1. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Making Dollar Sense of Broadband Tan Tong Hai President and CEO 21 August 2003

2. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF My Background

3. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF PacNet: At-A-Glance Asia’s largest Telco-independent Communications Service Provider by geographic reach Full-service provider serving both Corporate and Consumer customers Presence in seven markets – Singapore, Hong Kong, Philippines, Australia, India, Thailand, Malaysia Over 1,000 employees across region Listed on NASDAQ since 1999

4. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Today’s Business Challenges Increased competition in the midst of uncertain times Watch overheads. Grow business with less Increased customer expectation – speed, quality, service, cross- border/cross-industry capabilities. Macro level challenges – war, SARS, terrorism, etc. “Only the Paranoid Survive”

5. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Growing Communications Demands Communications technology has evolved far beyond basic telephone/fax Wireless Computing & handheld devices are fast gaining popularity Businesses increasingly dependent on multiple communication applications

6. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF E-mail Virtual Private Network VoIP Interactive Voice Response Voice messaging Intranet Mobile GPRS / 3G Video Conference WiFi SMS High speed network Users Bombarded with Choices

7. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF More Communications Needs with Globalization Insurance companies - network of independently owned remote offices to generate sales/settle claims. Banks - Branches serve as hub for customer service and sales outlets. Electronic approvals overseas. Logistics companies - Relies on linked network of offices, depots and hubs to move goods and information Healthcare organizations - Depend on shared patient and billing information across network of hospitals, clinics, laboratories, diagnostic centers, offices. …Etc.

8. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF With increased needs for communications, how do you contain cost?

9. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Developments in the Info-Communications World DataVoice CONVERGENCE Broadband Growth “On- Demand” Services

10. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF 1. On-demand Services

11. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF “Services-on-Tap” Delivering IT services (hardware, software, provisioning, and maintenance) by plugging into service provider(s). Pay for usage only. By 2006, subscriptions to “IT utilities” as a viable alternative to acquiring and owning IT systems will rise from 15% today to more than 30% of enterprises*. The market for utility services in North America is expected to grow from US$8.6 billion in 2003 to more than US$25 billion in 2006.* * Source: Gartner 2003

12. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF “Services-on-Tap” Pay-as-you-use Broadband 1500 Email AntiVirus/AntiSpam Internet Backup Web Conferencing VoIP Etc.

13. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF 2. Broadband Growth

14. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Broadband Growth – Asia Pacific Overview AP region will continue to grow and lead in broadband access –Various modes of broadband access, e.g. ADSL, FTH, cable access, wireless BB, etc. –Strong take-up by SMEs for fast speed Internet access as it is more affordable than leased circuits

15. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF What is Your Idea of Broadband? Most users still use broadband mainly for Web surfing, e-mailing, downloading big files Broadband not fully utilized “Broadband is just a fatter pipe for most users.”

16. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Can We Squeeze More Dollars and “Sense” out of Broadband? How much are you paying for broadband access now? How much are you paying in addition for your other communications services? Can we drive other communication services through the same broadband pipe that you’ve already paid for?

17. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Typical Office Set-up PSTN PABX Internet File Server E-Mail Server Application Server ADSL Broadband IDD Calls $ $$$$$$ Are we spending too much money on fixed assets? After spending so much money on the IT/Comms infrastructure, why do we still end up going back to office to use them? Can we buy more services as and when we need them?

18. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Better Office Set-up Internet E-Mail ADSL Broadband VoIP Back-Up IP-PABX Web-Conferencing LAN Work from Home Pay-as-you-use ADSL/Cable Broadband WiFi Mobile Access

19. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Even More Flexible Office Set-up Internet E-Mail VoIP Back-Up IP-PABX Web-Conferencing Wireless LAN WiFi Mobile Access Work from Home ADSL/Cable Broadband ADSL Broadband Pay-as-you-use

20. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Let’s look at some real $ now...

21. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Outsource Email Services SCENARIO: Email for a 20 users office In-House Set-up: S$5,000 – (Hardware) S$4,000 – (Software) S$4,000 – Back-Up H/W + S/W S$13,000 over 3 years = S$361/month S$2,320 – Loaded Monthly staff cost (Engineer) S$25 – Monthly Hardware maintenance Total (Annum) = S$32,472 Email Outsourced: $248 per month – (20 users) $50 – Setup Cost (one-off) Total (Annum) = S$3,026 * Cost are estimates before discounts and for a standard configuration with back-up features $29,000 Saving / annum

22. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF IDD Cost for Small and Medium Enterprises IDD callsVoice Over Internet Protocol Est. $500 to $4,000 per month 30% to 70% less than IDD calls - Additional VoIP equipment cost: $1,800 to $3,000

23. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Cost Comparison – IDD vs VoIP SCENARIO: A Typical SME spending on IDD calls is about S$1,500 per month. 25% of the calls goes to overseas branch, 75% other locations. Typical cost saving of VoIP to IDD is about 50%, HQ to Branch Free. IDD (Per Annum): Branch calls = $4,500 Other Location calls = $13,500 Total IDD charges = S$18,000/year VoIP (Per Annum): Other location calls @ 50% = $6,750/year Branch Calls = $1000/year (VoIP H/W cost amortized over 3 years for 2 locations) Total = S$7,750/year $10,000 savings per year

24. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Does it make Dollar & “Sense” now? Are you getting the best value out of your broadband connection?

25. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Which office do you want?

26. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Typical Office Set-up PSTN PABX Internet File Server E-Mail Server Application Server ADSL Broadband IDD Calls $ $$$$$$ Are we spending too much money on fixed assets? After spending so much money on the IT/Comms infrastructure, we still end up having to go back to office to use them? Can we buy more services as and when we need it? $

27. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Better Office Set-up Internet E-Mail ADSL Broadband VoIP Back-Up IP-PABX Web-Conferencing LAN Work from Home Pay-as-you-use ADSL/Cable Broadband WiFi Mobile Access

28. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Let’s start to use our broadband connection more effectively !

29. 2002 © Pacific Internet NASDAQ: PCNTF2003 © Pacific Internet NASDAQ: PCNTF Thank You www.pacnet.com It’s possible to do more with less! It’s possible to do more with less!