NASDAQ Panel Grants PacificNet's Request for Continued Listing

NASDAQ Panel Grants PacificNet's Request for Continued Listing

July 10, 2007

    BEIJING, July 5 /Xinhua-PRNewswire/ -- PacificNet, Inc.
(Nasdaq: PACT), a leading provider of gaming technology,
e-commerce and Customer Relationship Management (CRM)
services in China, announced today that the NASDAQ Listing
Qualifications Panel has granted 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 shall re-file a complete Form 10-K for the fiscal
year ended December 31, 2006; any required amendments to
its Form 10-Q for the quarter ended March 31, 2007, and all
required restatements. In addition, the Company shall file
its Form 10-K for the fiscal year ended December 31, 2004,
and its Form 10-K for the fiscal year ended December 31,
2005, in a form acceptable to the SEC, with appropriate
audit opinions. 

    In support of its decision, the Panel also notes the
difficult position that the Company was placed in by the
late notification from its previous auditor, Clancy &
Co., of its resignation, the apparently untimely and
incomplete communications from Clancy regarding the
concerns about the Company's stock option grants, and the
withdrawal of prior years' audit opinions by Clancy.
Further, in the likely event that Clancy does not reinstate
the prior years' audit opinions, the Company's new auditor
will need substantial time to re-audit those years.

    As previously announced, the Company's prior
independent public accountants have withdrawn their audit
reports regarding the Company's financial statements for
the years ended December 31, 2005 and 2004. The Company had
a hearing with the NASDAQ Listing Qualifications Panel at
which time it presented a plan of compliance with respect
to the timeline for the re-instatement of audited financial
statements for the fiscal years ended December 31, 2005 and
2004, and the filing of the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2006.

    The company is working diligently to meet the above
deadlines.  As such, PacificNet stock will continue to
trade under the ticker symbol "PACT".
 
    About PacificNet 

    PacificNet, Inc. (http://www.PacificNet.com) is a
leading provider of gaming 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's gaming
clients include the leading hotels, casinos, and gaming
operators in Macau, Asia, and Europe, while ecommerce 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.

    Contact:
    PacificNet USA office:
    Jacob Lakhany, Tel: [phone]

    PacificNet Beijing office:
    Ada Yu, Tel: [phone]
    23rd Floor, Building A, TimeCourt, No.6 Shuguang Xili,
Chaoyang District,
    Beijing, China 100028

    PacificNet Shenzhen Office:
    Tel: [phone]
    Room 4203, JinZhongHuan Business Center, Futian
District, Shenzhen, China
    518040