Pacnet announces strategic expansion plans for China EJV

BEIJING, CHINA, 24 September 2008 – Following the recent formation of Pacnet Business Solutions Limited, an equity joint venture (EJV) with China-based Internet Service Provider (ISP) Zhong Ren Telecom, Pacnet today detailed its strategic plans to leverage its value-added licenses to offer enhanced telecommunication services and expand its presence across China.

According to latest figures from the China Internet Network Information Center (CNNIC), China’s Internet population has reached 253 million as of the end of June 2008, up from 210 million at the end of 2007. In the same period, China’s International Internet Bandwidth also grew from 369 Gbps to 494 Gbps.

“As the first foreign-owned telecommunications EJV in China with a license to offer three value-added services and a preliminary agreement from MII for nationwide IP VPN services, we plan to tap this rapidly growing market and accelerate our growth with significant investments to expand our operations in China,” said Bill Barney, Chief Executive Officer of Pacnet. “We strongly believe that while China is already host to the world’s largest Internet population, there is still huge potential for growth as Internet penetration here is only around 19 percent.”

The Pacnet EJV’s value-added license allows it to offer three value added services – namely operating Internet Data Centers, providing Internet Access as well as offering Store and Forward services such as email services, across major cities in China.

“In the coming months, we will also offer services such as IP VPN connections across China”, said Lily Zhang, Managing Director of Pacnet China. “With our strong relationship with the major domestic carriers, we will also be able to offer customers a comprehensive end-to-end suite of leading IP-based telecommunications services.”

Meanwhile, the Pacnet EJV is already offering services in cities including Beijing, Shanghai, Guangzhou, Shenzhen, Zhongshan, Dongguan and Huizhou. Mr Henry Lam, General Manager of the EJV added, “We are already in the process of expanding our Points of Presence to additional cities by the end of 2009.”

Pacnet also offers high bandwidth and diverse connectivity options into China through its EAC-C2C subsea cable. As a key partner of China Netcom, the exclusive fixed-line telecommunications partner of the recent Beijing 2008 Olympic Games, Pacnet provisioned over 20 Gbps of dedicated bandwidth on EAC-C2C, through cable landing points in Qingdao and Shanghai, to support the successful broadcast of the recently concluded Olympic Games.

Pacnet’s EJV partner in China is Zhong Ren Telecom, which has been a strategic partner since 2006. Pacnet and Zhong Ren both hold a 50 per cent equity interest in the EJV.

About Pacnet

Pacnet is the region’s largest independent telecommunications service provider, formed from the operational merger of Asia Netcom and Pacific Internet. Pacnet owns and operates EAC-C2C, Asia's largest privately-owned submarine cable network at 36,800 km, with a design capacity of 10.24 Tbps. The company offers a comprehensive portfolio of industry leading IP-based solutions for carriers, large enterprises and SMEs. Pacnet is headquartered in Hong Kong and Singapore, with offices in all key markets in Asia and North America.

In China, Pacnet Business Solutions Limited offers advanced telecommunications solutions tailored for small and medium enterprises, while Pacnet China offers leading-edge solutions for large enterprises and carriers.   For more information, please visit:  www.pacnet.com

For more information, please contact:

Roland Lim

Pacnet

Tel:      +852 2121 2975

Email:     roland.lim@pacnet.com

Genevieve Li

Pacnet 

Tel : +852 2121 2728

Email :    genevieve.li@pacnet.com