LiveWorld Releases 6 Quarters of Financial Results; Shows Strong Quarterly & Annual Revenue Growth

Full Service Online Community Agency Delivers Solid Financial Performance



Sep 14, 2004, 01:00 ET from LiveWorld, Inc.

    LOS GATOS, Calif., Sept. 14 /PRNewswire-FirstCall/ -- LiveWorld, Inc.
 (Pinksheets: LVWD.PK) today released 6 quarters of financial results from Year
 End 2002 through Q2 2004.  Revenue grew 103% overall and had strong growth in
 most quarters since Q1 2003.  As of Q2 2004, LiveWorld has recorded 7 straight
 cash positive quarters and 5 straight quarters of profitability.  The
 Company's balance sheet has over $960, 000 in cash and no debt.
     "This sustained positive financial performance demonstrates the value of
 our online community relationship marketing and support solutions, the quality
 of our clients and the dedication of our team," said Peter Friedman, Chairman
 and CEO.  We have emerged from the depths of the economic downturn with a
 proven business model and are poised for growth."
     As a cost savings measure in Q4 2002, the Company adjusted its status to
 remain a public company but without the requirements to file SEC reports.
 This saved the company over $200,000/year.  Since then several Internet
 financial and stock sites have had out of date information on LiveWorld with
 their data based on the company's SEC filing for Q3 2002.  The information
 released by LiveWorld today will enable interested parties to have a better
 understanding of the Company's significant revenue growth, profitable
 operations and strong balance sheet.
     LiveWorld stated that its strategy is to invest in revenue growth while
 maintaining an approximately breakeven bottom line.  The Company currently
 expects its 2nd half 2004 revenue to show significant growth over 1st half
 2004.  Consistent with past year patterns and due to the seasonal "up summer"
 nature of the business of some clients, revenue for Q3 2004 may be higher than
 Q4 2004, which is expected to be followed by growth in Q1 2005.
 
 
                         LiveWorld Financial Statements
  (These statements have not been audited or reviewed by an outside accounting
              firm and are subject to change upon such a review.)
 
     Income Statement: 2002-2004
                                   2002        Q1 '03      Q2 '03      Q3 '03
 
       Revenue                  $2,120,663    $600,684    $649,613    $702,825
       Expense *                 6,303,314     767,118     681,435     683,767
     Net Ordinary Income        (4,182,652)   (166,434)    (31,821)     19,058
 
       Other Income                 82,877       2,418       5,959      11,034
       Other Expense/(Expense
        Reduction) **             (354,973)      1,000     (43,775)     (7,946)
       Net Other Income            437,850       1,418      49,734      18,980
     Net Income                ($3,744,802)  ($165,016)    $17,912     $38,037
 
     Outstanding Shares         25,358,874  25,358,874  25,358,874  25,358,874
     Earnings Per Share (EPS)     ($0.1477)   ($0.0065)    $0.0007     $0.0015
 
                                   Q4 '03       2003       Q1 '04      Q2 '04
 
       Revenue                    $624,506  $2,577,628    $968,216  $1,217,323
       Expense *                   597,448   2,729,769     928,553   1,197,293
     Net Ordinary Income            27,058    (152,140)     39,663      20,030
 
       Other Income                 12,720      32,130       2,963       2,776
       Other Expense/(Expense
        Reduction) **              (93,164)   (143,885)    (54,667)     (1,178)
      Net Other Income             105,884     176,016      57,630       3,954
     Net Income                   $132,942     $23,875     $97,293     $23,984
 
     Outstanding Shares         25,358,874  25,358,874  26,584,707  26,584,707
     Earnings Per Share  (EPS)     $0.0052     $0.0009     $0.0037     $0.0009
 
 
     Balance Sheet: Last 3 quarters
                                  Dec 31, 03  Mar 31, 04  Jun 30, 04
     Assets
     Cash                          946,506       949,441       960,833
     Accounts Receivable, Net      269,878       408,018       410,720
     Other Current Assets           36,162       132,687       136,241
     Total Current Assets        1,252,546    $1,490,147    $1,507,795
     Long Term Assets              258,479       294,250       282,971
     Total Assets               $1,511,025    $1,784,397    $1,790,766
 
     Liabilities & Equity
     Accounts Payable               32,114       115,899        29,504
     Deferred Revenue              220,252       181,973       117,989
     Other Current Liabilities     156,703       268,951       401,715
     Total Current Liabilities     409,069       566,823       549,209
     Total Long Term Liabilities        --            --            --
     Total Liabilities            $409,069      $566,823      $549,209
 
     Common Stock                   25,481        25,481        25,481
     Treasury Stock - Par              (55)          (55)          (55)
     Additional Paid-in
      Capital                  135,149,218   135,167,543   135,167,543
     Treasury Stock Excess of
      Par                          (22,159)      (22,159)      (22,159)
     Retained Earnings        (134,050,529) (133,953,237) (133,929,253)
     Total Equity               $1,101,956    $1,217,573    $1,241,557
 
     Total Liabilities & Equity $1,511,025    $1,784,397    $1,790,766
 
     Notes
 
     * Expenses
     Included in "Expense" are significant one time legal expenses the Company
 is incurring in 2004 associated with its efforts to collect money past due or
 otherwise due from past clients.
 
