AEROSMITH Team With PAID INC.'s Celebrity Services Division To Manage Fan Club

Paid, Inc., a cutting-edge developer of celebrity web sites and services and ecommerce software, announced Thursday (Oct. 14) that it has entered into an agreement with AEROSMITH's holding company to manage all aspects of the band's official fan club, Aero Force One, also known as AF1. The two-year contract is valued between $6,000,000 to $10,000,000 in gross revenues, pending the band's touring schedule. It includes new revenue streams benefiting Paid, Inc., and an equity provision for AEROSMITH band members.

"We owe our success to the fans who have supported us through the years," AEROSMITH said in a joint statement. "We spent a great deal of time and effort to select a fan club management company that can help reward our fans for their loyalty. After reviewing dozens of companies, we selected Paid, Inc.'s Celebrity Services division because we believe they demonstrate an appreciation for the relationships between celebrities and their fans. They have a true understanding of what types of activities, events and merchandise attract and satisfy AEROSMITH fans and keep them coming back for more."

Under the terms of the contract, the Celebrity Services division of Paid, Inc. will seamlessly assume responsibility for AF1's promotional programs and its web site. It will fully integrate fan- management services with AEROSMITH's other affiliations, including the record label, radio sponsors and Internet partners.

In addition, Paid, Inc.'s Celebrity Services will create and market a wide variety of new, innovative ways to participate in the AEROSMITH fan community experience. AF1's more than 120,000 registered fans — and the approximately 21,000 fan club members — will have access to exclusive event opportunities and online content, allowing fans to connect with AF1, the band and each other.

"AEROSMITH has one of the largest fan clubs of any music group, and we're tremendously excited about the opportunity to put our proven expertise to work for the band and its fans," said Greg Rotman, CEO of Paid, Inc. "We share a vision for taking the fan experience to new levels. We're developing unique velvet rope packages, special events and competitions exclusively for fan club members that will blow their minds. AEROSMITH 'Battle of the Bands' competitions judged by a representative from the band, a series of fan club member parties across the country, online treasure hunts and a virtual museum of archived AEROSMITH memorabilia provided by the fans are just a few of the ideas that we anticipate introducing. This is a win-win-win situation for AEROSMITH, Paid, Inc. and fans, as all benefit from improved customer service and fulfillment and a broader array of product and event package offerings."

The contract with AEROSMITH marks a milestone in the execution of Paid's previously announced strategy of expanding its Celebrity Services division capabilities into the music and entertainment industries. With the significant expansions planned for the fan club and the addition of the online merchandising opportunities enabled by Paid's unique ecommerce business model, Paid seeks to achieve gross revenues upward of $6,000,000 to $10,000,000 in a touring year. Revenues in a non-touring year are expected to be lower.

Among the newly planned services creating additional revenue are expanded "Velvet Rope" experiences, travel packages and new programs and events. For example, with a premium "Velvet Rope" package purchase, Paid anticipates fans will be treated to special backstage tours at concerts; attend VIP pre- or post- concert events; and receive upgraded concert seats and/or upgraded travel packages or other benefits. Paid also is proposing expanded merchandising programs to include new limited-edition memorabilia with unique items added based on fans' suggestions. The AF1 web site also will offer live chats, message boards and games. An AF1 Affinity Fan Card also is being planned with real dollars off at the AF1 online store and discounts at other vendors.

"AEROSMITH fans are incredibly loyal and supportive of the band and we believe that they should be treated with the utmost respect and care," said Greg Rotman. "We believe our investment to reach out to these long-time fans will build an invaluable level of trust between Paid and AEROSMITH's fans."