PacificNet Inc., a leading 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 Epro Telecom Holdings Limited (Epro Telecom), one of the largest providers of value-added telecom service (VAS), interactive voice response (IVR), mobile chatting, and voice-portal services in Greater China with over 500 employees, 1000 call center seats, and processes over 100,000 calls daily.

The total purchase consideration is approximately US$3.5 million payable in cash and shares. The acquisition is expected to strengthen PacificNet's position as a leading provider of outsourced call center, telemarketing, CRM, and value-added telecom services in Greater China. PacificNet expects to significantly increase its call center revenues, profits, and it's China operations. PacificNet believes that the acquisition should be accretive to the company's revenues, profits, and earnings per share in 2004.

Epro Telecom's clients include the major telecom operators, banks, insurance and financial services companies in Greater China, such as China Telecom, China Unicom, PCCW, CSL, SmarTone Telecom, Sunday Communications, Swire Coca-Cola, Samsung, Dun & Bradstreet, DBS, Dao Heng Insurance, Shenzhen Development Bank, Hong Kong Government Housing Authority, and Hongkong Post.