PacificNet Games, Advansys sign deal

MACAU, China -- (PRESS RELEASE) -- PacificNet, Inc. (Nasdaq: PACT), a leading provider of Customer Relationship Management (CRM), mobile internet, e-commerce and gaming technology in China, announced today that its PacificNet Games subsidiary has signed a strategic alliance partnership agreement with leading casino management system provider Advansys.

Through this partnership, PacificNet Games will deploy Advansys products in multiple Asian markets, customize existing products to meet local gaming requirements and co-develop new casino management systems for Asian casinos. PactGames currently carries a wide range of gaming product lines, including EGT Series and CyberCash Series Slot machines, Virgin Series MultiPlayer Casino gaming machines, eTable Series Multiplayer casino gaming machines, and the Evona series casino roulette. This partnership with Advansys adds to this product line a world-class casino management system, giving PactGames a complete and strengthened product line. Other suppliers of casino management systems include IGT, Aristocrat, BallyTech, and Progressive Gaming.

The Advansys casino management system includes slot accounting, cage management, player tracking, slot marketing, and slot machine maintenance. This summer, Advansys launched SlotScanner(TM) Ticketing, which is used for the management of Ticket-In, Ticket-Sut (TITO) slot operations in place of traditional coins. SlotScanner(TM) Ticketing is an upgrade to SlotScanner(TM) Accounting & Cage and operates on all slot machines that support reading and printing of cash-out tickets. Ticketing is very popular with players that value the privacy of their play, simplicity of use and instant transfer of credits from one machine to another. SlotScanner(TM) Ticketing is a solution for operators who want to increase the efficiency and profitability of their slot floor by reducing or eliminating hopper fills and decreasing labor costs. Advansys has seen strong demand for all of its casino management products due to Asian operators facing growing competition, which is bringing an increased need for casino efficiency and a stronger push to gain player loyalty.

Tony Tong, Chairman and Chief Executive Officer of PacificNet, said "We highly respect Advansys' strength and knowledge in casino management systems. We are excited about the features, quality and income generation potential of Advansys's gaming products. We think Advansys's gaming products are complementary to PacificNet Games' multi-player electronic gaming machine product lines and we believe that Advansys' gaming products will further enhance PacificNet's position to become a leading gaming technology provider in Asia. With our mature gaming product line, strong presence and installation base, this partnership with Advansys will greatly enhance PacificNet's efforts to expand penetration of our products in Asia and the rest of the world."

As of the end of 2006, Macau (a Special Administrative Region of the People's Republic of China) has become the largest and fastest-growing gaming market in the world, and has surpassed the Las Vegas Strip in total revenues. According to statistics provided by Macau government, in 2006, Macau's gaming revenues reached US$7 billion (MOP 56.2 billion patacas), surpassing the Las Vegas Strip gaming revenues of US$6.6 billion. Macau borders Zhuhai City of Guangdong Province of China, one of the country's wealthiest and most developed regions and is an hour away from Hong Kong via ferry. In 2006, the number of tourists visiting Macau reached an all-time record of 22 million, an increase of 17 percent compared with 2005, of which 55%, or 12 million visitors, were from mainland China. By 2010, the number of tourists is expected to nearly double to almost 30 million visitors per year. Approximately one billion people live within a three-hour flight of Macau. 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.