PacificNet Selected as a Component of the NAI China Small Cap Index

BEIJING, June 19 /Xinhua-PRNewswire/ -- PacificNet Inc. (NASDAQ:PACT), a leading provider of call center, Customer Relationship Management (CRM), and Value-Added telecom Services (VAS) in China announced today that it was selected as a component of the NAI China Small Cap Index.  The NAI China Small Cap Index (NAI-CSCI) is a leading market indicator featuring the performance of publicly traded small-cap companies whose major business is conducted in Greater China. A list of companies currently on the NAI-CSCI may be viewed at: http://chinaindex.chineseworldnet.com/english/stocks.asp.

Seeing tremendous growth in the Chinese market, the NAI China Small Cap Index, created by NAI Interactive Ltd., introduces the rising investment opportunities to individual and institutional investors. The number of Chinese companies listed in North America increases exponentially in order to meet the high demand in investing in Chinese equity. NAI-CSCI is aimed to bring in a new investment tool for the investment community to follow the exciting stories of the Chinese small cap industry.

"We are happy to be included in the NAI China Small Cap index," said Victor Tong, PacificNet's President. "NAI has built a reputation for selecting quality Chinese companies which investors can trust and we are honored to be chosen as one of them."

"This NAI China Index will set a benchmark for investors interested in China small cap stocks to locate their investment targets." said Gilbert Chan, Vice President of NAI. "The NAI index currently comprises 30 constituent stocks which are representative of the market.  For a company to be included in the NAI China Small Cap Index, it must meet the following basic criterion in order to be eligible for selection: market capitalization of less than US $1 billion and the majority of business must be conducted in Greater China. From the many eligible candidates, final selections are based on the following:  the financial performance of the companies, the representation of the sectors within the small capital market, the market turnover rankings, and capitalization of the companies."

In June 2006, PacificNet was selected as a component of the Russell Microcap Index. The Russell Microcap Index offers investors access to the microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market and is represented by the smallest 1,000 securities in the small-cap Russell 2000 Index plus the next 1,000 securities. Russell Microcap Index is constructed to provide a comprehensive and unbiased barometer for the microcap segment trading on national exchanges, while excluding lesser- regulated OTC bulletin board securities and pink-sheet stocks due to their failure to meet national exchange listing requirements. For more info on Russell Microcap Index, please see: http://www.russell.com/us/indexes/us/reconstitution/microcap.pdf

In January 2005, PacificNet was selected as a component of the Halter USX China Index (AMEX:^HXC).  The Index, created by the Halter Financial Group and calculated and distributed by the Amex is comprised of companies whose common stock is publicly traded in the United States and the majority of whose business is conducted within the People's Republic of China. The Halter USX China Index was created in response to the unique economic opportunities taking place in China, as well as the current dynamics in the United States capital markets. While there is strong demand for Chinese equity, U.S. investors still seek and prefer the transparency offered with a U.S. listing. For a company to be included in the Halter USX China Index it must conduct a majority of its business in China, maintain an average market cap of over $50 million for the preceding 40 trading days, trade on the NYSE, Amex or NASDAQ, and be approved by USX Selection Committee. Investors can buy the Index by investing in an exchange traded fund (ETF), the PowerShares Golden Dragon Halter USX China Portfolio (AMEX:PGJ).

For more information on Halter USX China Index (AMEX:^HXC), please visit http://www.usxchinaindex.com/.

About NAI Small Cap Index

NAI Interactive Ltd., the parent company of the NAI Small Cap Index, was founded in 1998.  With unique backgrounds and senior investment experience, NAI introduces new investment opportunities in the emerging Chinese market to the investment community. NAI's investment website, http://www.na-investor.com/, has become the largest platform to deliver information on Chinese small cap companies in North America.

About PacificNet

PacificNet Inc. (http://www.pacificnet.com/), through its subsidiaries, invests in and operates companies that provide outsourcing and Value-Added Services (VAS) in China, such as call centers, telemarketing, direct response television (DRTV) marketing, CRM, interactive voice response (IVR), mobile applications, and communications product distribution services. PacificNet's clients include the leading telecos, 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, SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank of China, Bank of East Asia, DBS, and Hong Kong Government. PacificNet employs over 2,300 staff in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, and branch offices in 26 provinces in China, and is headquartered in Minneapolis USA and Hong Kong.

PacificNet Epro (http://www.eprotel.com.hk/) is the industry leader and leading provider of outsourced call center, telemarketing, CRM, VAS and IVR services with over 15 years of field experience in greater China in the areas of outsourced call center services, training and consulting services, and call center management systems.

Safe Harbor Statement

This Company's announcement contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. 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, fluctuations in quarterly 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]
              

DATASOURCE: PacificNet Inc.



CONTACT:  PacificNet USA office - Jacob Lakhany, [phone]; or

PacificNet Beijing office - Ada Yu, [phone],

 



Web site:  http://www.usxchinaindex.com/

http://chinaindex.chineseworldnet.com/english/stocks.asp

http://www.na-investor.com/

http://www.eprotel.com.hk/ 

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