Octavian Gaming signs Malta deal

LONDON, England -- (PRESS RELEASE) -- PacificNet, Inc. (Nasdaq: PACT), a leading provider of gaming technology, Customer Relationship Management ("CRM") and e-commerce in China, announced today that its Octavian International Limited ("Octavian") subsidiary has been selected by leading gaming operators in Malta to provide EGMs (Electronic Gaming Machines) and its ACP (Accounting, Control, Progressives) System.

Octavian International is working with LAAK and Vanguard, two gaming operators in Malta, to offer a cost-effective systems solution that will enable all of the island's gaming venues to conform to new legislation recently introduced by the Maltese Government. The new legislation will require all venues operating gaming machines to connect to a Government- licensed operator's central monitoring system for accounting purposes. As a result, each gaming venue operator will require, as a minimum, a single-site slots management system such as those offered within Octavian's range of ACP systems.

LAAK and Vanguard are two operators who have joined forces to help the island's gaming industry meet the new legislative requirements with the minimum of disruption to business. "It is our belief that the new legislation will result in machine numbers on Malta being cut in half. While there is no set machine limit on the island, due to the high license fees only the most profitable sites will remain," said Gary Pace, Managing Director of LAAK. Daniel Schembri, Managing Director of Vanguard added, "This means that those operators who remain in the Maltese market will need to rely on a cost- effective slot management solution that will meet their regulatory requirements and, at the same time, enable them to run an efficient and profitable operation."

LAAK and Vanguard were aware of Octavian's track record in customizing its systems to the needs of local gaming markets which motivated them to initiate talks with Octavian. "Octavian's cost-effective P-Box system and single-site ACP systems will allow each gaming venue to meet the anticipated regulatory requirements," said Robert Dykstra, General Manager of Octavian EMEA. "In addition, the systems provide powerful progressives functionality to help each venue to attract more customers and drive revenue growth, with an easy upgrade path."

An initial participation deal for a number of Octavian-supplied gaming machines has already been signed and the first Octavian ACP systems are expected to be installed at gaming venues across the islands. In parallel with this activity, and subject to contract, it is expected that LAAK and Vanguard will be appointed as distributors for Octavian systems and games on Malta including Octavian's Maverick EGM which will be supplied on either an outright sale or participation basis. The Maltese Government has set a live date of June 1, 2008 as an initial goal for gaming operators to start reporting, though not all machines will be required to be linked to the central monitoring system immediately. All machines must be compliant by December 31, 2008 and those that do not comply by June 1, 2008 will be charged a higher license operating fee.