PacificNet Inc., a provider of customer relationship management (CRM), call center, and value-added telecom services for China, announced that it has signed an agreement to acquire a controlling interest in Beijing Linkhead Technologies Ltd. ("Linkhead"), a leading provider of value-added telecom service (VAS), interactive voice response (IVR), mobile chatting, and voice-portal services in China.

The total purchase consideration is approximately US$5 million payable in cash and shares. The acquisition will strengthen PacificNet's position as a leading VAS provider as well as enhance the Company's ability to market its CRM and VAS in China. PacificNet expects to significantly increase its VAS revenues, profits, and it's China operations and sales force for wireless business, and expand its overall VAS offerings. PacificNet believes that the acquisition should be accretive to the company's revenues, profits, and earnings per share in 2004.

Beijing Linkhead's clients and profit-sharing partners include some of the leading telecom operators such as China Telecom, China Mobile, China Unicom, UTStarcom, etc. Linkhead is also a Channel Partner of NMS Communications, a leading global provider of IVR, Call Center, and CRM solutions.