     ** Other Income and Other Expense/(Expense Reduction)
 
     2002
     Other Income is mostly interest income.
     Other Expense Reduction is mostly associated with restructuring and write
 off adjustments.
 
     2003
     Other Expense Reduction is mostly associated with accounting reversals of
 accruals from prior years.
 
     Q1 2004
     Other Expense Reduction is mostly associated with the net favorable impact
 of settlement of two one time legal matters related to payments and past due
 amounts from past clients for business transactions in Year 2000.
 
 
     About LiveWorld, Inc.
     LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com) is the leading full
 service online community agency that creates, operates and manages loyalty
 marketing, customer support, and business intelligence communities based on
 LiveWorld's unique community applications platform and strategic community
 model.  LiveWorld solutions enable Fortune 1000 companies to strengthen
 customer relationships, increase revenues, and reduce costs.  Clients include
 companies such as America Online, eBay, HBO, MiniUSA, The Campbell's Soup
 Company, Slimfast, Fidelity Investments, SUN Microsystems, A&E Television
 Networks, Discovery Communications, The Walt Disney Company and Warner
 Brothers.  LiveWorld is headquartered in Los Gatos, California.
 
     "Safe Harbor" Statement Under The Private Securities Litigation Reform
 Act:
     This press release contains forward-looking information concerning the
 Company's future expectations, forecasts, and prospects.  These statements
 include those regarding the Company's current or future financial performance.
 Actual results may differ materially from those expressed in the forward
 looking statements made by the Company as a result of, among other things, the
 Company's ability to successfully deliver upon its contractual commitments,
 clients continuing their ongoing relationships with the Company, ability to
 acquire new customers, and other risk factors described in the Company's
 latest 10Q and 10K filed with the SEC.  Financial information quoted in this
 release represents results that have not been audited or reviewed by an
 outside accounting firm.
 
 

SOURCE LiveWorld, Inc.
    LOS GATOS, Calif., Sept. 14 /PRNewswire-FirstCall/ -- LiveWorld, Inc.
 (Pinksheets: LVWD.PK) today released 6 quarters of financial results from Year
 End 2002 through Q2 2004.  Revenue grew 103% overall and had strong growth in
 most quarters since Q1 2003.  As of Q2 2004, LiveWorld has recorded 7 straight
 cash positive quarters and 5 straight quarters of profitability.  The
 Company's balance sheet has over $960, 000 in cash and no debt.
     "This sustained positive financial performance demonstrates the value of
 our online community relationship marketing and support solutions, the quality
 of our clients and the dedication of our team," said Peter Friedman, Chairman
 and CEO.  We have emerged from the depths of the economic downturn with a
 proven business model and are poised for growth."
     As a cost savings measure in Q4 2002, the Company adjusted its status to
 remain a public company but without the requirements to file SEC reports.
 This saved the company over $200,000/year.  Since then several Internet
 financial and stock sites have had out of date information on LiveWorld with
 their data based on the company's SEC filing for Q3 2002.  The information
 released by LiveWorld today will enable interested parties to have a better
 understanding of the Company's significant revenue growth, profitable
 operations and strong balance sheet.
     LiveWorld stated that its strategy is to invest in revenue growth while
 maintaining an approximately breakeven bottom line.  The Company currently
 expects its 2nd half 2004 revenue to show significant growth over 1st half
 2004.  Consistent with past year patterns and due to the seasonal "up summer"
 nature of the business of some clients, revenue for Q3 2004 may be higher than
 Q4 2004, which is expected to be followed by growth in Q1 2005.
 
 
                         LiveWorld Financial Statements
  (These statements have not been audited or reviewed by an outside accounting
              firm and are subject to change upon such a review.)
 
