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LiveWorld Reports Audited Financials for 2006: Record Revenue in the Fourth Quarter and Fourth Consecutive Year of Positive Cash Flows

San Jose, Calif., March 21, 2007 – LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading online social networking and community services marketing agency, today reported its fiscal year ended December 31, 2006 financial statement, including audited results for years 2004, 2005 and 2006, following resumption of auditing. The company also said it has filed a Form 10-SB with the Securities and Exchange Commission with the intent to resume periodic reporting and to move from the Pink Sheets to the NASD Over the Counter Bulletin Board (OTC BB; www.otcbb.com).

"2006 marked a turning point for LiveWorld highlighted by increased adoption of our new flagship LiveWorld Community Center, strength in our market-leading moderation services, and increased new client revenue," said Peter Friedman, LiveWorld's Chairman and Chief Executive Officer. "We remained cash-flow positive even as we continued to investment in our growth, leveraging our formidable LiveWorld-WPP joint venture, developing a range of new products and accelerating our marketing efforts. We look forward to continued growth and adoption of our social networking and community solutions for brand marketers worldwide in 2007 and beyond."

"We're pleased to announce our audited financial results for the past three fiscal years following the resumption of auditing by our auditor, Stonefield-Josephson LLP," said David Houston, Chief Financial Officer. "We're especially proud that the full audit resulted in only minor adjustments, reflecting the strong financial management the company has maintained during the last four years."

Revenues: Total revenues for fiscal year 2006 were approximately $9.8 million representing 2% growth over fiscal year 2005 revenues of $9.6 million. Fiscal fourth quarter 2006 revenues were approximately $2.9 million, a record quarter for the Company's private-labeled social network services business, representing 16% year-over-year growth compared to fourth quarter 2005 revenues of $2.5 million, and 25% growth compared to third quarter 2006 revenues of $2.3 million. Total 2006 revenues were essentially flat compared to 2005, reflecting the anticipated April 2006 end of a multi-million dollar contract with its largest client, AOL US. However, the revenue decline associated with that contract's end was fully offset by revenue growth from other AOL US projects, other existing clients and new clients. Revenues from clients excluding AOL US grew to $6.3 million in fiscal year 2006, up from approximately $4.7 million in fiscal year 2005. The Company expects to report continued annual growth in 2007 over 2006 with typical seasonality during the first quarter.

Net Income / (Loss) Including the Impact of Stock Option and Warrant Expense: The net loss for fiscal year 2006, including non-cash stock option and warrant expenses, was approximately ($1.0 million), or a loss of ( $0.04) per share, representing a decrease of approximately $1.6 million compared to a fiscal year 2005. The net loss for fiscal 2006 includes non-cash stock based compensation and warrant expenses of approximately ($871,000), or ($0.03) per share, compared to net income including non-cash stock option and warrant expenses, of ($513,000) or ($0.02) per share for fiscal year 2005.

The fourth quarter 2006 net (loss), including non-cash stock option expense, was approximately ($35,000), compared to fourth quarter 2005 net income including non-cash stock option expense of $368,000. When comparing the fourth quarter of fiscal 2006 to the third quarter of fiscal 2006 the net (loss), including non-cash stock compensation and warrant expenses improved approximately $965,000 period-to-period. Third quarter of fiscal 2006 included approximately ($761,000) in non-cash warrant expense associated with the LiveWorld-WPP joint venture.

Cash: The Company ended fiscal year 2006 with approximately $3.2 million in cash and cash equivalents, a 126% increase over approximately $1.4 million in cash and cash equivalents at the end of fiscal year 2005. The Company was cash flow positive from operations, generating approximately $641,000 in fiscal year 2006. An additional $2 million in cash was raised in LiveWorld's September 2006 financing, while $250,000 cash was invested in the LiveWorld-WPP joint venture in October, 2006.

EBTIDA: Earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $255,000, or 3% of revenues, for the fiscal year 2006 and $1.3 million, or 14% of revenues, for fiscal 2005. The reduction in fiscal 2006 EBITDA as compared to fiscal 2005 was a result of an increased spending for product development, sales and marketing, and general and administrative costs. EBITDA is defined as net income or loss with an add-back for depreciation and amortization, non-cash stock-based compensation expense, non-cash based warrant expense, interest income net, other income and income taxes. Additionally, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies.

Form 10-SB Filing: On March 21, 2007, LiveWorld filed a form 10-SB with the Securities & Exchange Commission as part of its plan to list its securities on the NASD Over the Counter Bulletin Board (See separate March 21, 2007 release).

About LiveWorld
LiveWorld is leading the social marketing industry in creating innovative online communities, which help its clients build loyalty, brand awareness, customer engagement, customer care and business intelligence venues. The company provides Fortune 1000 clients overall social network marketing strategy, brand consulting , community management, design, development and hosting of private-label social network sites, and moderation services for these online communities as well as for any user content site. Applications and moderation services include rich profiles, friends lists, forums, blogs, photo albums, user video, customer support forums, groups and interactive webcasts.

With 20 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 60 country-language combinations, and is the trusted partner of leading brands worldwide, including: A&E, The Campbell Soup Company, The Coca Cola Company, eBay, HBO, HSBC, Kraft Foods, LeapFrog, Neutrogena, MINI Cooper USA, , TJX, QVC and many others.

LiveWorld is headquartered in San Jose, California with additional offices in New York City and London. 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, LiveWorld's efforts to list its securities on the OTCBB, 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. (See the Company's July 13, 2007 Second Amended Registration Statement on Form 10-SB for a list that includes other possible risk factors.)

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