What “Bad” Economy? Paradise Publishers Revenues Up, Breaking Records

Paradise Publishers Inc. – INVESTOR UPDATE –   February 2011

You’ll be happy to hear about our 63% increase in revenues for 2010 and other exciting news in this Investor Update. We invite you to join in our anticipation of even greater accomplishments to come, as we roll confidently into 2011. We hope you’re doing well and can take a moment now for this brief update, revealing our continued, double-digit growth here at Paradise Publishers Inc.

Last year’s annual update for 2009 was remarkable but the newest numbers for 2010 and early 2011 have dwarfed our past success. Every year since its inception Paradise Publishers’ revenues have grown and this past year was no exception!

The eBook industry is still at the dawn of an exponential boom upwards, driven by global marketing stalwarts, Apple and Amazon, and ever-expanding media attention, in combination with the public’s acceptance and increasing demand for more and more portable devices and content. In fact, these last few months have been our most successful ever! With your loyal support and patient participation, we’re poised to ensure this positive momentum carries throughout this year too.

Sincerely yours,

Nic Gremion
C.E.O. Paradise Publishers Inc.

Martin Wales
President, Paradise Publishers Inc.

Revved Up 2010 Revenue

The revenue streams for Paradise remain diversified between the sales of our premium memberships, author book marketing services, affiliate programs and various advertising programs. The V.I.P. Memberships with Free-eBooks.net remain strong as we attract around 1,000 new subscribers, on average, every single day.

Gross Annual Sales, Year-to-Year: Up 63% in 2010 over 2009

Quarterly Sales, Quarter-to-Quarter: Q4 2010 is up 26% over Q3 2010

Quarterly Sales, Year-to-Year: Q4 2010 is up 84% over Q4 2009

The star performer in our advertising efforts is our Google Adsense program. Our Search Engine Optimization works increased traffic to our sites and stimulated more adsense clicks to push our ad commission revenues up 41.4% for 2010 compared to 2009 figures. This reflects our continued ability and focused effort to be the page one, and frequently the #1 result, for a Google search for “free ebooks” and other keywords.

This marks the 5^th consecutive year our revenues have increased. Every year, since its inception, Paradise Publishers’ revenues have grown and 2010 was no exception.

Finally, we’ve just about wrapped up our 2010 financial audits, as part of work in taking the company public (more below). The financial foundation of Paradise Publishers remains strong and stable, as we maintain positive cash flow and debt free operations.

State of the eBook Union

The revenue growth for Paradise Publishers comes from our strategy to remain on the crest of the virtually endless demand and insatiable desire for digital content. It’s more than plausible and proven by our positive sales and growth that the more people there are looking to ‘buy’ ebooks, the more massive the pool of prospects looking for ‘free’ ebooks.

The American Association of Publishers’ most recent stats provided a snapshot of the ebook industry’s exponential growth, where May 2010 ebook sales grew 162.8 percent for the month ($29.3 million), and year-to-date ebook sales are up 207.4 percent, at that mid-point in the year.

Another strong indicator of non-stop and growing demand for ebook content comes from industry behemoth Amazon.com and their customers’ preferences. Steve Kessel, senior vice president, Amazon Kindle said that, "For the top-10 bestselling books on Amazon.com, customers are choosing Kindle books over hardcover and paperback books combined at a rate of greater than 2 to 1. Kindle books are also outselling print books for the top 25, 100, and 1,000 best sellers--it's across the board." (Source: Cnet News, October 25, 2010, David Carnoy)

Sales of electronic books are expected to hit nearly one billion dollars in the United States this year and to triple by 2015, according to a new report by Forrester Research Inc. The market research firm said US spending on ebooks was expected to total 966 million dollars this year, up from 301 million dollars last year and to reach 2.81 billion dollars in 2015. Forrester said the number of ebook readers with dedicated devices in the United States was expected to grow from 3.7 million at the end of last year to 10.3 million at the end of this year to 29.4 million in 2015. (Source: BullFax.com, November 8, 2010)

The leading information technology analyst firm, Gartner has predicted that the global sale of electronic ebook readers will reach up to 6.6 million units by the end of 2010. This will be a stupendous 79.3% rise from the earlier sales figures of 2009, which saw a sale of 3.6 million units worldwide. (Source: Buzzle.com, December 13, 2010, Gray Pilgrim)

Announcing The Free-eBooks.net APPLE APP!

Last month, Paradise Publishers unveiled our Apple App.  “Apple App” software can be downloaded to the Apple iPhone, iPod touch or iPad.  Our Free-eBooks Apple App allows users to download directly to their device and read our Free eBooks on the go.

Over 16,000 people have installed our App already and we are the #1 result in Apple’s iTunes Store for the search term ‘Free eBooks’. We aim to create similar Apps for Android phones as well as Blackberrys to benefit and profit from millions of global mobile users.

Approximately 304 million smartphones were sold worldwide in 2010 making the mobile eBook market very appealing. Paradise Publishers is obviously targeting this additional massive market segment and customer base.

Worldwide mobile device sales to end users totaled 1.6 billion units in 2010, a 31.8 percent increase from 2009, according to a new report from research company Gartner. The report also found that smartphone sales to end users were up 72.1 percent from 2009 and accounted for 19 percent of total mobile communications device sales in 2010. (Source: eBook Newser, February 9, 2011, Dianna Dilworth)

Free-eBooks.net In The News!

As mentioned above, the media is regularly reporting on, and even arguably enamored with, the rise of both ebooks and ebook readers as they’re embraced by the marketplace.

Free-eBooks.net was proud to be recognized by TIME Magazine, as one of the online publishers delivering “the best free ebooks.” You can see the article in their online publication, under the Techland section, at:

http://techland.time.com/2010/11/08/where-to-find-the-best-free-e-books/

Another media giant online, the Huffington Post, also gave Free-eBooks.net welcomed free PR and further recognition, when presenting sites that “stand out for their accessibility and streamlined design.” You can see the entire Huffington Post article here:

http://www.huffingtonpost.com/2010/12/10/ebooks-for-free_n_792709.html

FOBOKO.COM Update

Our development of Foboko.com is progressing very well. Much of the site has already been designed and a number of the pages are now being coded. Here is a sneak peak for you:

Homepage: http://preview.foboko.com/

Library: http://preview.foboko.com/library

eBook Profile: http://preview.foboko.com/ebook/1/The-Count-of-Monte-Cristo

(NOTE:  Please be advised that these pages are under development. We invite you to see these prototype pages but want you to be aware that not all links or functionality are fully operational.)

Introducing CURING CAPITAL

As Foboko.com is a large undertaking and ground-breaking technology, we are still seeking additional funds to speed up its development. Funds are also needed to then rapidly and massively market Foboko, with the objective of staking our claim to be the leader in the innovative ‘Social Publishing’ space.

To aid us in reaching this goal, we’d like to introduce, Michael Dion of Curing Capital (http://www.curingcapital.com/) who shares our excitement. Michael is currently introducing us to his network of associates and potential prospects looking for quality investments, like Foboko.com, of course! Additionally, Spartan Securities (http://www.spartansecurities.com/) has volunteered to sponsor our listing (file the 15c211) for the OTCBB.