Pacific Internet Joins Forces with Zhong Ren Telecom

Pacific Internet (Hong Kong) Limited, a wholly owned subsidiary of Pacific Internet Limited (Nasdaq: PCNTF), Asia Pacific's largest telco-independent Internet Communications Service Provider by geographic reach, today announced the formation of an equity joint venture ("EJV") with China-based telecommunications equipment and services provider, Zhong Ren Telecom, to market integrated IP communication applications in southern China.

:nder the agreement, Pacific Internet (Hong Kong) Limited and Zhong Ren Telecom will each hold 50 per cent of the equity interest of EJV.

"The deal is a significant strategic move, as we extend our geographic reach to mainland China, expanding from the seven markets where we currently operate," said Bien Kiat Tan, Chairman of Pacific Internet Limited. "China is a rapidly growing market for IP services, and the joint venture will allow enterprises in southern China to enjoy the same high level of services we already deliver to customers in Singapore, Hong Kong, the Philippines, Australia, India, Thailand and Malaysia."

The new joint venture will leverage each partner's knowledge of China, Hong Kong, and other Asian markets, offer China-based businesses operating in the region a suite of integrated communication applications on an IP platform.

The cooperation with Zhong Ren Telecom marks Pacific Internet's first official strategic partnership to penetrate the China market. Pacific Internet will leverage Zhong Ren Telecom's established presence to service the China market with a secured IP network and integrated IP services.

"We foresee significant growth in IP demand, both among enterprises in China, and as more Hong Kong companies develop business contacts with Mainland China," said Eddy Kuk, Managing Director, Pacific Internet (Hong Kong) Limited. "Demand for integrated communication applications on an IP platform will increase."

The joint venture combines Pacific Internet's extensive experience in providing Internet services and Zhong Ren Telecom's local sales and operational team capability. "Pacific Internet has a very strong presence in the Asia Pacific region, with comprehensive Internet and value-added services that will allow enterprises in China to enjoy premium service quality, as they expand their operations from China to elsewhere in the Asia Pacific region," said Lam Yat Ping, Chairman of Zhong Ren Telecom.

Contact:

Winnie Leung

Tel: +852-2335-3689

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