ASIA China : With the anticipated launch of 3G services in China, mobile video is widely recognized by mobile operators, value-added service providers and mobile device manufacturers to drive new mobile revenue growth. According to industry research, China's mobile phone video subscribers are expected to reach 66 million by 2008 with a market size of RMB 1.2 billion, and 195 million subscribers by 2010 with a market size of RMB 4.9 billion. In preparation for the arrival of 3G services in China, Guangzhou 3G and CEI have formed a partnership to jointly launch the iPACT Mobile Video Services by combining the competitive advantages, geographic coverage, and content resources of the two companies.

The iPACT Mobile Video Services will allow subscribers to use SMS, MMS, WAP and IVR to submit a request and receive mobile video by downloading or watching live via mobile WAP services. The video content includes movies, preview trailers, film clips, music and sound tracks, posters and casting photos. Subscribers can even pick and choose their favorite movie scenarios and alternative endings on demand. Subscribers can save their favorite dialogues, song and sound effects as ring-tones or CRBT in their mobile phones.

Under the iPACT program, PacificNet will provide all of the hardware, software, application, and content for VAS including a variety of IVR and other wireless and fixed-line VAS content to qualified VAS-Alliance partners on a profit sharing basis. iPACT's VAS content includes video, audio, color ring back tone (CRBT) services, background music (BGM) services, VICQ mobile instant messaging services, sports news, weather forecasts, stock market, humor, songs and mobile karaoke, mobile TV and video, games, entertainment, as well as community-oriented services such as chatline and dating services. Mobile and fixed-line phone users can access PacificNet's VAS-Alliance services through Guangzhou 3G presence in 26 provinces in China.

"Wireless entertainment based on mobile phone and mobile network represents a totally new multimedia consumption pattern, making mobile phones a 24-hour multimedia content distribution channel," said Karen Cai, General Manager of Chinese Entertainment International. "As a pioneering move in the entertainment industry, our joint rollout of the iPACT Mobile Video Service will provide movie and TV viewers with a unique entertainment experience on demand, anytime, anywhere."

"In the development of our 3G value-added services, we have learned that our subscribers would most likely to spend money on purchasing video, movie, TV, music,and sound-tracks using their multimedia mobile phones," said Super Wang, General Manager of Guangzhou 3G. "PacificNet's launch of the iPACT Mobile Video Services is expected to play a key role in the next phase of our growth, as part of the iPACT content delivery campaign."