LiveWorld Announces 35% Revenue Growth, 2nd Profitable Quarter, and 4th Consecutive Quarter of Positive Cash Flows

Leading provider of Internet community solutions for business again demonstrates solid growth and business model

Los Gatos, Calif., October 21, 2003 - LiveWorld, Inc. (Pinksheets: LVWD.PK) today announced strong Q3 2003 financial results, including the company’s second profitable quarter. The company further reported that third quarter 2003 was its fourth consecutive cash positive quarter, and that revenue grew 35% over third quarter 2002.

Revenues for the third quarter of 2003 were $703,000, representing 35% growth over the third quarter 2002 revenue of $520,000. Sequentially, revenue grew 8% compared to second quarter 2003 revenue of $650,000.

Third quarter earnings, including non-cash charges, showed a profit of $38,000, or an EPS of $0.0015 per share. This compares to a third quarter 2002 loss of ($1,075,000), or ($0.0413) per share. It compares to a second quarter 2003 profit of $18,000, or an EPS of $0.0007.

"LiveWorld’s financial results reflect the strength of our business model and the ROI we deliver to our Fortune 1000 clients," said LiveWorld Chairman & CEO, Peter Friedman. "eBay, MINI USA, HBO, Campbell’s Soup and other clients are all utilizing our services to grow revenue, reduce costs and strengthen customer relationships." "As the economy improves and our business picks up, the overall outlook for the future is more positive. The business can still vary quarter to quarter. As a matter of managing the business on a conservative basis, we continue to take a cautious approach and manage costs tightly," said Mr. Friedman. The company’s cash position remains over $900,000 in cash reserves, which provides significant room to wait out the fluctuations in the economy and build business.

About LiveWorld, Inc.
LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com ) is a leading provider of online community solutions for business: loyalty marketing communities, customer support communities, and business intelligence communities based on LiveWorld’s unique community applications platform. LiveWorld solutions enable Fortune 1000 companies to reduce costs, increase revenues, and strengthen customer relationships. Clients include companies such as America Online, eBay, HBO, MINIUSA, The Campbell’s Soup Company, Intel, Fidelity Investments, A&E Television Networks, Warner Brothers, and Discovery Communications. LiveWorld is headquartered in Los Gatos, California.