PacificNet to Launch New Software Development Outsourcing Center to Serve Company’s Existing Enterprise Clients

SHENZHEN, CHINA -- 12/03/2004 -- While presenting at the China IT Outsourcing Forum today, PacificNet Inc. (NASDAQ: PACT) announced that its PacificNet Solutions (aka Smartime) IT outsourcing subsidiary will launch a new software development outsourcing center in Shenzhen which will begin operations this month. The new software development center is located in a Grade A office building in Shenzhen, occupying two floors initially (total 26,000 square feet) with capacity to expand to two additional floors. Each of the two floors will have the capacity to house about 200 employees. The new outsourcing development center will serve its existing clients, including some of the world’s leading telecom and IT companies. Initially, the operation will have 200 employees, with plans to expand the staff significantly within one year.

“After emerging as the world’s leading manufacturing center, China is quickly emerging as a leading outsourcing center for service jobs,” said Tony Tong, Chairman and CEO of PacificNet. “China’s huge domestic market and high growth economy has a big advantage over India, which must rely completely on service exports. The demand continues to grow for outsourcing services, including business process outsourcing (BPO) such as call center, CRM, back-office workflow, data entry, translation and localization and IT outsourcing (ITO) such as software development, testing. We believe, through our 10 plus years as a leader in BPO and ITO in Hong Kong and China, that PacificNet is well positioned to capture this rapidly growing demand for outsourcing services in China.”

The Company and Mr. Tong were recently recognized for their success in providing call center solutions. Mr. Tong was recently elected as the Vice Chairman of the Hong Kong Call Center Association (PRD). PacificNet was also the winner of the Off-shore Call Center Merit Award by the Hong Kong Call Center Association in 2003.

About PacificNet

PacificNet Inc. (www.PacificNet.com), through its subsidiaries, invests in and operates companies that provide outsourcing and value-added services (VAS) and solutions in China, such as call centers, telemarketing, customer relationship management (CRM), business process outsourcing (BPO) and software development outsourcing, interactive voice response (IVR), mobile applications, and sales and distribution of telecom products and services. PacificNet’s clients include the leading telecom operators, banks, insurance, travel, marketing, and service companies, as well as telecom consumers, in Greater China. Clients include China Telecom, China Netcom, China Mobile, China Unicom, PCCW, Hutchison Telecom, CSL, SmarTone, Sunday, Swire Travel, Coca-Cola, SONY, Samsung, TNT Express, Huawei, TCL, Dun & Bradstreet, American Express, Bank of China, DBS, Hong Kong Government, and Hongkong Post. PacificNet employs over 1000 staff in its various subsidiaries through China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, and Shandong.

PacificNet’s operations include the following three groups:

(1) Outsourcing Services: including Business Process Outsourcing (BPO), call center, IT Outsourcing (ITO) and software development services.

(2) Value-Added Telecom Services (VAS): including Interactive Voice Response (IVR), SMS and related VAS.

(3) Communication Products Distribution Services: including calling cards, GSM/ CDMA/ XiaoLingTong products, multimedia self-service Kiosks.

PacificNet’s outsourcing business units include ITO and BPO:

1. IT Outsourcing (ITO)

PacificNet Solutions (aka Smartime) is a leading provider of outsourcing services including software development, R&D, and project management services in China, employs over 200 staff and provides outsourcing services to the leading telecom, banking and financial services companies including Huawei, IBM, Bank of East Asia, etc.

2. Business Process Outsourcing (BPO)

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. Epro Telecom’s business consists of the following three major categories:

1. Outsourced Call Center Services:

Epro’s ISO 9001 certified outsourcing contact center hosts over 1000 workstations staffed by 600 agents and provides 24x7x365 multi-lingual inbound and outbound services.

2. Training and Consulting Services:

The Epro Call Center Training Institute (ECCTI) is a leading provider of contact center management consulting and training services that help clients maximize the return on investment in their CRM operations.

3. Call Center Management Software Products and Solutions:

Epro’s software products include: WISE-xb Call Center agent performance, management, and reporting software, and Automatic Call Distribution (ACD) System, UMS, and SMS.

Contact Information

Jacob Lakhany

N/A

PacificNet, Inc.

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