OTCBB ALERTS

[Mandroid]

Paid, Inc. PAYD) today announced its financial
results for the year ended December 31, 2005 with a record increase in
revenues of 165% over the previous year and dramatically improved
revenues for a second consecutive year. In 2005, Paid, Inc. had gross
revenues of $4,920,100 compared to $1,853,000 in 2004 -- an increase
of approximately $3,067,600
The primary reason for the increase in revenues was the celebrity
services business' sales of ticket and fan experience packages, fan
club memberships and merchandise related to the start of a tour by a
major performing artist client in late October 2005. Paid also noted
higher revenues from its sports marketing business. This was offset by
a decline in sales of the Company's sports and Hollywood memorabilia
product as the Company shifted its focus from online auction sales of
these products to the more lucrative celebrity services business.
"We are extremely pleased with the growth of our celebrity
services business in 2005 and the fact that our investment in ramping
up to service major performing artists is starting to pay off for the
company," said Greg Rotman, CEO of Paid, Inc. "Although our client's
first tour commenced about four months later in 2005 than we
originally anticipated, the consumer demand for our products and
services related to the tour met our expectations and served to prove
our business model. We have a highly scaleable business model and
expect to realize economies of scale as we expand our client base of
performing artists with major tours and other programs."

Revenue Sources

For 2005, Paid's Celebrity Services business generated revenues of
$3,228,400 from fan experience packages, fan club memberships and
related merchandise and $357,200 from sports marketing revenues
accounting for 66% and 7 % of total revenues respectively, compared to
celebrity services revenues of $126,500, 7% of gross revenues, and
sports marketing revenues of $90,200, 5% of gross revenues, in 2004.
Sales of the Company's own product and fees from buyers and sellers
through the Company's Rotman Auction operations declined to
$1,299,800, 26% of revenues, in 2005, from $1,613,500 or 87% of gross
sales in 2004. Revenues from advertising and web hosting fees were
$33,900, less than 1% of gross revenues, in 2005, compared to $17,500,
or 1% of revenues, in 2004.

Gross Margin Increases 116%

Gross margin from total sales in 2005 was $1,487,500, a 116%
increase over gross margin of $689,600 in 2004. Gross margin from
Company owned product sales in 2005 was approximately $433,600,
$177,300 less than in 2004. Since gross margin percentages on Company
owned product were 5% less and sales of Company owned product were
$313,700 lower in 2005, the Company produced $177,300 lower gross
margin dollars in 2005. The decrease in sales and gross margin is
attributable to a management decision to streamline sales channels for
company owned product and, in turn, terminating sales on eBay, in an
effort to reduce related overhead.

Operating Expenses

Total operating expenses for 2005 were $4,561,400 compared to
$4,272,100 for 2004, an increase of only $289,300. Sales, general and
administrative (SG&A) expenses increased $524,000 to $4,016,200 in
2005 due to increases in payroll, travel, credit card commissions,
postage, shipping and professional fees which were principally
attributable to celebrity services for the tour of a major performing
artist. This was offset by decreases of $187,800 in
depreciation/amortization and $234,600 in planning, maintaining and
operating the company's web sites.
"During 2005, we signed contracts with two artists and multiple
sports celebrities and made considerable investments in personnel and
other resources to ramp up our celebrity services business," Mr.
Rotman noted. "We expect staff growth to proceed at a slower pace as
our client base expands due to efficiencies of scale. We expect
related costs for travel, postage, tickets and so on to be a
relatively consistent percentage of total revenues for each artist's
fan club, providing that travel and postage vendors keep their rates
steady. We believe that these costs will be more than amply offset
with ticket and fan experience package, merchandise and membership
revenues. As projected earlier, the many technology costs and related
technical staff associated with fan club tour ticketing were one-time
charges that are now behind us with the exception of ongoing
maintenance and regular upgrades."

Interest Expense, Long Term Debt Decreases

The company had interest expenses of $294,800 in 2005 compared to
$497,300 in 2004, a decrease of $202,500. As of December 31, 2005 the
Company has outstanding $1,150,000 of convertible debt through a
Series B note with Augustine Fund LLC. During the fourth quarter of
2005, Paid did not receive any conversion requests from Augustine Fund
with respect to the Series B note.
During the first quarter of 2005, the balance of the Series A note
with Augustine Fund in the amount of $251,900 was settled through
conversions to common stock.

Assets

At yearend 2005, total assets were $4,229,600 compared to
$1,764,900 in 2004. The 140% increase was primarily due the $999,800
remaining balance of the acquisition of a large collection of movie
poster inventory and cash and deferred expenses totaling $1,880,000
associated with sales of tickets to entertainment events to be held
during the first quarter of 2006, offset by depreciation and
amortization totaling $805,800. Paid also reports a related liability
to customers, in the form of deferred revenues, at yearend, 2005 of
$2,305,300.

Net Loss

The Company realized a net loss for 2005 of $3,100,700 compared to
a loss of $4,079,700 for 2004. Losses in both years represented $.02
per share.
"As in the past, a very large part of our net loss for the year is
not a cash loss, but due to large depreciation and amortization
charges related to our property, equipment and other intangible
assets," said Richard Rotman, CFO and COO of Paid, Inc.

