China Telecom (Jiangsu) Selects PacificNet Epro for CRM Telemarketing Services

- PacificNet Epro Selected by Jiangsu Telecom to Provide Customer Relationship Management (CRM) Consulting, Telemarketing Management and Call Center Training

Services

BEIJING, Oct. 8 /Xinhua-PRNewswire/ -- PacificNet Inc. , a leading provider of CRM, gaming and ecommerce services in China, announced today that its PacificNet Epro subsidiary has been selected by China Telecom's (NYSE: CHA ; http://www.chinatelecom.com.cn/) Jiangsu Branch to provide CRM and call center consulting services for China Telecom's "114" Information Directory Services, the leading information directory hotline service in China.

Under the project service agreement, PacificNet Epro is engaged to enhance the CRM service level and telemarketing management capability of Jiangsu Telecom's Information Directory Service called "114 Information Directory Hotline."

To align with the need of transforming 'cost-center' to 'profit center', Information Center 114 of China Telecom JiangSu has selected PacificNet Epro's CRM consultants to assist China Telecom's customer service supervisors and officers of all contact centers in the whole Jiangsu province, to enhance the overall management standard for the contact center. This comprehensive consulting project consists of the following deliverables: Development of Outsourcing Telemarketing Program, Call Center Workflow Design, Unified Workflow Management, Human Resources Management, Return on Investment (ROI), Critical Success Factors on Customer Affinity, Cross-Selling Development, Telemarketing Script Design, Customer Service Agent Role Playing Sessions and Voice-Log Case Studies.

"We are proud to be retained by China Telecom as its CRM contact center consulting and training provider," said Joyce Poon, General Manager of PacificNet Epro's CRM Consulting and Training Services Division. "We value the opportunity to work with China Telecom on this important project. We are confident that our telemarketing knowledge in China will help China Telecom improve their overall customer satisfaction. At the same time we are looking to increase the overall effectiveness of their telemarketing efforts to help them capture more cross-selling opportunities."

Tony Tong, Chairman and CEO of PacificNet, stated, "With over 15 years as a leading provider of telemarketing, CRM services and contact center management in Hong Kong and China, we believe PacificNet is well positioned to capture a significant share of this rapidly growing market. The growing number of leading service providers selecting us to enhance customer service operations reflects the evolving and highly competitive nature of the Chinese consumer market. This trend has contributed to the demand for CRM services and deployment of large scale customer contact centers. We believe that the CRM contact center has emerged as the new competitive advantage for the market leaders in China. To become a market leader in China, whether as a product or service provider, a company needs to devote resources to CRM and customer service."

The Ministry of Information Industry (MII) announced China's telecom industry statistics for 2007 through August. Revenue for China's telecom industry was 475.29 billion Yuan in August 2007, up 10.7 percent from the same period in 2006. Through the end of August 2007, the number of fixed-line phone users in China was 372.45 million, the number of handset users was 515.67 million and the number of broadband Internet users was 61.91 million. There are now 38.3 mobile phones and 28.4 fixed-line phones for every 100 people in China. According to the statistics, a total of 378.51 billion SMS were sent in China from January to August 2007, up 38.3 percent year-on-year.

China Mobile added 5.526 million new subscribers in June 2007 and added 31.15 million new subscribers in the first half of 2007. China Mobile had 332.38 million subscribers through the end of June 2007. China Unicom added 1.54 million new subscribers in June 2007, 3.3 percent less than in the previous month. Of the 1.537 million new subscribers, GSM subscribers accounted for 1.13 million, while CDMA subscribers accounted for 404,000. Through the end of June 2007, China Unicom had 151.6 million subscribers; of these, 112.57 million are GSM subscribers and 39 million are CDMA subscribers. China Telecom added 210,000 new fixed-line subscribers and 570,000 million new broadband subscribers in June for a total of 224.5 million fixed line subscribers and 32.19 million broadband subscribers.

About China Telecom

China Telecom (NYSE: CHA ; http://www.chinatelecom.com.cn/) is the largest fixed service telecommunications provider in China, which includes data, Internet, and the XiaoLingTong PAS wireless system. China Telecom is the leading provider of fixed line telecommunications services in China, providing voice, data, image, multimedia and telecommunications and information services in 20 municipalities, provinces and autonomous regions in China with a subscriber base exceeding 220 million on fixed line users and 32 million broadband users.

About PacificNet

PacificNet, Inc. (http://www.pacificnet.com/) is a leading provider of gaming and mobile game technology, ecommerce, and Customer Relationship Management (CRM) in China. PacificNet's gaming products are specially designed for Chinese and Asian gamers with focus on integrating localized Chinese and Asian themes and content, advanced graphics, digital sound effects and popular domestic music, with secondary bonus games and jackpots. PacificNet gaming products include: Multi-player Electronic Table Games -- Baccarat, Sicbo, Fish-Prawn-Crab, and Roulette machines, Server-Based Games (SBG) with multiple client betting stations, slot and bingo machines, Video Lottery Terminals (VLTs), Amusement With Prizes (AWP) machines, gaming cabinet and client/server system designs, online i-gaming software design, and multimedia entertainment kiosks. PacificNet's gaming clients include the leading hotels, casinos, and gaming operators in Macau, Asia, and Europe, while e-commerce and CRM clients include the leading telecom companies, banks, insurance, travel, marketing and business services companies and telecom consumers in Greater China such as China Telecom, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, Motorola, Nokia, SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank of China, Bank of East Asia, DBS, TNT, China and Hong Kong government. PacificNet employs about 1,200 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shanghai, Shenzhen, Guangzhou, Macau and Zhuhai China, USA and the Philippines.

About PacificNet Epro

A subsidiary of PacificNet, PacificNet Epro (http://www.eprotel.com.hk/) is the industry leader and leading provider of outsourced call center, telemarketing, CRM, VAS and IVR services with over 15 years of field experience in greater China in the areas of outsourced call center services, training and consulting services, and call center management systems.

Safe Harbor Statement

This Company's announcement contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the SEC on Forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders, in our proxy statements, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. 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, and fluctuations in quarterly and annual operating results. Further information regarding these and other risks is included in PacificNet's Form 10K and other filings with the SEC.

For more information, please contact: PacificNet USA office: Jacob Lakhany Tel: +1-605-229-6678 PacificNet Beijing office: Becky Zhao 23rd Floor, Building A, TimeCourt, No.6 Shuguang Xili, Chaoyang District, Beijing, China 100028 Tel: +86-10-5922-5000 PacificNet Shenzhen Office: Alin Chen Room 4203, JinZhongHuan Business Center, Futian District, Shenzhen, China 518040 Tel: +86-755-3322-2088 PacificNet Macau office: Unit A-C, 12th Floor, Edificio Commercial I Tak, No. 126, Rua Da Pequim, Macau, China Tel: +853-2870-4154