PAYD Paid Inc (PK)

PAID Inc. (OTCBB: PAYD) has been focused on growing revenue, driving efficiencies and bringing the company to profitability. PAID reported Record total revenue of $7,093,500 and $10,661,100 for the third quarter of 2012 and for the nine months respectively. This compares with revenue of $1,620,400 and $4,006,200 for the same periods last year.

"PAID is having its best revenue year ever and we expect progress to continue," said Austin Lewis, PAID Inc. CEO. "The company is focusing on growing our VIP Experiences, streamlining costs, while continuing to provide excellent service and value to our clients and fans. New business prospects and other activities currently in the new business pipeline are making us feel comfortable that 2013 should be another strong year."

Proforma Results:

"The true operating results have been overshadowed by certain accounting treatments, specifically option compensation and stock price guarantees which are non-cash and non-operating charges," said Christopher Culross, PAID Inc. CFO. We have been very focused on cutting excess overhead and streamlining the operational processes so that we can achieve profitability. The results of our initial efforts which included salary and headcount reductions, reductions in legacy IT costs, and reductions in general administrative costs, produced a profit from operations in the third quarter of 2012 of $318,600 on a proforma basis.

                                                    Three Months Ended
                                               ----------------------------
                                               September 30,  September 30,
                                                    2012           2011
                                               -------------  -------------
Revenues                                       $   7,093,500  $   1,620,400
Cost of revenues                                   5,509,100      1,010,500
                                               -------------  -------------
Gross profit                                       1,584,400        609,900

Operating expenses                                 1,265,800      1,299,400
                                               -------------  -------------
    Income (loss) from operations                    318,600       (689,500)
                                               -------------  -------------

Reconciliation of non cash expenses to
 reported results
  Option compensation                                352,300        113,000
  Stock price guarantee                              231,100              -

Reported loss from operations                  $    (264,800) $    (802,500)
                                               =============  =============

Operating Cash Flows "Positive cash flow continues to be a high priority for us," said Lewis. "We have moved our reliance off of issuing stock options for payment of services and compensation, and have moved our focus to reducing costs, and as a result, operating cash flows in the third quarter of 2012 increased $406,400."

                                                Nine Months
                                                   Ended        Six Months
                                               September 30,    Ended June
                                                    2012         30, 2012
                                               -------------  -------------
Net loss                                       $  (3,586,000) $  (2,674,700)
Depreciation and amortization                         56,000         33,700
Unrealized gain on investment                         24,400         51,600
Share based compensation                             532,500        180,000
Amortization of prepaid facility costs               227,800              -
Change in fair value of stock price guarantee        919,500        236,200
Fair value of stock options awarded
in payment of outside services and
 compensation                                      2,166,800      2,070,900
Deferred revenues, net of prepaid royalties         (100,700)      (870,500)
Changes in current assets and liabilities           (523,900)       282,600
                                               -------------  -------------
  Net cash provided by (used in) operating
   activities                                  $    (283,600) $    (690,000)
                                               =============  =============

Management's Plan PAID, Inc. will continue to streamline its operations with a focus on core revenue generating activities. PAID, Inc. is a leader in custom developed VIP experience programs. "PAID's new client acquisition strategy is centered on the plan to hone its competitive edge by taking VIP experience programs to the next level with expanded direct-to-consumer reach and engagement via mobile and wireless communications channels, the addition of higher-margin travel package services and VIP programs designed to support celebrity client charitable fundraising and awareness campaigns," said Keith Garde, President of PAID Inc. celebrity services. PAID, Inc. will be reaching beyond its celebrity clients' consumer-level fan bases and increasing the volume of VIP experience package sales by targeting corporate and institutional demand for VIP experience and travel packages.

Patent Update We continue to work with our legal counsel and believe we are making progress in our efforts to maximize the value of PAID's intellectual property on behalf of shareholders.

About PAID Inc.: PAID Inc. is a one-stop brand management and marketing resource to music, entertainment and sports personalities and organizations, and offers AuctionInc™ online shipping calculation and shopping cart software employing its patented technology to streamline ecommerce. Known for quality and customer service, PAID offers turnkey online, mobile, social media and traditional marketing campaigns, as well as award-winning video & film production, VIP ticketing, web site design, merchandising, ecommerce and fan community management programs. More details are available at www.paid.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the markets, variations in the company's cash flow, competition, celebrity programs, business development efforts, technology availability and cost of materials and other risk factors. Factors that could cause actual results to differ materially are discussed in the Company's most recent filings with the Securities and Exchange Commission.

CONTACT: Austin Lewis 617-861-6050 Email Contact