* PacificNet Games Limited Completes Acquisition of Able Entertainment
Technology Ltd. - Leading Electronic Gaming Machine Developer in Macau
Focusing on Chinese Games

Acquisition to be Accretive to 2006 Earnings

HONG KONG, Aug. 16 /Xinhua-PRNewswire/ -- PacificNet Inc. , a leading provider of Customer Relationship Management (CRM) and telemarketing services, call center, e-commerce, and Value-Added Services (VAS) in China, announced today that its subsidiary, PacificNet Games Limited has acquired Able Entertainment Technology Limited, a leading electronic gaming technology provider based in the Macau Special Administrative Region of China.

On August 3, 2006, PacificNet's wholly owned subsidiary PacificNet Games Limited (PacGames) completed the acquisition of 100% of Able Entertainment Technology Ltd., by exchanging 65% of the share ownership of PacificNet Games Limited and by the issuing of 200,000 restricted shares of PacificNet Inc. Upon completion of this transaction, PacificNet Inc. owns 35% of PacificNet Games Limited. Under the purchase agreement, Able Entertainment Technology Ltd. has committed to generate an audited annual profit of USD$1,600,000 and will provide for an adjustment to the purchase price if it does not achieve an annual net profit of USD$1,600,000 during the first 12-month period and USD$3,000,000 during the second 12-month period.

The consideration was paid as follows:
The purchase consideration for the entire amount of issued shares in Able Entertainment, i.e. 100,000 shares which represents 100% of the equity interest of Able Entertainment Technology Ltd., is 650 shares (representing 65% of the ownership interest in PacificNet Games Limited) of PacificNet Games Limited, a Special Purpose Vehicle (SPV) company registered in the BVI, plus the issuance of 200,000 restricted shares of PacificNet Inc. Able Entertainment Technology Ltd. has represented that it expects to generate USD$1,600,000 and will provide for an adjustment to the purchase price if it does not achieve an annual net profit of USD$1,600,000 during the first 12-month period and USD$3,000,000 during the second 12-month period. The purchase consideration is payable 100% in restricted shares of PACT, equivalent to 200,000 restricted PACT shares.

"We are very impressed by the experience of Able Entertainment Technology's founders and their team of electronic gaming machine designers and developers and their expertise in Macau's Chinese casino and gaming market," said Tony Tong, Chairman and CEO of PacificNet. "Able Entertainment's electronic gaming technology design and distribution services network and R&D center have a strong relationship and presence covering Macau, Zhuhai, and other emerging gaming cities in Asia. Their presence represents an opportunity to enhance PacificNet's CRM and value added services network to the new booming casino town of Macau and other emerging new Asian gaming and casino markets. The acquisition is expected to expand PacificNet's position as a leading provider of value-added technology services, customer services and CRM in China and increase our overall value-added revenues, profits, and our technology service coverage."

As a result of the acquisition of Able Entertainment Technology Limited, PacificNet Games Limited will become a leading provider of Chinese electronic gaming machines, gaming technology solutions and gaming related maintenance, IT, and distribution services for the leading hotel and casino operators based in the Macau Special Administrative Region of China and other Asian gaming markets. Able Entertainment Technology's electronic gaming machines are one of the few Chinese games approved by the Macao Gaming Commission of the Macao SAR Government. Macau is expected to surpass Las Vegas in total revenues by 2007. Currently, table games make up the bulk of Macau casino revenues, which is in sharp contrast to other areas such as Las Vegas. Able Entertainment Technology plans to pursue electronic versions of these popular table games which are less expensive to run resulting in higher casino profits. Further, the growing market in Macau is for Asian table games such as Baccarat, Fan Tan, and Sic Bo as these games have wider acceptance with the Asian market than Western games such as poker or slots. The development, manufacturing, maintenance, and service of electronic Asian table games are underserved areas which are predicted to grow considerably as Macau's gaming market matures.

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 2,300 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.

Safe Harbor Statement
This Company's announcement contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. 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, fluctuations in quarterly 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
Room 2309, Building A, TimeCourt, No.6 Shuguang Xili, Chaoyang District,
Beijing, China 100028

PacificNet Inc.

CONTACT: PacificNet USA office - Jacob Lakhany, +1-605-229-6678, orPacificNet Beijing office - Ada Yu, +86-10-59225000

Web site: http://www.pacificnet.com/

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