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Paid, Inc. Receives $600,000 Settlement Agreement
WORCESTER, Mass., May 12, 2005 /PRNewswire-FirstCall via COMTEX/ --
Paid, Inc. (OTC Bulletin Board: PAYD), a seller of collectibles, an ecommerce software developer and provider of services to celebrities, today announced that it has received $600,000 as a settlement with Leslie Rotman related to the value of a movie poster collection it purchased as part of a merger with Rotman Collectibles in 2001.

On October 23, 2001, Rotman Collectibles, Inc. owned by Leslie Rotman, the mother of Gregory and Richard Rotman, CEO/President and CFO of Paid, Inc. respectively, was merged into Paid, Inc., formerly known as Sales Online Direct, Inc. Rotman Collectibles' assets primarily consisted of a movie poster collection which was independently appraised at a value in excess of $2 million. As consideration for the merger, Paid, Inc. issued a 6% convertible promissory note equal to $1 million which was paid in full through the issuance of stock during the first quarter of 2002.

Based on the sales of the Rotman Collectibles assets to date and current sales projections, Paid Inc. does not expect to generate revenues equal to the appraised value of the poster collection. Leslie Rotman contends that the posters sold for a lower retail value due, in part, to timing of the sales and a general economic decline. To settle any possible differences or disputes between the value paid and the value received, Paid, Inc. and Leslie Rotman have entered into an agreement whereby, Leslie Rotman has delivered 2 million shares of Paid Inc.'s common stock, with a fair market value of $600,000 (based on a closing bid price of the Company's common stock of $.30 on Friday, May 6, 2005) into escrow and has granted Paid Inc. an option to purchase the shares for $.001 per share. The option is assignable by Paid Inc. in whole or in part. This transaction will be reflected in the Company's second quarter 2005 financials.

"We were disappointed that the posters sold for less than the appraised value and are grateful that Leslie Rotman has entered into this settlement with us," said Greg Rotman, CEO of Paid, Inc. "While some of the reasons for the posters selling below their appraised value may have been beyond Paid or Leslie Rotman's control, we felt it was in the best interest of Paid's shareholders that we sought a settlement for the difference in realized and appraised value. Since the value of Paid, Inc.'s stock has appreciated considerably since the merger with Rotman Collectibles, we feel that this is a fair settlement and that ultimately, both parties have been made whole."

About Paid, Inc.:

Paid's innovative products and services are utilized in online auction management, ecommerce and web site development and hosting. Using proprietary technology, Paid, Inc. is a respected developer of dynamic, cutting edge celebrity web sites and ecommerce storefronts that attract tens of thousands of visitors daily. Paid's Auction Inc brand auction management and shipping calculation software utilizes Paid's patent-pending process technologies to streamline back-office and shipping processes for online auctions and e- commerce. Paid's Rotman Auction is an eBay Platinum Powerseller that sells thousands of items -- primarily sports, Hollywood and Americana collectibles and memorabilia -- each week on eBay. The company also builds and maintains large database-driven portals across a broad array of industries. The Company's common stock is traded on the Nasdaq OTC Bulletin Board under the symbol PAYD. 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 about movie poster value and sales. 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.

CONTACTS
Media Contact: Julie Shepherd of Accentuate PR, [phone],

[e-mail]


Investors, Jens Dalsgaard of Redwood Consultants, LLC, [phone],

[e-mail]

SOURCE Paid, Inc.

Julie Shepherd, Media Contact of Accentuate PR, [phone],
[e-mail]
; or
Jens Dalsgaard, Investors contact of Redwood Consultants, LLC, [phone],

[e-mail]


http://www.prnewswire.com


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