PacificNet provides market update

PACT expects to report fourth quarter and fiscal year 2007 earnings on April 15, 2008, and will hold a conference call to discuss the results and business outlook for 2008. The company will announce details on these events as the company completes its annual audit. It expects to file a Notification of Late Filing on Form 12b-25 with the SEC regarding its upcoming annual report on Form 10-K due to the significant increase in its scale of operations and a greater number of accounts to consolidate as a result of recent acquisitions, resulting in possible late filing, concurrent with its earning call mentioned above.

Assuming the current stock market environment persists and without the possibility of new funding, PACT expects to achieve minimum us$ 60 million revenue for Fiscal Year 2008, assuming no equity, convertible, or other financing during the year.

PACT expects to report a loss for financial year 2007 due to certain write-offs and provision for bad debt related to its legacy telecom operation. Due to the traditional slow season in the first quarter of the year, PACT expects to incur a one-time non-recurring loss in first quarter 2008, after taking into account of certain one-time non-recurring post-merger write-offs, and merger and acquisition expenses.

During 2007 Octavian invested in certification of its products, including GLI certification by Gaming Laboratories International, which now enables Octavian systems and games to be sold in regulated gaming markets worldwide. Octavian expects GLI approval to significantly boost revenues in the medium and long term.

On March 3, PACT appointed Stephen Crystal to the company's board of directors as an independent director. PACT believes it is now in full compliance with the independent director requirement of Rule 4350 and although it has not yet received a compliance letter from Nasdaq in this regard, it expects that one will be issued in due course.