SoftNet Systems, Inc. and Pacific Century CyberWorks Announce $129 Million Investment and International Joint Venture

San Francisco and Hong Kong (PROTEXT) - Pacific CenturySoftNet Joint Venture Formed to Collaborate on SatelliteDelivered Broadband Internet Services to 110 Million Asian CableHouseholds. SoftNet Systems, Inc. (Nasdaq: SOFN) and Pacific CenturyCyberWorks ("PCCW"; Reuters: 1186.HK; Bloomberg: 1186) announcedtoday a strategic investment and a joint venture to collaborateon broadband internet, cable modem and satellite projects usingtechnologies, products and services of both companies. Under theagreement announced today, PCCW, a Hong Kong based internationalbroadband convergence company majority owned by Pacific CenturyGroup will invest $129 million to purchase 5 million shares ofSoftNet stock. The two companies have agreed to form a JointVenture, "Pacific Century SoftNet" that will market products andservices to cable operators throughout 63 countries serving 110million Asian cable households. The Joint Venture will leverage SoftNet's experience in theU.S. to accelerate the build out of PCCW's targeted cableoperators. In addition, the joint venture will explore thedelivery of PCCW's converged Internet and Video service toSoftNet's existing 2.4 million homes passed under contract,including the pending 1.0 million homes passed under the recentlyannounced Mediacom agreement, and other MSO's throughout the U.S.The Joint Venture will also market SoftNet's Intellicom VSATcapability to MSO's, ISP's and businesses in the 63 countries ofPCCW's service area. Mr. Richard Li, PCCW's Chairman, said, "SoftNet hasdemonstrated its capabilities in the U.S. We believe SoftNet hassignificant expertise that will enable the rapid upgrade anddeployment of 2-way cable broadband systems throughout the Asianservice area. We see our investment in SoftNet as a vehicle toform a strong relationship with a leading U.S. cable modem andsatellite services company and to secure a "beach head" forlaunch of our converged Internet and Video Service in the U.S.market". Dr. Lawrence B. Brilliant, SoftNet's chairman and chiefexecutive officer, said, "The investment by PCCW and our JointVenture represents a vehicle to rapidly enter a very large Asianmarket. Richard Li and his management team have a proven trackrecord including the creation of Star TV. Their reputation withAsian cable operators will allow us to rapidly deploy PCCW'sconverged Internet and Video service. The Joint Venture alsoincreases our market to deliver Intellicom high-speed satelliteInternet service to ISPs, MDUs, hotels, and businesses in 63Asian countries. In addition, we look forward to teaming withPCCW to expedite their launch and take PCCW's converged Internetand Video service to the U.S." Mr. Ian Aaron, SoftNet's president, said, "This Joint Venturerepresents a tremendous global opportunity as well as enablesSoftNet to increase the breadth and quality of service to itsexisting U.S. cable partners and their respective cablecustomers." About SoftNet Systems, Inc. and ISP Channel SoftNet Systems, Inc. is one of the top three largestbroadband Internet providers over cable in the U.S. Through itsISP Channel, the company provides a complete turnkey Internetservice to partnering cable affiliates, similar to @Home. ISP Channel's services to partnering cable affiliates includecable head- end equipment and integration, Internet backboneconnectivity, and technical support and customer care twenty-fourhours a day, seven days a week. ISP Channel offers its customershigh speed Internet access at speeds up to 500 KB per second whendownloading files, graphics, audio and video. Additional ISPChannel services include e-mail, personal web pages, news groups,and full multi-media capabilities. ISP Channel also providesaccess to Microsoft(R) Internet Explorer and Netscape(R)Navigator browsers. Through SoftNet's Intellicom subsidiary, the company markets asatellite- based VSAT commercial Internet link. SoftNet's uniquecost-saving technology infrastructure includes Intellicom VSATsatellite links to the company's network operations center (NOC),which replace more expensive terrestrial telecommunications datalines. SoftNet's NOC is located in Silicon Valley, while itscorporate headquarters is located in San Francisco. For furtherinformation about SoftNet and its services, please visithttp://www.softnet.com, http://www.ispchannel.com or call 415-365-2500. About The Pacific Century Group The Pacific Century Group (http://www.pcg-group.com) wasestablished in October 1993 with proceeds from the sale of STARTV, the first pan-Asian satellite television network, operatingin more than 50 countries, to News Corp. At the sale, which wascompleted in 1995, the valuation of the enterprise was US$950.5million. The total original investment in STAR TV, which Mr.Richard Li founded in 1990, was US$125 million. Pacific Century CyberWorks, the Group's technology flagshiphas Intel (12%) and CMGI (4.9%) as its strategic investors. Oneof its subsidiaries, Pacific Convergence Corporation's objectiveis to be the preeminent provider of broadband Internet servicesin Asia via its satellite network serving 110 million connectedcable households. The Pacific Century Group is the sole partner with theGovernment of Hong Kong in the approximately US$1.6 billionCyber-Port project (http://www.cyber-port.com) announced by theFinancial Secretary Donald Tsang in his 1999 Budget. The Cyber-Port is a comprehensive facility designed to foster thedevelopment of Hong Kong's information services sector throughthe formation of a strategic cluster of both informationtechnology and services companies at the one location. The Group's aim is to build on its expertise and knowledge ofdigital technology and new media to become a preeminent leader inInternet content and services such as eCommerce. The Groupbelieves there are tremendous synergies between its existingactivities in this field and future business opportunities. TheGroup's parallel involvements in the Cyber-Port and PCCW's fast-growing information technology and Internet sectors, and itsacquisition of Pacific Convergence Corporation, will help secureHong Kong's position as a hub of Asia-focused eCommerce andInternet content development, and create new opportunities forthe best talent in the region. Safe Harbor statement under the Private Securities LitigationReform Act of 1995: Except for historical information, thematters discussed in this news release that may be consideredforward-looking statements may be subject to certain risks anduncertainties that could cause the actual results to differmaterially from those projected, including uncertainties andother risks detailed from time to time in the Company'sSecurities and Exchange Commission filings. ots Original TextService: SoftNet Systems, Inc. Internet:http://www.newsaktuell.de Contact: Jody P. Flynn, Director,Public Relations of SoftNet Systems, Inc., (USA) 415-365-2510, or(USA) 415-365-2511, jflynn@softnet.com; or Jeff Goldberger ofStern & Company, (USA) 212-888-0044, goldberg@stern-co.com, forSoftNet Systems, Inc.; or Rebecca Leung of PCG Public Relations,(USA) 852-2514-8647, pr@pcg-group.com, for Pacific Century GroupWeb site: http://www.softnet.com

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