PacificNet Receives Notification From Nasdaq

PacificNet Receives Notification From Nasdaq

April 05, 2007

    SHENZHEN, China, April 5 /Xinhua-PRNewswire/ --
PacificNet, Inc.
(Nasdaq: PACT) today announced that on March 30, 2007, it
received a letter
from the Nasdaq Stock Market indicating that the Company's
common stock is
subject to delisting pursuant to Nasdaq Marketplace Rule
4310(c)(14). Nasdaq
Marketplace Rule 4310(c)(14) requires, among other things,
that annual reports
filed with Nasdaq contain audited financial statements. 
The Nasdaq delisting
letter was issued as a result of the Company's filing of a
Current Report on
Form 8-K with the Securities and Exchange Commission on
March 22, 2007, which
stated that its former independent auditor, Clancy &
Co., P.L.L.C., withdrew
its previously issued audit reports related to the
Company's consolidated
financial statements for the fiscal years ended December
31, 2005 and 2004.
Nasdaq has advised that as a result of the withdrawal of
the audit report,
PacificNet's Annual Reports on Form 10-KSB that include
financial statements
for the fiscal years ended December 31, 2005 and 2004 are
incomplete and
therefore insufficient to satisfy Nasdaq Marketplace Rule
4310(c)(14).

    The Company's securities are subject to delisting from
the Nasdaq Stock
Market at the opening of business on April 11, 2007, unless
the Company
requests a hearing on or prior to April 9. 2007, in
accordance with the
Marketplace Rule 4800 Series.  PacificNet plans to appeal
Nasdaq's
determination by requesting an oral hearing, before the
Nasdaq Listing
Qualifications Panel.  A hearing request will automatically
stay the
suspension and delisting of PacificNet's common stock
pending the Panel's
review and determination. There can be no assurance that
the Panel will grant
the Company's request for continued listing.

    PacificNet is currently in the process of evaluating
the reasons for the
withdrawal of the audit reports for the years indicated and
determining how
quickly it can obtain the reinstatement of such audit
reports or new audit
reports regarding such years from its current independent
public auditors.
The audit committee of the Company is aware of the issued
raised and is
conducting an internal investigation of PacificNet's option
grant practices
for the years 2003, 2004 and 2005 and expects that the
results of that
investigation will influence the resolution of the larger
issues of the audit
report and compliance with the NASDAQ listing
requirements.

    About PacificNet

    PacificNet Inc. (http://www.PacificNet.com) is a
leading provider of
Customer Relationship Management (CRM), mobile Internet,
e-commerce and gaming
technology in China. PacificNet's clients include the
leading telecom
companies, banks, insurance, travel, marketing and business
services companies
and telecom consumers in Greater China. PacificNet's
corporate clients include
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, Hong Kong Government,
and leading hotel-
casinos in Macau and Asia. PacificNet employs over 1,400
staff in its various
subsidiaries throughout China with offices in Hong Kong,
Beijing, Shenzhen,
Guangzhou, Macau, and branch offices in 28 provinces in
China and is
headquartered in Beijing and Hong Kong.

    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