LiveWorld Announces First Quarter 2008 Results: Company Achieves 15 % Year- Over-Year Revenue Growth

San Jose, CA and London, May 15, 2008 – LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading social networking marketing agency, today reported approximately $3 million in revenue for the three months ended March 31, 2008. This represents a 15 percent growth over the $2.6 million in revenues from a year ago for the quarter ended March 31, 2007. This also includes a 93 percent growth in revenues excluding revenues from the Company’s largest clients (currently eBay and previously AOL US).

Revenues:b Total revenues for the first quarter of 2008 were approximately $3 million representing a 15 percent growth over $2.6 million in revenue for the first quarter of 2007. When compared to the $3 million in revenues for the fourth quarter of 2007, the revenues for the three months ended March 31, 2008 were relatively flat due to the anticipated impact of seasonality. As expected and previously reported, in the fourth quarter of 2007 the Company’s revenues from AOL US came to an end. AOL US represented 25 percent of total revenues for the first quarter of 2007, or approximately $647,000. For the first quarter of 2008 the Company did not have any revenues associated with AOL US. This reduction in AOL US revenues was offset by revenues from new and existing clients of more than $1 million in the first quarter of 2008. The Company currently expects revenues for the full year of 2008 to be higher than revenue for 2007, as it anticipates continued revenue growth for the remaining nine months of the year.

Cash Used in Operations: For the first quarter of 2008, the Company had a use of cash in operations of approximately $37,000 which was a substantial reduction from the use of cash in operations of $284,000 for the fourth quarter of 2007, or a cash savings of approximately $247,000 period-to-period.

Net Loss Including the Impact of Non-Cash Expenses: The net loss for the first quarter of 2008, including non-cash stock option, was approximately $502,000, or a loss of $0.02 per share, representing an improvement of approximately $120,000 compared to the same period for 2007 and an improvement of approximately $82,000 over the fourth quarter of 2007. The net loss for the three months ended March 31, 2008 includes non-cash expenses of approximately $273,000.

Cash: The Company ended the first quarter with approximately $1.9 million in cash and cash equivalents, a decrease of approximately $97,000 from the fourth quarter of 2007. The Company stated that it has demonstrated historically over multiple years that it can manage its business to be net cash positive from operating activities. Given the current state of the economy and stock market the Company intends to more conservatively manage cash flow in 2008. Cash flow from operations for 2008 may or may not be net positive and will vary from quarter to quarter. However the Company intends to manage the cash flow such that cash flow from operations and from its current cash balance is more than enough to sustain the business.

Share Listing: On April 11, 2008 the Company filed a Form 15 with the SEC to voluntarily deregister its Common Stock under Section 12(g) of the Securities Exchange Act of 1934, as amended. The Board of Directors determined this was the best course of action after carefully considering the high costs of remaining on the OTC Bulletin Board, especially those associated with being a public reporting company including the additional costs of being complaint with the Sarbanes-Oxley Act by the end of 2008. The Company believes the best use of its funds in an overall down stock market is to invest in operations and maintain a strong cash position.

Upon the filing of the Form 15, LiveWorld became a non-reporting public company. Although the Company is no longer required to file financial statements and other information with the SEC, it plans to continue its rigorous financial management and publish financial information on its web site, as well as, on the Pink Sheets web site (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

LiveWorld Contacts
PR Contact: Falguni Bhuta: Krause Taylor Associates falguni@krause-taylor.com (408) 918-9087
IR Contact: David Houston: LiveWorld, Inc. ir@liveworld.com 408 615-8496