Pacific Online Limited — Capital/Financing Update 2008

Jan 11, 2008

The Securities and Futures Commission of Hong Kong, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Shares mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities may not be offered or sold in the United States except pursuant to registration or an exemption from the registration requirements of the Securities Act. Any public offering of securities to be made in the United States will be made by means of an offering circular that may be obtained from the Company and will contain detailed information about the Company and management, as well as fi nancial statements.

Unless defi ned herein, terms in this announcement shall have the same meanings as those defi ned in the prospectus dated 5 December 2007 (the “Prospectus”) issued by the Company.

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Pacifi c Online Limited 太平洋網絡有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 543)

STABILISING ACTIONS AND END OF STABILISATION PERIOD

The Company announces that the stabilisation period in connection with the Global Offering ended on 9 January 2008.

The stabilising actions undertaken by BNP Paribas Capital (Asia Pacifi c) Limited, its affi liates or any person acting for it, during the stabilisation period were as follows:

• (1) over-allocations of an aggregate of 42,750,000 Shares in the International Offering;

• (2) the borrowing of an aggregate of 42,750,000 Shares from Pac Tech Investment Co. Ltd. pursuant to the Stock Borrowing Agreement, solely to cover over-allocations in the International Offering; and

• (3) the purchases of a total of 42,750,000 Shares on the market at the price range of HK$2.65 and HK$3.3 per Share (exclusive of brokerage, SFC transaction levy and Stock Exchange trading fee). The last purchase of 209,000 Shares in the course of the stabilising actions was made on 31 December 2007 at the price range of HK$3.14 to 3.30 per Share.

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The Company announces that the stabilisation period in connection with the Global Offering ended on 9 January 2008. The stabilising actions undertaken by BNP Paribas Capital (Asia Pacifi c) Limited, its affi liates or any person acting for it, during the stabilisation period from 10 December 2007 to 9 January 2008 were:

• (1) over-allocations of an aggregate of 42,750,000 Shares in the International Offering;

• (2) the borrowing of an aggregate of 42,750,000 Shares from Pac Tech Investment Co. Ltd. pursuant to the Stock Borrowing Agreement, solely to cover over-allocations in the International Offering; and

• (3) the purchases of a total of 42,750,000 Shares on the market at the price range of HK$2.65 and HK$3.3 per Share representing approximately 15% of the Offer Shares initially offered under the Global Offering before any exercise of the Over-allotment Option, to, among others, cover over-allocations in the International Offering. (exclusive of brokerage, SFC transaction levy and Stock Exchange trading fee). The last purchase of 209,000 Shares in the course of the stabilising actions was made on 31 December 2007 at the price range of HK$3.14 to 3.30 per Share.

The Global Coordinator has not exercised the Over-allotment Option during the stabilisation period and the Over-allotment Option lapsed on 9 January 2008.

The announcement is made pursuant to the requirement of section 9(2) of the Securities and Futures (Price Stabilising) Rules (Chapter 571W of the Laws of Hong Kong).

By order of the Board Pacifi c Online Limited LAM WAI YAN Chairman

Hong Kong, 11 January 2008

As at the date of this announcement, the Directors are: Executive Directors: LAM Wai Yan, HO Kam Wah, WANG Jeff Da-Shin, ZHANG Cong Min and TSUNG Shih Kin Samuel

Independent non-executive Directors: TSUI Yiu Wa Alec, BECZAK Thaddeus Thomas and LOUIE Ming

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