<B>Paperloop Reaches Agreement with PacificNet</B>

Paperloop.com and PacificNet Holding Corp. reached an agreement in principle to form a strategic alliance. Under the terms of the proposed agreement, the alliance will initially involve the exchange of editorial content between the two websites and, at a later date, development of e-commerce services between China and the rest of the world.

Under the terms of the proposed agreement, paperloop will be supplying editorial, advertising and marketing services to PacificNet in exchange for an equity interest in the company.