Ellora's Cave plans on a new erotica line of books. While the name has not been decided/announced, they hope to launch in late 2006 -- and are accepting submissions now.
This will be a line of erotica, not erotic romance. (Basically the same sexuality level as E-rated EC stories, the same taboos.) Stories do not have to be a "romantic" nor need commitment. But, stories do not need to avoide romance either. The main focus is on the sexual relationship instead of the romantic one.
Gay or Lesbian stories welcome. Stories can be 10K to 100K.
All submissions must be sent to Submissions@ellorascave.com, and should state "EC erotica submission" in the Subject line. Attach a detailed full-story synopsis, the first three chapters, and the last chapter. For stories of less than 20K words, attach the synopsis and full manuscript. The file must be in .doc or .rtf format. We do not take paper submissions. No query letter is needed. Response time is one to eight months.
Guideline details are here.
And they've made some news recently, as in this article: Hearts, flowers and racy passages