Greetings from all of us at Paciolan.

By now, most of you will have heard last week’s news that Ticketmaster announced its intention to acquire Paciolan. The close is expected to occur in 2007. We want to thank all of your for your positive response and support as we enter this new chapter in our company’s life. We have called every customer site at this point and would be happy to speak with you if you would like to discuss our announcement further. Although the news may at first be surprising, we are confident that the pending alliance holds countless opportunities for your venue both now and going forward.

Our primary objective is to continue to strive towards complete customer satisfaction. As Paciolan will exist as a Ticketmaster subsidiary after closing, the same management staff will continue at the helm post-closing, executing on this key objective by delivering the products and services you demand. Post-closing, we will also have the ability to offer you additional capabilities from the Ticketmaster family such as Primary Auctions, and marketing tools such as Ticket Alerts, which could send your message to millions of potential customers.

Additionally, all of your existing contacts for professional services, support, sales, development, and alliances will remain the same. The Paciolan staff who assisted you prior to this announcement will continue to serve you through the completion of the acquisition and into the future.

We welcome your questions and continue to engage with you to address questions you may have. There are many channels for you to ask questions and provide us feedback. We recently attended Summer INTIX in San Diego and plan to attend IAAM in Salt Lake City on July 20-24. Feel free to join us at these events or contact us directly.

As you can see from the breadth and depth of this newsletter, we continue to not only build product to support your needs, but to continually engage the Paciolan community. On behalf of the entire Paciolan Community, thank you for your continued support.

Sincerely,
Dave and Jane

Paciolan's Football Season Renewals Program Drives Results
by James Kim, Paciolan

Seventy-five of Paciolan’s college athletics clients participated in a closely managed effort to successfully sell season ticket renewals for the 2007 football season. In aggregate, our clients realized an online adoption rate of 49%. The program began in late January on the heels of the Bowl Championship Series and is now winding down.

To realize optimal results from their football season renewal program, colleges relied on the power of Paciolan’s email marketing system, PACMail, which is integrated with the core ticketing system. Graphically rich emails communicated the start of the 2007 football season renewal program to season ticket holders requesting them to renew. Shortly thereafter a second email was sent reminding season ticket holders to renew as well as a final reminder hours before the season renewal deadline approached. Prior to using PACMail, most clients relied largely on standalone, text-based bulk-mail to promote season renewals which generated significantly lower response and online renewal rates.

“Jayhawks Football didn’t qualify for the BCS and key players were leaving the program making the 2007 football season renewals program challenging”, stated Charlette Blubaugh, Assistant Athletics Director of Ticket Operations for Kansas. “To drive incremental ticket sales we opted to offer priority points to incent season ticket holders to renew. These point-based promotions were designed to offer better seating for football as well as high-demand Kansas basketball. These promotions served as a terrific way to generate a significant number of incremental football season ticket renewals.”

“We benefited from a successful combination of the right incentive and timely communication,” said Kyle Kravchuk, Assistant Director of Athletics/Ticket Operations at the University of Connecticut. “Email marketing streamlined our renewal process for our first-time online users. We offered our fans a discount on their order fees along with a chance to win premium seats and a VIP parking pass for the game of their choice. This promotion led to a huge success with 66% of season ticket holders renewing online in this our inaugural year offering online renewals.”

"As the Internet continues to reach more and more consumers, we continue to realize greater results when helping our college clients meet their renewal goals,” said Dave Butler, CEO of Paciolan. “Paciolan’s fully integrated email marketing system in conjunction with well designed promotional offers enables our clients to drive online season renewals and build loyalty amongst their most important constituents – season ticket holders and donors.”

Award Winning Marketing Ideas
by Craig Ricks, Paciolan

Paciolan would like to congratulate the NACMA award winners recognized in June in Orlando. The NACMA Awards program honors outstanding achievement in marketing and promotions. Over 28 universities within the Paciolan family were honored for producing exceptional marketing campaigns. Some Paciolan community standouts include Old Dominion University who won six awards, Brigham Young University and Western Kentucky University who took home five awards, the University of Illinois and University of Maryland who received four awards, the University of Notre Dame, University of Wisconsin and the University of Michigan who each won three awards.

Below are highlights of a few award winning campaigns that the University of Wisconsin, the University of Maryland, and Brigham Young University leveraged to sell tickets, fill seats, and promote events.