     Income Statement: 2002-2004
                                   2002        Q1 '03      Q2 '03      Q3 '03
 
       Revenue                  $2,120,663    $600,684    $649,613    $702,825
       Expense *                 6,303,314     767,118     681,435     683,767
     Net Ordinary Income        (4,182,652)   (166,434)    (31,821)     19,058
 
       Other Income                 82,877       2,418       5,959      11,034
       Other Expense/(Expense
        Reduction) **             (354,973)      1,000     (43,775)     (7,946)
       Net Other Income            437,850       1,418      49,734      18,980
     Net Income                ($3,744,802)  ($165,016)    $17,912     $38,037
 
     Outstanding Shares         25,358,874  25,358,874  25,358,874  25,358,874
     Earnings Per Share (EPS)     ($0.1477)   ($0.0065)    $0.0007     $0.0015
 
                                   Q4 '03       2003       Q1 '04      Q2 '04
 
       Revenue                    $624,506  $2,577,628    $968,216  $1,217,323
       Expense *                   597,448   2,729,769     928,553   1,197,293
     Net Ordinary Income            27,058    (152,140)     39,663      20,030
 
       Other Income                 12,720      32,130       2,963       2,776
       Other Expense/(Expense
        Reduction) **              (93,164)   (143,885)    (54,667)     (1,178)
      Net Other Income             105,884     176,016      57,630       3,954
     Net Income                   $132,942     $23,875     $97,293     $23,984
 
     Outstanding Shares         25,358,874  25,358,874  26,584,707  26,584,707
     Earnings Per Share  (EPS)     $0.0052     $0.0009     $0.0037     $0.0009
 
 
     Balance Sheet: Last 3 quarters
                                  Dec 31, 03  Mar 31, 04  Jun 30, 04
     Assets
     Cash                          946,506       949,441       960,833
     Accounts Receivable, Net      269,878       408,018       410,720
     Other Current Assets           36,162       132,687       136,241
     Total Current Assets        1,252,546    $1,490,147    $1,507,795
     Long Term Assets              258,479       294,250       282,971
     Total Assets               $1,511,025    $1,784,397    $1,790,766
 
     Liabilities & Equity
     Accounts Payable               32,114       115,899        29,504
     Deferred Revenue              220,252       181,973       117,989
     Other Current Liabilities     156,703       268,951       401,715
     Total Current Liabilities     409,069       566,823       549,209
     Total Long Term Liabilities        --            --            --
     Total Liabilities            $409,069      $566,823      $549,209
 
     Common Stock                   25,481        25,481        25,481
     Treasury Stock - Par              (55)          (55)          (55)
     Additional Paid-in
      Capital                  135,149,218   135,167,543   135,167,543
     Treasury Stock Excess of
      Par                          (22,159)      (22,159)      (22,159)
     Retained Earnings        (134,050,529) (133,953,237) (133,929,253)
     Total Equity               $1,101,956    $1,217,573    $1,241,557
 
     Total Liabilities & Equity $1,511,025    $1,784,397    $1,790,766
 
     Notes
 
     * Expenses
     Included in "Expense" are significant one time legal expenses the Company
 is incurring in 2004 associated with its efforts to collect money past due or
 otherwise due from past clients.
 
     ** Other Income and Other Expense/(Expense Reduction)
 
     2002
     Other Income is mostly interest income.
     Other Expense Reduction is mostly associated with restructuring and write
 off adjustments.
 
     2003
     Other Expense Reduction is mostly associated with accounting reversals of
 accruals from prior years.
 
     Q1 2004
     Other Expense Reduction is mostly associated with the net favorable impact
 of settlement of two one time legal matters related to payments and past due
 amounts from past clients for business transactions in Year 2000.
 
 
     About LiveWorld, Inc.
     LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com) is the leading full
 service online community agency that creates, operates and manages loyalty
 marketing, customer support, and business intelligence communities based on
 LiveWorld's unique community applications platform and strategic community
 model.  LiveWorld solutions enable Fortune 1000 companies to strengthen
 customer relationships, increase revenues, and reduce costs.  Clients include
 companies such as America Online, eBay, HBO, MiniUSA, The Campbell's Soup
 Company, Slimfast, Fidelity Investments, SUN Microsystems, A&E Television
 Networks, Discovery Communications, The Walt Disney Company and Warner
 Brothers.  LiveWorld is headquartered in Los Gatos, California.
 
     "Safe Harbor" Statement Under The Private Securities Litigation Reform
 Act:
     This press release contains forward-looking information concerning the
 Company's future expectations, forecasts, and prospects.  These statements
 include those regarding the Company's current or future financial performance.
 Actual results may differ materially from those expressed in the forward
 looking statements made by the Company as a result of, among other things, the
 Company's ability to successfully deliver upon its contractual commitments,
 clients continuing their ongoing relationships with the Company, ability to
 acquire new customers, and other risk factors described in the Company's
 latest 10Q and 10K filed with the SEC.  Financial information quoted in this
 release represents results that have not been audited or reviewed by an
 outside accounting firm.
 
 SOURCE  LiveWorld, Inc.