Operating Cash Flows

A summarized reconciliation of the Company's net losses to cash
used in operating activities for the 2004 and 2003 is as follows:
-0-
*T
2005 2004
----------------- ----------------
Net loss $(3,100,700) $(4,079,700)
Depreciation and amortization 805,800 1,077,900
Amortization of beneficial
conversion
Discount and debt discount 103,900 291,500
Common stock issued in payment
services 1,632,500 1,401,500
Common stock issued in payment of
interest 137,200 315,200
Net current assets and liabilities
associated with advance ticketing $1,749,000 --
Call options (268,000) --
Changes in current assets and
liabilities 356,400 264,900
----------------- ----------------

Net cash used in operating
activities 1,416,100 $(728,700)
================= ================
*T

Working Capital and Liquidity

Paid had cash and cash equivalents of $1,503,000 at yearend 2005,
an increase of 246% compared to $43,500 at yearend 2004. The Company
had $152,300 of working capital at yearend 2005 compared to a deficit
in working capital of 542,800 at yearend 2004. Current liabilities at
the close of 2005 were $3,787,700 compared to $1,446,000 at December
31, 2004. Current liabilities increased at the close of 2005 compared
to 2004 primarily due to deferred revenues of $2,305,000 associated
with events scheduled for the first quarter of 2006.
To access the entire contents of Paid, Inc.'s 2005 10-KSB Annual
Report, go to www.sec.gov and enter PAYD in the ticker field.

Update and 2006 Guidance

"Celebrity services' sales of ticket and fan experience packages
were very strong in fourth quarter 2005 and first quarter 2006," said
Greg Rotman. "The last shows in March and April 2006 of a planned tour
were cancelled due to illness. Paid is offering various refund options
to its customers. The revenues from shows that occurred in January and
February will be recognized as revenues in first quarter 2006."
Mr. Rotman added, "Another Paid client expects to begin touring in
May. Paid is coordinating VIP ticket packages and fan club memberships
for that artist. Ticket sales for that tour are already underway and
will be recognized as revenue when the events take place in future
quarters."
Paid's sports marketing business grew steadily in 2005, with
Kristen Kuliga serving as an NFL player agent for 10 players at
yearend 2006. Additionally, Paid expanded its client roster for other
sports marketing and event management services. The Company's sports
marketing and event management services complement our celebrity
services offering and create synergies that benefit both areas.
Rich Rotman noted, "In early 2005, we made the decision to shift
our sales of sports and Hollywood memorabilia off of eBay and sell
through various retain means, charity auctions, dealers and
distributors to decrease the associated overhead and free up valuable
resources. We successfully transitioned some employees previously
involved in servicing our eBay auctions into other, higher margin
activities in our celebrity services business. We anticipate that we
will continue to utilize our current sales channels to sell the sports
memorabilia received as in-kind payments from certain sports celebrity
web sites and company-sponsored autograph signing events."
Paid continues to work with the U.S. Patent & Trademark Office
(USPTO) through its patent attorneys at Hunton & Williams regarding
its pending patent application for online auction shipping calculation
technology.
Greg Rotman concluded, "We made significant investments in 2005 to
build the platform for Paid's future growth. During 2006, we are
leveraging these investments to help us achieve our goals of expanding
our client base, increasing revenues and progressing toward
profitability."

About Paid, Inc.:

Paid, Inc.'s celebrity services provides famous people with
official web sites and fan club services that include e-commerce
storefronts, ticketing and fan experience packages, and web site
content to attract tens of thousands of visitors daily. The Company
also sponsors autograph signing events and other sports marketing
services for sports clientele. Using proprietary patent-pending
technology, Paid's innovative AuctionInc brand shipping calculation
and auction management software and services are utilized to
streamline online auctions, ecommerce and web site development and
hosting. For further information, visit http://www.paid.com.

Forward Looking Statements:

This Press Release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 that are based upon current
expectations or beliefs, as well as a number of assumptions about
future events, including matters related to the Company's operations
and expectations for activities with major celebrity clientele,
merchandise sales and the patent application. Although the Company
believes that the expectations reflected in the forward-looking
statements and the assumptions upon which they are based are
reasonable, it can give no assurance that such expectations and
assumptions will prove to have been correct. The reader is cautioned
not to put undue reliance on these forward-looking statements, as
these statements are subject to numerous factors and uncertainties. In
addition, other factors that could cause actual results to differ
materially are discussed in the Company's most recent filings,
including Form 10-KSB with the Securities and Exchange Commission.



KEYWORD: NORTH AMERICA MASSACHUSETTS UNITED STATES
INDUSTRY KEYWORD: ENTERTAINMENT TECHNOLOGY INTERNET SOFTWARE PROFESSIONAL SERVICES EARNINGS
SOURCE: Paid, Inc.


CONTACT INFORMATION:
Accentuate PR for Paid, Inc.
Julie Shepherd, 815-479-1833
[e-mail]