PacificNet Inc. (Nasdaq:PACT), a leading provider of customer relationship management (CRM), call centre, and value-added telecom services for China, announced that it has signed an agreement to acquire a controlling interest in Epro Telecom Holdings Limited ("Epro Telecom"), one of the largest providers of value-added telecom service (VAS), interactive voice response (IVR), mobile chatting, and voice-portal services in Greater China with over 500 employees, 1000 call centre seats, and processes over 100,000 calls daily.

The total purchase consideration is approximately US$3.5 million payable in cash and shares. The acquisition is expected to strengthen PacificNet's position as a leading provider of outsourced call centre, telemarketing, CRM, and value-added telecom services in Greater China. PacificNet expects to significantly increase its call centre revenues, profits, and it's China operations. PacificNet believes that the acquisition should be accretive to the company's revenues, profits, and earnings per share in 2004.

Epro Telecom's clients include the major telecom operators, banks, insurance and financial services companies in Greater China, such as China Telecom (NYSE:CHA ), China Unicom (NYSE:CHU), PCCW (NYSE:PCW ), CSL, SmarTone Telecom, Sunday (Nasdaq:SDAY) Communications, Swire Coca-Cola, Samsung, Dun & Bradstreet, DBS, Dao Heng Insurance, Shenzhen Development Bank, Hong Kong Government Housing Authority, and Hongkong Post, etc.

Victor Tong, President of PacificNet stated, "This strategic acquisition is a compelling move by PacificNet to capture part of the rapidly growing outsourcing, call centre, telemarketing and CRM service market in Greater China. We are planning further strategic moves in the value-added telecom market to increase our customer bases, revenue and profit fundamentals, and improve our shareholder value."

Telly Wong, CEO of Epro Telecom, stated, "With growing market demand for outsourcing call centre, telemarketing, and CRM services in Hong Kong and China and benefit of lower costs in China, we believe our strong experience in the call centre and value-added telecom services will contribute positively to PacificNet's bottom line."