PacificNet Games to Deliver Electronic Gaming Machines (EGM) to Holiday Inn
Macau Casino
BEIJING, Dec. 6 /Xinhua-PRNewswire/ -- PacificNet Inc. (Nasdaq: PACT), a
leading provider of Customer Relationship Management (CRM), mobile internet,
e-commerce and gaming technology in China, reported today that its PacificNet
Games Limited (PacGames) subsidiary has been selected by Holiday Inn Macau
Casino to provide multi-player electronic gaming machines. Terms of the
agreement were not disclosed due to competitive reasons.
Located at 82-86 Rua de Pequim, The Holiday Inn is right in the heart of
Macau's casino district, with the Casino Lisboa to the west and the Vegas-
style Sands casino and the Fisherman's Wharf entertainment area to the east.
To the north is old Macau, where Largo do Senado (Senado Sq), the Ruins of
StPaul's, Macau Museum and the canyon-like lanes remind you that Macau is
different to anywhere else in Asia, and on earth.
"The selection of PacificNet Game's electronic gaming machines by the
leading hotel-casinos in Macau marks the beginning of PacificNet's transition
away from the low-margin telecom business into the new high-margin gaming
business," said Tony Tong, Chairman and CEO of PacificNet. "In recent board
and management meetings, we evaluated the early success of our gaming
technology operation and were satisfied with the rapid progress and financial
performance of the gaming operation. The management team and the board of
directors have approved our new strategy to focus on the rapidly growing
gaming market in greater China, Macau, and Asia. We have excellent existing
relationships in Macau and we will continue to very actively pursue this
area. After some early success, we believe that we are well positioned to
expand our sales of gaming products to the hotel-casino operators in Macau
and rest of Asia."
In September, PacificNet opened an office in Macau to focus on the
rapidly expanding gaming and entertainment industries in that region. The
Macau office is located in the First International Commercial Centre, Macau
Special Administrative Region, China, is adjacent to the new Galaxy StarWorld
Hotel and is walking distance from both the Wynn and Sands Casinos.
"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," said Victor Tong, President of PacificNet. "The opening of our
Macau office will facilitate our rapid launch into this market. We feel that
the Asian gaming technology market has near-term growth potential and are
very happy to enter this exciting high growth market. We recognize Macau's
remarkable growth potential and have opened an office in this location as a
first step in entering this market. The bulk of Macau's current gaming
revenue comes from VIP rooms and high-roller table games. As the market
matures, it is predicted that lower stakes, electronic versions of these
popular table games played by the masses will exceed the revenue of the table
games, as in Las Vegas. This trend is already visible. PacificNet plans to
aggressively pursue this mass market of electronic gaming machines with the
goal of being a leading provider of electronic adaptations of popular Asian
casino table games."
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.
About Holiday Inn Macau
Holiday Inn Macau ( http://www.macau.holiday-inn.com ) is strategically
situated in the heart of the new business district. Only three minutes to and
from the Macau-Hong Kong Ferry Terminal and the city centre and located eight
kilometers from the airport, the hotel is accessible by public
transportation. The hotel offers 324 comfortably furnished guest rooms on 16
floors including 23 rooms and suites on the Executive Club floor, which has
been specially designed to suit business travelers.
About PacificNet
PacificNet, Inc. ( http://www.PacificNet.com ) is a leading provider of
Customer Relationship Management (CRM), mobile internet, e-commerce and
gaming technology in China. PacificNet's clients include the leading telecom
companies, 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, Motorola, Nokia, SONY, TCL, Huawei, American Express, Citibank, HSBC,
Bank of China, Bank of East Asia, DBS, TNT, and Hong Kong Government.
PacificNet employs over 1400 staff in its various subsidiaries throughout
China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, Macau, and
branch offices in 28 provinces in China and is headquartered in Beijing and
Hong Kong.
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. PacGames is a leading developer of electronic versions of popular
table games which are less expensive to run resulting in higher casino
profits with great appeal to the mass market players. The growing market in
Macau is for Asian table games such as Baccarat, Roulette, Fan Tan, Fish-
Prawn-Crab and Sic-Bo Cussec as these games have wider acceptance in the
Asian market than Western games such as poker or slots. We believe that 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. PacGames products include multi-play
electronic gaming machines such as Baccarat, Fish-Prawn-Crab, Sib-Bo Cussec,
Roulette, and Video Lottery Terminals (VLT) such as Keno and Bingo, as well
as other traditional slot machines.
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.