Pacfusion.com Partners Asia-hotels.com to Offer On-line Hotel Reservation Services

December 14th, 1999

Joint Press Release

Singapore, Tuesday, December 14, 1999 - Pacfusion.com, the new e-business unit of Pacific Internet, and Hong Kong-based asia-hotels.com have signed a memorandum of understanding to offer online reservation services for a comprehensive range of hotels and resorts in 17 countries in the Asia-Pacific.

Pacific Internet launched Pacfusion.com in November to focus on opportunities in e-commerce, content, community and communications services. The company plans to invest up to US$50 million in the unit, as it transforms itself from an Internet service provider into an integrated Internet business enterprise.

Under the terms of the MOU, Pacfusion.com will host an integrated hotel reservation web site supplied by asia-hotels.com. The e-Business unit, at www.pacfusion.com. will also bring in potentially lucrative advertising onto the site and expects to attract large numbers of online buyers to Pacfusion.com's e Travel portal. asia-hotels.com will provide its extensive online hotel database and reservation facility and maintain the jointly owned database of users. Both parties will share revenue derived from online transactions and advertising.

Said Mr. Larry Ang, Group General Manager (e-Business) of Pacific Internet, "We expect the synergy from this partnership to bring tremendous mutual benefits. This deal brings together the sophisticated reservation infrastructure of asia-hotels.com and the very significant 'eyeball network' of Pacfusion.com."

"We pride ourselves in offering independent travel advice and added-value services, such as customer reviews, to further assist business and leisure travellers search, select and book their hotel or resort in Asia." Commented Jon Stonham, managing Director of asia-hotels.com. "Our partnership with Pacific Internet will enhance the availability of our specialist Internet travel services to a much wider audience.

Pacific Internet Limited (NASDAQ: PCNTF) is listed on the NASDAQ stock exchange. The Company now offers award-winning services including Internet access, portal sites and the ultimate web lifestyle with the "3Cs" (commerce, content and community).