The University of Wisconsin Hockey Season Ticket Campaign
The University of Wisconsin won a gold award for its innovative 2006-07 men’s hockey season ticket campaign. "We were coming off a national championship season and even played in Milwaukee during the Frozen Four. We felt that this was the right time to capitalize on the team's success and make a significant jump in season ticket sales," said Kevin Kluender, Assistant Director of Marketing, University of Wisconsin.

The Wisconsin Athletics office used a comprehensive direct marketing mix including, direct mail promotions, a ticket packages brochure, and email marketing campaigns to drive renewals and sell season ticket packages to the public and students. Additionally, Wisconsin leveraged billboard advertising and an ongoing "Are you Ready" campaign to raise awareness and get fans excited about hockey to kick off the season.

"Over the past few years we implemented creative ticket packages and promotions to recruit new fans and build our hockey database. This year we leveraged our growing database to up-sell fans and boost new ticket sales," stated, Andy Zywicki, Assistant Ticket Director, University of Wisconsin.

The campaign was a huge success and contributed to selling a school record 18,652 public season tickets. Wisconsin also sold a record 2,769 student season tickets, selling out the entire student section with season tickets for the first time in men's hockey. Additionally, Wisconsin finished with a school and national record per game attendance average of 14,430.

Maryland's Season Ticket Sales Campaign for Women's Basketball
When the Maryland Women's basketball team made it to the final four of the tournament, and eventually won the national championship, the plans to market for next year's season tickets were already underway. Maryland Athletics launched a 30-day marketing campaign designed with three specific goals:

• Encourage early renewals among existing season ticket holders
• Sell new season tickets for the 2006-07 season
• Increase visibility of Maryland Terrapins and Women's Basketball during March Madness

Maryland developed two separate and distinct campaigns - one for renewals and one for new season ticket sales. They offered multiple incentives for season ticket holders to renew including maintaining prices, providing bonus tickets to a single game and offering season ticket stock autographed by the entire team. For new season ticket sales, they offered discounted prices for a limited time basis.

Terrapin marketing used emails, voice mail messages from head coach Brenda Frese, print, radio and television ads to encourage season ticket renewals and new season ticket sales following the Terps' national championship season in 2006. The campaign resulted in 3,201 new season tickets sold, far eclipsing their goal.

"We wanted to capitalize on the success of our women's basketball team and ask fans to 'Be part of the championship'. By having an aggressive marketing campaign in place, we were able to act quickly and exceed our goal of new ticket sales," Brett Tillett, Director of Sports Marketing, University of Maryland.

Brigham Young University - Single-Day Attendance Promotion: Olympic Sports
BYU Athletic Marketing teamed with New Student Orientation to provide a night for all incoming new students to attend the first BYU women's volleyball game against #4 Stanford. The game was scheduled before the semester began, which historically resulted in low attendance rates. By incorporating the game into the New Student Orientation activities schedule, BYU produced a record crowd of over 4,000 fans of which 3,000 were new students. The ticket office then parlayed the positive experience to sell "All Sports Pass" students tickets. By exposing new students to a sell out crowd and an electric atmosphere they contributed to purchasing over 16,000 All Sports Passes for the year.

"We made one relationship with the New Student Orientation and created a sell out crowd that was the largest in BYU women's volleyball history. The students' first impression of BYU athletics was overwhelmingly positive and created a significant residual effect that spilled over into the next home soccer game, where we set our second highest attendance record in BYU Women's Sports History," states Bill Hoops, Marketing Coordinator, Brigham Young University.

Robot Tech Best Practices - Ensuring a Great Online Experience
by Meaghan Metke, Paciolan

Paciolan is committed to providing clients with the best service and support during onsales to ensure your customers have a rewarding experience online. Over the course of the last few months, the ticketing industry has had an increase in the amount of automated or robotic traffic negatively impacting many onsales. By following industry best practices you can protect yourself against robot traffic to maintain a quality experience.

What Is Robotic Traffic?
Automated or robotic traffic, in the form of scripts, are launched prior to an onsale. These scripts generate large numbers of connections to the web servers causing 'Please Wait' pages to be served to legitimate buyers. The Technical Operations team monitors internet traffic during an on sale and identifies IP addresses that generate more connections than we define as 'normal'. Once these IP addresses are identified, they are blocked for 20 minutes. We do not permanently block any IP addresses. The Technical Operations team has been able to automate many steps in this process, but they continue to manually monitor for new types of scripts every day.

