northern China, Northeast, Northwest, and Eastern China. Wanrong’s integrated value-added mobile services system is valuable for the implementation of PacificNet’s “iPACT” program, a standard service-mark for PacificNet’s VAS profit-sharing alliance partnership program.

Guangzhou Wanrong’s mobile VAS products include:

1. Multi-media Entertainment Download Center which allows users to download flash, picture, ring-tone, CRBT, games, music and video.
2. Multi-media Interactive Service Platform which includes Audio and Video on Demand (VOD) services, interactive mobile karaoke and music order management services synchronized with live TV ordering and radio programming.
3. Mobile Email Service which provides mobile-phone based email services for the 5.5 million mobile phone users in Jilin Province. This service enables mobile users to synchronize his or her mobile phone number to a specified internet email address. Users can register an internet email address through mobile phones and the assigned email address will synchronize with the mobile number. Billing functions are included as service fees are automatically calculated and deducted from the user’s account or stored-value cards.

“We are delighted to receive this industry award by Guangdong Software Industry Association (GDSIA) in recognition of our mobile VAS software innovation,” said Han Zhixin, General Manager of Guangzhou Wanrong. “We continue to devote ourselves in developing innovative mobile applications and value-added telecom services targeting the 400 million mobile users in China. The anticipated launch of 3G services in China later this year is expected to create new VAS profit opportunities for us as well as our overall iPACT VAS program. We look forward to the launch of 3G services in China as we expect it will drive the demand for PacificNet’s iPACT, CRM, IVR, and VAS services. We are well positioned to capture the business opportunities in China’s future 3G services market.”

Tony Tong, CEO of PacificNet, stated: “We are impressed by the experience of Wanrong’s team of VAS professionals and their continuous drive for technology innovation in the VAS mobile application area. Wanrong’s nationwide VAS licenses and customer service numbers covering China represent an opportunity to enhance PacificNet’s iPACT VAS network in China. The acquisition of Wanrong in Q1 of 2006 is expected to expand PacificNet’s position as a leading provider of VAS in China and increase our VAS revenues, profits, and our nationwide service coverage.”

PacificNet has been an active player involved in providing VAS and CRM service in China, the world’s largest mobile user base with about 400 million mobile users. With China’s anticipated 3G launch, the stakes are high and the opportunities are immense for new 3G value-added services. Telecom users in China can experience our iPACT VAS through our broad geographical presence and local VAS offerings in 27 provinces in China through our VAS operating subsidies including Guangzhou 3G, Clickcom, and Wanrong.

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 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, HSBC, Bank of China, Bank of East Asia, DBS, TNT, and Hong Kong Government. PacificNet employs over 2,500 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.