Pacific, Zhong Team

Pacific Internet forms equity joint venture with Chinese ISP Zhong Ren Telecom to market integrated IP communication applications in southern China

January 3, 2006

2 Min Read

SINGAPORE -- Pacific Internet(Hong Kong) Limited, a wholly owned subsidiary of Pacific Internet Limited(Nasdaq: PCNTF), Asia Pacific's largest telco-independent InternetCommunications Service Provider by geographic reach, today announced theformation of an equity joint venture ("EJV") with China-based Internetservices provider, Zhong Ren Telecom, to market integrated IP communicationapplications in southern China.

Under the agreement, Pacific Internet (Hong Kong) Limited and Zhong RenTelecom will each hold 50 per cent of the equity interest of EJV. Thestrategic alliance would allow both companies to explore synergies inknowledge sharing and the execution of aligned marketing strategy.

"The deal is a significant strategic move, as we extend our geographicreach to mainland China, expanding from the seven markets where we currentlyoperate," said Bien Kiat Tan, Chairman of Pacific Internet Limited. "China isa rapidly growing market for IP services, and the joint venture will allowenterprises in southern China to enjoy the same high level of services wealready deliver to customers in Singapore, Hong Kong, the Philippines,Australia, India, Thailand and Malaysia."

The new joint venture will leverage each partner's knowledge of China,Hong Kong, and other Asian markets, offer China-based businesses operating inthe region a suite of integrated communication applications on an IP platform.This will further give an opportunity to deliver unique service offerings tothese multinational enterprises in providing business-to-business andbusiness-to-customer connectivity solutions beyond their territory, furtherharnessing untapped potential and growth.

The cooperation with Zhong Ren Telecom marks Pacific Internet's firstofficial strategic partnership to penetrate the China market. As a keyvalue-added IP solution provider with 2 years of experience in China, ZhongRen Telecom services more than 200 customers from Southern China to Beijingand Shanghai and it recorded a turnover of more than 10 millions RMB in 2005.Pacific Internet will leverage Zhong Ren Telecom's established presence toservice the China market with a secured IP network and integrated IP services.

"We foresee significant growth in IP demand, both among enterprises inChina, and as more Hong Kong companies establish presence in Mainland China,"said Eddy Kuk, Managing Director, Pacific Internet (Hong Kong) Limited."Demand for integrated communication applications on an IP platform willincrease."

The joint venture combines Pacific Internet's extensive experience inproviding Internet services and Zhong Ren Telecom's local sales andoperational team capability. "We are delighted to have Pacific Internet as apartner," said Lam Yat Ping, Chairman of Zhong Ren Telecom. "Pacific Internethas a very strong presence in the Asia Pacific region, with comprehensiveInternet and value-added services that will allow enterprises in China toenjoy premium service quality, as they expand their operations from China toelsewhere in the Asia Pacific region."

Pacnet

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