More advanced scripts can actually secure seats, thereby competing with your patrons for tickets. Un-purchased inventory held by these scripts will not become available until tickets are released from the cart or the shopping cart naturally times out. This leads to a scenario where people who come to the site 10 minutes into the on sale have a better chance for securing premium seats than those buyers who are on the site at the beginning of the on sale. The CAPTCHA word technology, implemented several months ago, has proven to be an effective deterrent to these scripts. Unfortunately, there are several websites that will, for a fee, provide work-arounds to any word verification software. Our Technical Operations team continues to identify these loopholes and close them as quickly as possible.

Best Practices to Reduce the Effects of Robitic Traffic
Robotic scripts are an industry wide problem and blocking robotic traffic is an on going cat and mouse game. To that end, there are some onsale best practices that we would like you to consider putting into place. These steps will not stop all robots from getting to your inventory, but they will greatly hamper their efforts.

• Change your cart timer to 6 minutes. This is the industry standard, and except for some extreme situations, it has proven to be more than enough time for folks to register and pay, especially if the cart limit has been reduced to prevent shopping.
• Work with your ISC to set a limit to the number of items that can be added to the shopping cart. During high profile onsales, we recommend that the cart limit be dropped to 1 item, maybe 2 items if you're also selling parking or other merchandise. As soon as traffic subsides, we can increase the limit very quickly. No reload is required to put this change into effect.
• We understand that the max ticket limit is often defined by the promoter, but we recommend a max ticket limit of no more than 8 when possible.
• Do not turn on the feature to add time to the shopping cart each time an event is added. We have seen brokers abuse this functionality and run up hours worth of cart time. This allows them to post tickets from their cart on a re-sale site and hold them, without payment, until they are sold.
• If you deep link directly to the event page from your organization's web site, don't activate the link until just before the event goes on sale. This will prevent scripts from being set up in advance.

If you have any questions regarding these best practices, please contact your ISC.

Theatre Under The Stars Reaches Out To New Audiences Through MySpace
by Shaw Taylor, Paciolan

Many performing arts organizations strive to tap into younger demographics to develop new audiences and build life-long relationships. When targeting younger audiences, marketers are finding that traditional media vehicles such as radio, television and print continue to wane in favor of the Internet. To take advantage of new media tools and to attract younger patrons, the Theatre Under The Stars (TUTS) launched a page on the MySpace.com social networking site.

TUTS worked with Paciolan and MyCityRocks Houston to establish a MySpace presence at http://www.myspace.com/TheatreUnderTheStars. On this customized MySpace page, patrons sample show tunes of upcoming shows, view pictures and videos of past performances, post comments and connect with other TUTS patrons online. This community allows TUTS to expand ticketing opportunities, raise awareness and promote upcoming shows through social networking.

"Theatre Under The Stars is proud to be progressive in the use of evolving technology and social networking opportunities to help spread our passion for musical theatre," explained David Greiss, Director, Sales and Marketing at TUTS. "Our outreach efforts through MySpace and MyCityRocks allow us to use music, video, and rich imagery to show young-thinking audiences how exciting our productions are, and to bring them new opportunities to enjoy theatre in Houston. With our launch of "Monty Python's Spamalot", and upcoming productions like "Beehive, The 60's Musical" and "Dreamgirls", TUTS' productions appeal to audiences in virtually all demographics and age groups. These communication efforts provide new ways for us to richly interact with audiences and expand their awareness of our productions and educational opportunities."

TUTS also leverages their MySpace page to promote their TUTS' URBAN PROFESSIONALS community (UP@TUTS). Members of UP@TUTS enjoy receptions, discounts on tickets and Encore merchandise, backstage tours, invitations to exclusive TUTS events, as well as other social and educational opportunities. Photos of some of these events are featured on the TUTS MySpace page to further promote membership and raise awareness of UP@TUTS.

TUTS plans to continue to market through MySpace to broaden their audience and promote upcoming shows. With the moving target of younger patrons' media consumption, and the emergence of new "web 2.0" technologies, social networking is a trend that is here to stay.

