PacificNet receives Casino Lisboa order

12 December 2006

BEIJING, China –- (PRESS RELEASE) -- PacificNet Inc. (Nasdaq: PACT), a leading provider of Customer Relationship Management (CRM), mobile internet, e-commerce and gaming technology in China, announced today that its PacificNet Games Limited (PacGames) subsidiary has been selected by Casino Lisboa, one of Macau's leading and most historic casinos, to provide multi-player Electronic Gaming Machines (EGM). Phase one implementation includes 120 multi-player electronic gaming machines. Terms of the agreement were not disclosed for competitive reasons.

Casino Lisboa is one of the most famous casinos in Macau, People's Republic of China. The original Casino Lisboa main complex and 12 story round hotel tower were built in the late 1960s by Dr. Stanley Ho, Teddy Yip, Yip Hon and Dr. Henry Fok. Since then, Macau has grown considerably, often being called the "Monte Carlo of the Orient". Casino Lisboa has become an icon as one of the most famous landmark hotels of Macau. A 270 room extension was added in 1991 for a total of 927 rooms. Currently, another extension, called the Grand Lisboa, is under construction and is located next to the original Casino Lisboa and the Wynn Casino. Casino Lisboa is now operating under Macau's gaming concessions granted under Sociedade de Jogos de Macau (SJM), which is a leading gaming concessionaire in Macau controlled by Dr. Stanley Ho's Sociedade de Turismo e Diversoes de Macau (STDM).

"We are delighted to receive another significant order from one of the most famous casinos in Macau. The selection of PacificNet Game's electronic gaming machines by Casino Lisboa marks another huge win for PacGames and further enhances PacificNet's strong position in Macau's gaming market," said Tony Tong, Chairman and CEO of PacificNet. "With our new focus on the rapidly growing gaming market in greater China, Macau, and Asia, we will continue the pursuit of becoming a leading technology and service provider to the casino operators and gaming industry in Asia. We believe we have the right gaming products, research and development center with CMM Level 3 certification, local service staff, the right channels and partnerships, and the experience that is necessary to succeed in this market."

"As Macau's gaming market undergoes growing competition, casino operators in Macau have to adapt fast to the latest demands and trends by installing the most popular and profitable gaming machines catering to the Asian gamers. PacGames multi-play electronic gaming machines have quickly proven to be one of the best performing gaming machines designed for the Asian players," said Victor Tong, President of PacificNet. "Macau has become the fastest growing part of China and we are very excited to be moving forward in our pursuit of the Macau gaming technology business. We believe that the Asian gaming market has huge growth potential and we are well positioned to win more hotel-casino clients and capture a growing market share as a leading gaming technology provider in the region."

According to recent statistics provided by the Macau government, Macau is one of the fastest-growing gaming markets in the world and is predicted to surpass Las Vegas in total revenues by 2007. In 2005, Macau's gaming revenues reached US$5.8 billion, second only to Las Vegas gaming revenues of US$6 billion. Macao's casinos offer the largest variety of casino games anywhere in the world, combining both established western favorites with popular eastern games such as blackjack, baccarat, pai kao, roulette, boulette, boule, "Big and small" fantan and pacapio. A vast assortment of slot machines and a growing number of electronic table games are also available, often computer- linked for progressive jackpot payouts. The number of hotel-casinos in operation and in development in 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. Macau is the only area in China where gambling is legal.