Enters into an agreement to acquire T3 Communication Partners and all its subsidiaries for up to $A5 million.

Pacific Internet Limited, an Internet communications service provider, yesterday announced that its wholly owned subsidiary in Australia, Pacific Internet (Australia) Pty Ltd, has entered into an agreement to acquire T3 Communication Partners Pty Ltd, a provider of communication services, along with all its subsidiaries (T3 Communications) for up to $A5 million.

The deal consists of an $A3 million upfront payment and up to $A2 million over the next 12 months. Carlos Perez, T3 Communications' Managing Director, said, "We're excited about being part of Pacific Internet and further developing first class services for SMBs."

Dennis Muscat, Pacific Internet Australia's Managing Director, said, "With the acquisition of T3 Communications, Pacific Internet has strengthened its position as a leading Australian communications provider that can bundle telephony and broadband for SMBs. T3 Communications is a successful business that will be gradually integrated into Pacific Internet's operations. We plan to keep all staff and the Sydney office will remain operational."

Bien Kiat Tan, Chairman of Pacific Internet Limited, commented, "We expect to achieve substantial synergies and benefits through this transaction. T3 Communications' operational excellence, proven customer satisfaction and expertise in the SMB market are consistent with Pacific Internet's approach. We believe there will be further opportunities for us as we move forward to combine its successful voice offerings with our growing Internet data business to present a wider suite of value adding solutions."