BEIJING, April 22 /Xinhua-PRNewswire/ -- PacificNet, Inc. (Nasdaq: PACT), a leading provider of e-commerce and gaming technology in China, announced an agreement to sell the interest in one of its telecom and CRM units in China for a total sale consideration of $21M HKD of which partial payment has already been received. PACT has been actively negotiating with interested buyers and potential investors to divest its non-core, non-gaming business units.
Tony Tong, Chairman and CEO of PacificNet, said, "As previously approved by our board of directors, PACT's new strategy is to focus on the rapidly growing gaming and lottery markets in greater China, Macau, and Asia. We believe this telecom asset sale will simplify our operations, reduce compliance costs, and improve our liquidity and gaming focus. Since most of our legacy business units are profitable, we believe we are in a healthy position to extract cash and value for our shareholders. We are in on-going discussion with multiple potential buyers and investors to maximize our return and to boost our cash position. Despite the divestiture of our telecom, call center assets and facilities, we believe our gaming strategy will continue to benefit from the CRM and database marketing expertise which we've gained in China and Asia in the past years."
"We are very excited about the market potential and strong demand for our gaming and lottery products in our surrounding markets," Phillip Wong, CFO of PACT, added. "Fueled by casino openings and a 23 percent jump in annual visitor volume, operators in Macau collected more than $10.3 billion in gaming revenue during 2007, an increase of 46 percent over 2006 as Macau has surpassed the Las Vegas Strip as the largest gaming market in the world. More than 27 million people visited Macau during 2007, including 15 million visitors from Mainland China and 8.2 million visitors from Hong Kong. Macau is a Special Administrative Region of China and is the only place in China where casino gaming is legal. I believe PACT has an early mover advantage as a leading domestic developer and manufacturer of gaming products for Asian players. We are confident that our gaming and lottery products have demonstrated their income generating capabilities and will be adopted by the increasing number of gaming and lottery operators in China and Asia in 2008 and beyond."
About PACT
PacificNet (PACT) is a leading provider of gaming and mobile game technology worldwide with a focus on emerging markets in Asia, Latin America and Europe. PacificNet's gaming products are localized to their specific markets creating an enhanced user experience for players and larger profits for operators. PacificNet's gaming clients include the leading hotels, casinos, and gaming operators in Macau, Europe and elsewhere around the world. PacificNet also maintains legacy subsidiaries in the call center and ecommerce business in China. PacificNet employs about 500 staff in its various subsidiaries with offices in the US, Hong Kong, Macau, China. For more information please visit http://www.PacificNet.com .
PacificNet's Major Operating Subsidiaries:
- PacificNet Games Limited (http://www.PactGames.com) is a leading provider of Asian multi-player electronic gaming machines, land-based and online gaming technology solutions, gaming related maintenance, IT and distribution services for the leading hotel, casino and slot hall operators based in Macau, China, the Philippines 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. Take1 Technologies is currently profitable.
- Pacific Solutions Technology is a CMM Level 3 certified software development center located in Shenzhen, China, that 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. Pacific Solutions has been a profitable company for the past few years.
- SOLD: PacificNet Epro (http://www.EproTel.com.hk): CRM Call Center and Customer Services Outsourcing. Epro has been a profitable company for the past few years.
- PacificNet Clickcom (http://www.clickcom.com.cn) MOABC.com: VAS, SP (SMS, WAP)
- Guangzhou WanRong (http://www.my2388.com): Value-added telecom service provider (VAS, SP, SMS, MMS, IVR, WAP, Java Mobile Games). WanRong has been a profitable company for the past few years.
- PacificNet Communications Limited (http://imobile.pacificnet.com), mobile telecom provider in Hong Kong. Pacific Communications has been a profitable company for the past few years.
- iMobile China (http://www.imobile.com.cn, http://www.18900.com, http://wap.17wap.com) the leading e-commerce portal for mobile phone hardware, software, games and accessories online sales provider in China. iMobile is also the designated e-commerce service provider and operator for Nokia (http://www.shop.nokia.com.cn) and Motorola (http://motostore.com.cn) and responsible for the design, operation, payment processing, customer services support hotline, CRM, and logistic services for Nokia and Motorola in China. iMobile has been a profitable company for the past few years.
