[January 13, 2005]

PacificNet's Linkhead Deploys Color Ring-back Tone Service for China Unicom; CRBT Among Fastest Growing Value-Added Services in China

BEIJING --(Business Wire)-- Jan. 13, 2005 -- PacificNet Inc. (NASDAQ:PACT), a leading provider of value-added telecom services (VAS) for China, announced today that its subsidiary, Beijing Linkhead Technologies ("Linkhead"), a leading provider of interactive voice response (IVR), voice chatline, mobile QQ, and other voice based value- added services in China, has launched the Color Ring-back Tone (CRBT) services for China Unicom (NYSE:CHU) in Shandong and Henan.

Linkhead partnered with North Tech, a leading system integrator and channel partner, in deploying the customized Color Ring-back Tone (CRBT) service for China Unicom Henan Province, with over 200,000 users based on both CDMA and GSM networks. With the CRBT service ("Cai-Ling"), subscribers can customize the ring tone from a wide selection of commercial music, personalized messages, celebrity greetings, or voice advertisements to replace the monotonous ring connecting tone that the caller would hear. The CRBT service makes mobile communications more personalized while opening new revenue possibilities for operators to increase average revenue per user (ARPU).

CRBT service has increased dramatically since it was first introduced by China Mobile in 2003 and experts estimate that CRBT subscribers will constitute about 20% of the 450 million total telephone subscribers (including mobile and fixed-line) in China, which has a market size of RMB 5 billion per year. Strong demand is expected to be generated from equipment manufacturing, content and services.

North Tech adopted Linkhead's CRBT technology for Henan Unicom in 2003. Wu Lei, General Manager of North Tech, stated: "With Linkhead's strong partnership and support, we had a successful debut of the CRBT service on Unicom's CDMA network last year. The CRBT value added service won high praise from Unicom's subscribers and contributed to enhancing the Average Revenue Per User (ARPU). Riding on the early success, Unicom expanded the CRBT service on its GSM network beginning this year. The number of CRBT subscribers has quickly doubled to 200,000, and is still increasing. Henan Unicom is confident about the growth prospects for this services and the value it adds to its customers. "

Brian Lin, CEO of Linkhead, stated, "Over the last 10 years, Linkhead has pioneered many new enhanced services solution introductions and deployments, and has served hundreds of customers including carriers, service providers, equipment vendors and system integrators. With the growing market demand for IVR and other voice related value-added services in China, we are confident that Linkhead will continue to be selected by leading carriers such as China Unicom."

About China Unicom

China Unicom (www.ChinaUnicom.com.cn) is one of the major mobile operators in China operating both GSM and CDMA mobile networks, long-distance call, local call, data communication including Internet service and IP phone, value-added telecom service, wireless paging and a variety of relevant services.

About Linkhead

Beijing Linkhead Technologies Ltd. (www.Linkhead.com) is a leading value-added telecom service (VAS) provider, interactive voice response (IVR) development company, and Color Ring-back Tone system provider in China. Linkhead's clients and revenue-sharing partners include some of the leading telecom operators in China such as China Telecom, China Mobile, China Unicom, UTStarcom, etc. Linkhead is headquartered in Beijing with sales offices in Shenzhen and Shanghai.

About PacificNet

PacificNet Inc. (www.PacificNet.com), through its subsidiaries, invests in and operates companies that provide value-added telecom services (VAS) and solutions in China, such as call centers, telemarketing, customer relationship management (CRM), interactive voice response (IVR), VoIP, SMS, MMS, 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 Mobile, China Unicom, PCCW, Hutchison Telecom, CSL, SmarTone, Sunday, Swire Travel, Coca-Cola, SONY, Samsung, 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.

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