LiveWorld Announces 3rd Quarter Financial Results: Company Reports Positive Net Income and Cash Flow for the Quarter

SAN JOSE, Calif., NEW YORK & LONDON — November 4, 2009 – LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading social media marketing agency, today reported $2.5 million in total revenues and net income of $7,000 for the third quarter of 2009 as compared to $2.7 million in total revenues and net loss of $602,000 for the third quarter of 2008. The Company saw lower revenues as a result of fewer new client acquisitions, which was partially offset by new projects from existing clients. The $609,000 increase in the net income was attributable to efficiencies the Company has been able to obtain in the delivery of services to clients.


"We have delivered improved quarterly results in this challenging economic environment, as we continued to focus on the efficient delivery of services to our clients." said David Houston, Chief Financial Officer of LiveWorld. "A central point of our operating plan has been to not only improve our financial results and maintain positive cash flow, but also to continue our investment in product development. As we move into 2010 we believe our product offerings meet the needs of our clients and will drive the growth and profitability of the company."


The Company generated $29,000 in cash during the third quarter of 2009 which was an improvement of $396,000 when compared to the cash burn of $367,000 for the third quarter of 2008. The Company ended the quarter with $1.5 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $1.4 million for the third quarter of 2009 as compared to the $1.2 million it had at the end of the fourth quarter of 2008.


On a non-GAAP basis the Company reported net income of $189,000 for third quarter of 2009 which was an improvement of $541,000 from the $352,000 net loss for the third quarter of 2008. LiveWorld defines non-GAAP net income or Adjusted EBITDA as net income or loss before interest income, income taxes, depreciation and amortization, and non-cash stock-based compensation expense. Adjusted EBITDA is not a term defined by GAAP and as a result LiveWorld’s measure of Adjusted EBITDA might not be comparable to similarly titled measures used by other companies.


Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.pinksheets.com.


About LiveWorld, Inc.
LiveWorld is the go-to social media marketing agency for everything global corporations need to leverage the power of social networks to build their brands and their business. LiveWorld thinks differently about how companies can use social networks for customer dialogue and relationships and is the only company that offers the combination of a full technology platform, moderation services, community management and marketing strategy, all in one place. This combination - unique in the industry - is the reason why more global brands turn to LiveWorld than any other firm for their ongoing, integrated social media marketing strategy and implementation. With 24 years of experience, an extensive applications hosting platform, and a track record of delivering over 1 million hours of moderation services, LiveWorld offers its clients a team of experienced community managers and moderators who oversee activity and user content online. LiveWorld deploys its services in more than 70 country-language combinations, and is the trusted partner of leading brands worldwide, including: A&E Television Networks, The Campbell Soup Company, eBay, HBO, HSBC, Kraft Foods, LeapFrog, Neutrogena, MINI Cooper USA, TJX, QVC and many others. For further information visit www.liveworld.com.


"Safe Harbor" Statement Under The Private Securities Litigation Reform Act:
This press release may contain forward-looking information concerning LiveWorld's plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding LiveWorld’s current or future financial performance including but not limited to lists of clients, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, and the results of its product development efforts. Actual results may differ materially from those expressed in the forward looking statements made as a result of, among other things, final accounting adjustments and results, LiveWorld’s ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorld’s ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. For a detailed discussion of these and other risk factors, please refer to LiveWorld’s Report on Form 10-K dated March 25, 2008. You can obtain a copy of the Form 10-K on either our website or the SEC Web site (www.sec.gov).


LiveWorld Contacts
PR Contacts:
Krause Taylor Associates:
Barbara Krause barbara@krause-taylor.com 1 (408) 981.2429 (cell)

IR Contact: David Houston: LiveWorld dhouston@liveworld.com 1 (408) 615.8496