PacificNet Updates Re-Audit Progress

MACAU, Sept. 28 /Xinhua-PRNewswire/ -- PacificNet, Inc. (Nasdaq: PACT), a leading provider of gaming and mobile game technology, e-commerce, and Customer Relationship Management (CRM) in China, announced today that the filing of amended Annual Reports on Form 10-K/A with the SEC containing re-audited financial statements with respect to fiscal years 2004 and 2005 as directed by the Nasdaq Listing Qualifications Panel is nearing completion. As previously announced, the Company's prior independent public accountants have withdrawn their audit reports regarding the Company's financial statements for the years 2004 and 2005 resulting in the Nasdaq Listing Qualification Panel's decision to commence delisting proceedings with respect to PacificNet's common stock. The Nasdaq Listing Qualifications Panel had granted, however, the Company's request for continued listing on the Nasdaq Stock Market, subject to the condition that on or before September 27, 2007 the Company re-file the above years form 10K or face a determination by the Nasdaq Listing Qualifications Panel whether or not to grant continued listing.

The majority of the re-audit work is done and the PacificNet and independent audit teams will continue to work hard to complete the re-audit as soon as possible. The Nasdaq Listing and Hearing Review Council notified PacificNet in August that it has called for a review of the Nasdaq Listing Qualifications Panel's decision regarding the Company and has also determined to stay the July 2, 2007 decision to suspend the Company's securities from trading pending further action by the Listing Panel. The Nasdaq Listing Qualifications Department has until October 19, 2007 to provide the Council with an updated qualifications summary sheet regarding PacificNet. PacificNet has until October 26 to provide additional information it wants the Listing Counsel to consider. The Company is unable to predict the duration of the Council's review or the eventual outcome of the Council's evaluation of the issues, although it intends to disclose to its shareholders any further developments in this regard promptly.

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 e-commerce 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.

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.