PACT Provides Market Update
April 18 2008 - 6:00PM
PR Newswire (US)
BEIJING, April 18 /Xinhua-PRNewswire-FirstCall/ -- PacificNet, Inc.
(NasdaqGM: PACT), a leading provider of e-commerce and gaming
technology in China, announced the following market updates today:
1. PACT has signed an agreement to sell its entire interest in Epro
Telecom, a leading telecom, call center, and CRM company in China.
Total sale consideration will be $21M HKD of which partial payment
has already been received. PACT will continue to negotiate with
interested buyers and potential investors to divest its non-core,
non-gaming business units. PacificNet's Major Operating
Subsidiaries: - PacificNet Games Limited (
http://www.pactgames.com/ ) is a leading provider of Asian
multi-player electronic gaming machines, land-based and online
gaming technology solutions, gaming related maintenance, IT and
distribution services for the leading hotel, casino and slot hall
operators based in Macau, China, the Philippines and other Asian
gaming markets. - Take1 Technologies (
http://www.take1technologies.com/ ) is in the business of designing
and manufacturing electronic multimedia entertainment kiosks,
coin-op kiosks and machines, Electronic Gaming Machines (EGM),
bingo and slot machines, AWP (Amusements With Prizes) games,
server-based downloadable games systems, and Video Lottery
Terminals (VLT) such as Keno and Bingo machines, including
hardware, software, and cabinets. Take1 Technologies is currently
profitable. - Pacific Solutions Technology is a CMM Level 3
certified software development center located in Shenzhen, China,
that specializes in the development of client-server systems,
internet e-commerce software, online and casino gaming systems and
slot machines, as well as banking and telecom applications using
Microsoft Visual C++, Java, and other rapid application development
tools. Pacific Solutions has been a profitable company for the past
few years. - SOLD: PacificNet Epro ( http://www.eprotel.com.hk/ ):
CRM Call Center and Customer Services Outsourcing. Epro has been a
profitable company for the past few years. - PacificNet Clickcom (
http://www.clickcom.com.cn/ ) MOABC.com: VAS, SP (SMS, WAP) -
Guangzhou WanRong ( http://www.my2388.com/ ): Value-added telecom
service provider (VAS, SP, SMS, MMS, IVR, WAP, Java Mobile Games).
WanRong has been a profitable company for the past few years. -
PacificNet Communications Limited ( http://imobile.pacificnet.com/
), mobile telecom provider in Hong Kong. Pacific Communications has
been a profitable company for the past few years. - iMobile China (
http://www.imobile.com.cn/, http://www.18900.com/, wap.17wap.com )
the leading e-commerce portal for mobile phone hardware, software,
games and accessories online sales provider in China. iMobile is
also the designated e-commerce service provider and operator for
Nokia ( http://www.shop.nokia.com.cn/ ) and Motorola (
http://motostore.com.cn/ ) and responsible for the design,
operation, payment processing, customer services support hotline,
CRM, and logistic services for Nokia and Motorola in China. iMobile
has been a profitable company for the past few years. "We believe
that this well-timed sale will free up cash so that we can focus on
our gaming operations," said Phillip Wong, CFO of PacificNet. "As
we stated previously in our conference calls, PacificNet will
continue to seek strategic alternatives for our legacy businesses
while focusing on gaming going forward. We believe that this is a
significant step in that direction as Epro was one of our larger
telecom CRM units. In addition to improving liquidity and our
focus, we believe this sale will also significantly simplify our
operations as far as accounting and audit and SOX compliance. We
plan to continue to sell our other legacy telecom assets as we are
in on-going discussion with multiple potential buyers and investors
to maximize our return, which we believe will boost our cash
position. We feel this is a smart move for both our company and our
shareholders." 2. Due to the sale of a major telecom CRM unit,
PACT's 2008 revenue projection will be adjusted accordingly.
Assuming the current stock market environment persists and without
the possibility of new funding, PACT expects to achieve minimum $30
million revenue for Fiscal Year 2008, assuming no equity,
convertible, or other financing during the year. 3. On April 16,
2008, PACT received a letter from The NASDAQ Stock Market
indicating that due to the delay in the filing of its Form 10-K for
the period ended December 31, 2007, the Company's common stock is
subject to delisting pursuant to NASDAQ Marketplace Rule
4310(c)(14). NASDAQ Marketplace Rule 4310(c)(14) requires the
Company to make on a timely basis all filings with the Securities
and Exchange Commission, as required by the Securities Exchange Act
of 1934, as amended. As PACT announced last week, the Company has
delayed the filing of its 10-K annual report due to an increase in
its scale of operations and increased account work as a result of
recent mergers and acquisitions. PACT plans to file its 10-K annual
report within one month. PacificNet will appeal the NASDAQ Staff's
determination by requesting a hearing before the NASDAQ Listing
Qualifications Panel, which would automatically stay the delisting
of PacificNet's common stock pending the Panel's review and
determination. Although there can be no assurance that the Panel
will grant the Company's request for continued listing, once the
10-K is filed, PACT believes the NASDAQ non-compliance situation
will be remedied. About PACT PacificNet (PACT) is a leading
provider of gaming and mobile game technology worldwide with a
focus on emerging markets in Asia, Latin America and Europe.
PacificNet's gaming products are localized to their specific
markets creating an enhanced user experience for players and larger
profits for operators. PacificNet's gaming clients include the
leading hotels, casinos, and gaming operators in Macau, Europe and
elsewhere around the world. PacificNet also maintains legacy
subsidiaries in the call center and ecommerce business in China.
PacificNet employs about 500 staff in its various subsidiaries with
offices in the US, Hong Kong, Macau, China. For more information
please visit http://www.pacificnet.com/ . For more information,
please contact: PacificNet USA office: Jacob Lakhany Tel:
+1-605-229-6678 Email: DATASOURCE: PacificNet, Inc. CONTACT: Jacob
Lakhany at the PacificNet USA office, +1-605-229-6678, Web site:
http://www.pacificnet.com/
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