Secondary Ticketing - Trending Towards Venue Enablement
by Ross Krewenka, Paciolan

The stakes are getting higher for secondary ticketing as more venues are vying for their piece of the pie. Technology has moved this industry online, away from the street corner, changing the perception of ticket reselling to a widely accepted practice. With heightened ticket demand, growing consumer adoption and the ubiquitous ticket broker, the secondary ticketing segment has soared to an estimated $3 billion to $4 billion annually*.

There are currently two primary business models for secondary ticketing:

• The team/venue enabled model – where teams operate their own ticket resale programs
• The third party reseller model – where companies such as Stubhub, Razorgator, and TicketsNow exclusively target the team's fans in return for sponsorship payment

Secondary ticketing is not the lawless 'Wild West'. Currently there are over 10 states* with laws and restrictions in place for the resale of tickets from seller to buyer within the same state. These laws seemingly favor the third party model as sellers are enabled to make transactions online anonymously. Recently, however, the tide has turned with many states modifying their ticket 'scalping' laws to reduce or remove restrictions. New York, Illinois, Florida, Minnesota, Missouri, South Carolina and Louisiana have all recently modified these laws to favor a 'free market' economy. Other states such as Massachusetts, Connecticut and the District of Columbia are also considering amending their laws. Relaxing and lifting these state restrictions affords venues the opportunity to seize secondary ticketing revenue and capitalize on this legitimate business opportunity.

Some progressive teams are even policing their season ticket holders and mandating exclusive use of the team-sanctioned ticket resale service. The Denver Broncos, the New England Patriots, and the New York Yankees are all enforcing this rule. By monitoring third party sites during the season, these teams threaten the 'death penalty', i.e. losing season tickets, if fans are caught violating the policy. In fact, both the New York Yankees and the Patriots have revoked the seats of several season tickets holders who were caught selling tickets on third party sites last year.

Other teams enforce anti-scalping policies by monitoring ticket resale and broker sites during high demand playoff games. This past season the Ottawa Senators retracted more than 150 tickets for the Stanley Cup Final sold to suspected ticket brokers. The move was taken to protect true Senators fans by ensuring that the original fans who purchased tickets attended the games.

Teams are recognizing and taking advantage of this trend towards venue enablement. In the last 24 months, a groundswell of momentum has occurred. Over 290* venues and teams now offer secondary ticketing services through their primary ticket service provider. Venues are realizing the benefits of controlling pricing, managing business rules, maintaining customer relationships and capitalizing on cross selling opportunities. What's more, by tracking fans’ attendance rates coupled with ticket resale, teams can identify 'at risk' season ticket holders to create loyalty and customized marketing programs. Capturing new ticket buyers' information also becomes a significant source for leads and prospects to up-sell packages or season tickets.

Fans also benefit from the venue-enabled secondary ticketing model. Venues utilize their integrated bar-coded data to manage resold or transferred tickets for buyers and sellers. When a ticket is sold, the barcode on the original ticket is instantly invalidated, and the buyer receives an activated, print-at-home ticket via email. This process eliminates the need to mail hard stock tickets or meet face-to-face to exchange tickets, and removes the threat of buying counterfeit tickets.

Whether you are a seasoned veteran of secondary ticketing, or just beginning to create your secondary ticketing plans, I invite you to contact me, to discuss your strategy and hear best practices of your peers. We are committed to helping you achieve success and reach your goals in the secondary arena.

*Sports Business Journal, "Secondary Market Watches Moves on Scalping" June 18, 2007
*New York Times, " Fighting the Web, Sports Teams Seek to Control Ticket Resales" June 14, 2007
*Cumulative count of Ticketmaster, Paciolan, Tickets.com, and Flash Seats clients

WBST 6.90 Update
by Mike Becker, Paciolan

The Paciolan Development team is hard at work on this year's release of version 6.90 of the reserved seat ticketing applications. For WBST, this is a particularly important release that will provide greater usability for outlets, phone rooms, and even some "express sales" scenarios at the box office.

WBST 6.90 will incorporate all the features of Enterprise Ticketing Terminal (ETT), which will no longer exist as a stand-alone product. In addition to merging these two applications, we have developed a host of new features that are currently being tested, as indicated in the box below.

If you are already using WBST or ETT, you will see more information about the upcoming release over the next several months. We will be providing documentation and Web training opportunities so that you can take advantage of all these cool new features.

