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LiveWorld Announces Record $3.1 Million Revenue For 2nd Quarter 2008

Leading social media marketing agency expands revenue while improving bottom line numbers

San Jose, CA and London, August 12, 2008 – LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a world leader in social media marketing, today reported approximately $3.1 million in total revenues for the second quarter of 2008. This represents 25% growth over the $2.5 million in total revenues from a year ago, and was an improvement of approximately $153,000 over the first quarter of 2008.

$3.1 Million is the Company's largest revenue quarter in the 12 year history of its private label social media services business.

The company improved its operating results by approximately $500,000 when compared to the second quarter of 2007, and by $364,000 when compared to the first quarter of 2008. GAAP net loss for the second quarter of 2008, including non-cash expense was approximately $138,000. This compares to a second quarter of 2007 GAAP net loss of approximately $637,000, and a GAAP net loss of approximately $502,000 for the first quarter of 2008.

LiveWorld's Adjusted EBITDA for the second quarter of 2008 was $107,000, a $545,000 improvement compared to a $438,000 loss for the second quarter of 2007. Second quarter 2008 results represent a $374,000 improvement compared to a $267,000 Adjusted EBITDA loss for the first quarter of 2008. LiveWorld defines Adjusted EBITDA as net income or loss with an add-back for depreciation and amortization, non-cash stock-based compensation expense, interest income net, and income taxes. 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.

"Our revenue growth is driven by our ability to help major brands transform their relationship with customers through vibrant online communities," said Peter Friedman Chairman and CEO of LiveWorld. "We are distinguished in the industry by offering the complete social marketing solution, which provides not only the technology platform but the social know-how to make online community successful for brands. Our business has expanded due to the growth of current clients, the addition of new clients and the launch of new services."

Since the beginning of 2008, LiveWorld launched new services for ten Fortune 500 global brands in the consumer packaged goods, pharmaceuticals, telecom, financial and travel sectors. The Company also introduced multiple new products such as its LiveAPI Suite 2.0 for digital agencies and inhouse web groups and its LiveEngage 1.0 Widget for Facebook.

"Our financial results reflect a growth strategy combined with conservative fiscal management," said David Houston, LiveWorld's Chief Financial Officer. "In 2007 we invested to build a foundation for growth. In 2008 we are bringing our spending in line with cash from operations, while maintaining an appropriate cash reserve."

Detailed quarterly financial information may be downloaded at www.liveworld.com or at www.pinksheets.com.

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

© 2008 LiveWorld, Inc. all rights reserved