PSINet Hong Kong Spearheads New Phase of Growth with The Completion of Acquisition by CITIC Pacific

Strong Hong Kong base provides window for value-added Internet solutions to connect Greater China and the world

HONG KONG - October 9, 2001 - PSINet Hong Kong Limited today announced it has joined CITIC Pacific Limited (SEHK: 0267) as a wholly owned subsidiary. With the completion of the acquisition, the new PSINet Hong Kong becomes a unique leader in providing end-to-end Internet services and solutions in Greater China.

Through this integration, PSINet Hong Kong now gains access to the CITIC Pacific group!|s portfolio of resources including financial strength, fulfillment capabilities and extensive telecom investment in China to extend its world-class connectivity and solutions to corporations operating in Greater China.

PSINet Hong Kong has already built a strong market position in the SAR by providing enterprises with advanced enterprise solutions such as Virtual Private Network (VPN), dedicated leased line and broadband connection, and value-added solutions including Virtual ISP (VISP), managed network and hosting services. Integrating with CITIC Pacific, PSINet Hong Kong can now provide unique China solutions to Hong Kong and overseas companies with current and future operations in China.

In addition, with its well-established global connectivity through strategic network providers around the world, PSINet Hong Kong can now extend its innovative Internet Protocol (IP) solutions, leading-edge network management and service provisioning in Greater China. This will enable CITIC Pacific Communications to capitalize on the large and fast growing value-added Internet solutions market in the region.

! § PSINet Hong Kong will connect the world to China and vice versa, where the amalgamation of global networks, strong management and world-class practices is unprecedented,! ぴ said Mr. William Kwan, President, PSINet Hong Kong Limited. ! § Revenue from our value-added services has more than doubled in the first three quarters this year. These include customized solutions and consulting services such as security, VPN, managed services and enhanced connectivity services for which demand is fast growing in the whole Greater China region.

The acquisition immediately gives PSINet Hong Kong partnership opportunities with CITIC Pacific Group!|s businesses and this creates tremendous synergy for growth in Greater China. ! § With PSINet Hong Kong!|s heritage of established global connectivity, strong technical know-how and experienced management team, we are now well positioned to take full advantage of the enormous business development and market expansion opportunities in the Greater China region,! ぴ commented Norman Yuen, Deputy Managing Director, CITIC Pacific Limited and Chairman of CITIC Pacific Communications Limited.

! § We are very pleased with the acquisition as it opens up the enormous Greater China market to PSINet Hong Kong, which multiplies our previous addressable market potential by double, if not triple.! ぴ Mr. Kwan added. ! § Combining our strengths in global connectivity and access to network in China via the CITIC Pacific Group, the new PSINet Hong Kong is in a unique position to provide ! ¥ end-to-end!| IP Solutions and Services in Greater China with great success.

Media Contact:
Priscilla Wat
Phone: 852-2170-7536
Email: mediaenquiry@CPCNet.com

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