Gambling News by House of Odds

Tony Tong, Chairman and CEO of PacificNet, said although the company cannot
divulge the specifics on these sales "due to the highly competitive current
market in Macau," he does want to convey the company's "rapid progress in
the Macau gaming market to our shareholders and the gaming world." Initial
sales and acceptance of installed units are showing that PacificNet's
machines are "right for the Macau market," according to Tong, adding "we are
happy to see that our multiplayer EGM installation base is seeing steady
growth in Asia." According to recent Reuters reports, multiplayer gambling
machines have proven to be very popular in Macau, as the trend is away from
traditional, individual terminal games towards multi-player, shared
experience games. Electronic adaptations of popular table games are proving
exceptionally popular, both by gamblers and casino operators. Gamblers like
a private betting terminal over a crowded table while casino operators enjoy
greater accuracy, dealing speed, and cost savings of not having a human
dealer. "A powerful and developing trend over the next two years will be the
movement toward multi-station, communal play gaming devices," said Merrill
Lynch analyst David Anders in a note quoted by Reuters. Last week PacificNet
Inc. announced it has acquired an additional six percent interest in
PacificNet Games Limited (PacGames). Prior to this, in connection with the
acquisition of Able Entertainment previously announced during the Q3
earnings conference call, PacificNet owned 45 percent of PacGames.
PacificNet now owns 51 percent of PacGames. Tony Tong, Chairman and CEO of
PacificNet, said in recent board and management meetings "we evaluated the
early success of our gaming technology operation and were very satisfied
with the rapid progress and financial performance of the gaming operation.
The board of directors and management team has approved our new strategy to
focus on the rapidly growing gaming market in greater China, Macau, and
Asia." In September 2006, PacificNet opened an office in Macau to focus on
the rapidly expanding gambling and entertainment industries in that region.

Macau is one of the fastest-growing gambling markets in the world and is
predicted to surpass Las Vegas in total revenues by 2007. According to
recent statistics provided by Macau government, in 2005, Macau's gambling
revenues reached $5.8 billion, second only to Las Vegas gambling revenues of
$6 billion.

Macau borders Zhuhai City of Guangdong Province of China, one of the
country's wealthiest and most developed regions and is an hour away from
Hong Kong via ferry. The number of tourists visiting Macau reached 18.7
million in 2005, of which 56 percent or 10.5 million visitors were from
mainland China. By 2010, the number of tourists is expected to double to
nearly 30 million visitors per year.