Just as important, we'll be providing materials for your remote outlets and phone room operators to become familiar with the new look and feel of WBST. As we convert our hosted WBST environment to version 6.90, we want to ensure that everyone is adequately prepared for these powerful changes.

WBST 6.90 Features*

General Usability

• New and improved user interface
• New sales processes configurable to optimize both 3rd party sales and streamlined venue ticket sales

Ticket Sales

• Ability to sell: Singles, Combos, Miscellaneous Items, Gift Certificates, Donation Items, Access Passes
• Advanced sale functions for season ticket sales: prorate, not assign seats, deferred payment
• Customize order data collected on cart screen
• Configurable patron screen in a sale: 3rd party specific, quick entry, full patron data

Payment, Delivery, and Confirmation

• Accept multiple payments on one order
• Deliver tickets to: BOCA, Laser, Print at Home, Magstripe
• Email Order Confirmation
• POS solution: cash drawers

Post Sale Order Management

• Will Call pick up of orders from all sales channels
• Return and refund of all WBST orders
• Order Inquiry

Patron Management

• Patron Management functions separate from New Sales processes

Setup and Administration

• Streamlined product setup and maintenance
• Automated Batch Management: set expiration date or limit by # transactions
• Additional System Administration features to improve system monitoring, stability, and performance

* Note - these features are currently under development and subject to change in the final release.

Microsoft Dynamics™ CRM
by Shaw Taylor, Paciolan

Venues today are constantly looking for methods to build, maintain and better service their customers. Many progressive venues are leveraging the power of CRM (customer relationship management) to sell more tickets, strengthen relationships with season ticket holders, and fill seats during game day. CRM solutions enable venues to gain a 360 degree view of their customers, from the moment they enter the database as a lead/prospect, all the way through to the end of the sales process when they have made a ticket purchase. This information provides organizations with the information needed to offer excellent customer service and create programs to meet their ticket revenue goals.

Microsoft Dynamics™ CRM Overview
Microsoft CRM gives the ticketing sales, marketing and customer service departments of your organization the ability to work in a more cohesive and efficient manner. It allows you to integrate ticketing information from the Paciolan database into a customer focused and user friendly CRM solution. The goal of Microsoft CRM is to more effectively manage leads, opportunities, forecast sales activity, track customer communications, analyze marketing campaign performance, and manage customer service support issues from initial contact through successful resolution.

What are the Benefits of Microsoft CRM?
Microsoft CRM enables organizations to gain access to detailed customer information, including all past communications and ticket purchase history - enabling venues to service them effectively and build lasting relationships. Implementing CRM allows organizations to benefit from:

• Increased sales success
• More effective marketing capabilities
• Superior customer serviceInstant access to Paciolan ticketing data in a CRM solution
• Greater customer satisfaction through a 360° view of patrons' account history

How Does Microsoft CRM Integrate with Paciolan?
An automated nightly data feed from the Paciolan ticketing database to Microsoft CRM includes patron, season, event and purchase data ensuring that all information is up-to-date on a daily basis. Initial data migration and filtering is also performed so that all existing ticketing data in the Paciolan system is imported without duplication to the new Microsoft CRM system.

How Can You Get Microsoft CRM?
Spinnaker is Paciolan's exclusive reseller of Microsoft CRM and the Paciolan integration. For over 10 years, Spinnaker Network Solutions, Inc. has been in the business of providing organizations with the tools required to remain competitive in obtaining and retaining customers. Paciolan recently partnered with Spinnaker to provide it's customers with an integrated Customer Relationship Management (CRM) solution. For more information regarding Microsoft CRM, please contact Joe Alexander with Spinnaker directly at jalexander@spinnaker.net.

Learning Center Series
by Ted Giess, Paciolan

The Learning Center Series enables you to gain access to Paciolan experts to share knowledge that enable you to better manage your business and even some of your most challenging issues. These hour-long training sessions will give you the knowledge you need to:

• Increase your understanding of Paciolan functionality
• Implement new features
• Gain tricks, tips and tools
• Improve patron management and relationships
• Learn and apply industry best practices

Each month there will be an assortment of topics to propel you to new heights of understanding through training, round table discussions, and best practices. To see a full listing of future Learning Center Series sessions visit http://community.paciolan.com. To participate in these sessions, click on the below topics that you would like to attend and then register. Further instructions to attend will be emailed to you.

We look forward to seeing you online!