PacificNet Games Receives Interactive Gaming License in the Philippines - Leading Internet Gaming Jurisdiction in Asia

* Company Positioned to Become a Leading Internet Game Technology Provider for

iGaming Operators in Asia * New Products Expand Reach from Land-based Casino Technology Provider to Online e-Gaming Software Provider for Asian Operators * Company to Leverage its Advantage in Asian CRM, E-commerce, Internet and Mobile Operations

MACAU, China, July 10 /Xinhua-PRNewswire/ -- PacificNet, Inc. , a leading provider of gaming and mobile game technology, e- commerce, and Customer Relationship Management (CRM) in China, announced today that its subsidiary PacGames Limited has been granted an Internet gaming license by the First Cagayan and Cagayan Economic Zone Authority (CEZA) of the Philippines.

"We are delighted to receive approval on our internet gaming license application," said Tony Tong, Chairman and CEO of PacificNet. "Our games are focused on Asian gamers and the rapidly growing Asian internet gaming market. The approval of this internet gaming license by a leading Asian internet gaming jurisdiction demonstrates our progress in becoming a leading technology provider for the gaming industry, both online and land-based. Asia has evolved into the fastest growing market in both land-based and online gaming and as such, we believe there is a great demand for our Asian-themed gaming products. With our team of 200 programmers in China and Macau we believe our games will better meet the demand of Asian gamers and operators than those of our competitors in both land-based casinos as well as online."

"The move into online internet games is a natural expansion for PacificNet to expand its synergy with many of its operating subsidiaries in CRM as well as internet/mobile partners such as Epro and Bell-PACT CRM call centers, PacGames, WAP.MOABC.com, iMobile.com.cn, 18900.com, vs366.com, and Clickcom.com.cn, among others," said Victor Tong, President of PacificNet. "PacificNet's subsidiary, MOABC.com, is a leading mobile internet portal in China with 11 million registered users and boasts one of the top-ranked mobile internet sites, featuring mobile social networking, mobile games, and entertainment. This free WAP portal provides a variety of mobile internet services to over 11 million registered users in the all-important demographic of young and trendy mobile users in China. We believe that China's internet, mobile gaming and entertainment market will surge in the coming years as a result of the expected launch of 3G services. As such, we believe the addition of online gaming will compliment our existing businesses allowing us to leverage our user base and provide a new and very exciting revenue producer going forward."

First Cagayan of the Philippines is Cagayan Economic Zone Authority's (CEZA) duly appointed Master Licensor for Internet gaming operations. First Cagayan, on behalf of CEZA, processes applications from and, upon approval, issues licenses to international operators seeking to locate within CSEZFP. As Master Licensor, First Cagayan also regulates and monitors all Internet gaming related activities to ensure compliance with established rules and regulations governing operations. According to information from CEZA, interactive gaming licenses issued by Asia's first and only Internet gaming jurisdiction now totals 43, which is 14 more than the last count of 29 in 2006. First Cagayan of the Philippines actively markets the Cagayan Freeport as the gateway to the Asian gaming market in recent years with its reputation for fair and balanced regulation, as well as innovative products and services in the online gaming market.

PacificNet Games recently made a successful presentation of its latest land-based and internet gaming products at the Global Gaming Expo ( http://www.g2easia.com/ ) in Macau. PacificNet's new iGaming software designed for Asian players and operators received rave reviews from some of the leading casino and iGaming operators in Asia including praise from the leading gaming operators in Macau and the Philippines. PacificNet Games also shared its Macau success story of its high-return multi-player games for Asian players at the show.

About PacificNet

PacificNet, Inc. ( http://www.pacificnet.com/ ) is a leading provider of gaming and mobile game technology, e-commerce, 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 ecommerce 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.

Gaming Products:

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's 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 Machines -- Bingo and Keno Machines -- Video Lottery Terminals (VLTs) -- Server-Based Gaming Machines (SBG) -- Amusement with Prizes (AWP) Machines -- Online iGaming Software Development -- Client-Server Gaming Systems -- CMM Level 3 Certified Gaming Software Development Center in China with 200 Professional Software Developers -- Gaming Systems, Cabinet Design and Sales, Parts Sales, OEM Games. PacificNet's Business Units: 1. Gaming Technology: Electronic Gaming Machines, Mobile Games, i-Gaming Software. 2. Legacy Business: CRM, E-commerce and Telecom Products PacificNet's Major Operation Subsidiaries: -- PacificNet Games Limited (PacGames), is a leading provider of Asian multi-player electronic gaming machines, gaming technology solutions, gaming related maintenance, IT and distribution services for the leading hotel, casino and slot hall operators based in Macau, China and other Asian gaming markets. -- Take1 Technologies ( http://www.take1technologies.com/ ), is in the business of designing and manufacturing electronic multimedia entertainment kiosks, coin-op kiosks and machines, Electronic Gaming Machines (EGM), bingo and slot machines, AWP (Amusements With Prizes) games, server- based downloadable games systems, and Video Lottery Terminals (VLT) such as Keno and Bingo machines, including hardware, software, and cabinets. -- Pacific Solutions Technology, is a CMM Level 3 certified software development center with over 200 software programmers located in Shenzhen, China, and specializes in the development of client-server systems, internet e-commerce software, online and casino gaming systems and slot machines, as well as banking and telecom applications using Microsoft Visual C++, Java, and other rapid application development tools. -- PacificNet Epro ( http://www.eprotel.com.hk)/ CRM Call Center and Customer Services Outsourcing -- PacificNet Clickcom ( http://www.clickcom.com.cn/ ), MOABC.com: VAS,SP,(SMS,WAP) -- Guangzhou Wanrong ( http://www.my2388.com)/ VAS, SP, (SMS,MMS,IVR,WAP, Java Games) -- PacificNet Communications Limited, iMobile, ( http://www.imobile.com.cn/ , http://www.18900.com/ , wap.17wap.com) 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.

Contact: PacificNet USA office: Jacob Lakhany, Tel: +1-605-229-6678 PacificNet Beijing office: Ada Yu, Tel: +86 (10) 59225000 23rd Floor, Building A, TimeCourt, No.6 Shuguang Xili, Chaoyang District, Beijing, China 100028 PacificNet Shenzhen Office: Tel: +86 (10) 33222088 Room 4203, JinZhongHuan Business Center, Futian District, Shenzhen, China 518040 PacificNet Macau office: Tel: +853 28704154 Unit A-C, 12th Floor, Edificio Commercial I Tak, No. 126, Rua Da Pequim, Macau, China.