LiveWorld Announces 4th Quarter and Fiscal Year 2009 Financial Results

Company Reports Positive Cash Flows and non-GAAP profitability

SAN JOSE, Calif., NEW YORK & LONDON — March 23, 2010 – LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading social network marketing agency, today reported fourth quarter 2009 total revenues of $2.3 million and a net loss of $1,000 as compared to $3.0 million in total revenues and net income of $165,000 reported in the fourth quarter of 2008. For fiscal year 2009 the Company reported total revenues of $9.8 million and a net loss of $150,000 as compared to $11.8 million in total revenues and a net loss of $1.1 million for the fiscal year 2008. On a non-GAAP basis, the Company reported net income of $149,000 for the fourth quarter of 2009 which was a decrease of $251,000 from the $400,000 non-GAAP net income for the fourth quarter of 2008. For fiscal year 2009 the non-GAAP net income was $629,000, an increase of $741,000 compared to the non-GAAP net loss of $112,000 for fiscal year 2008.

The Company reported positive cash flow of $40,000 for the fourth quarter of 2009, an improvement of $72,000 when compared to the $32,000 use of cash in the fourth quarter of 2008. For the full year, the Company generated positive cash flow of $222,000. The company ended the year with $1.6 million in cash and cash equivalents, an increase of 16% from the $1.4 million reported at the end of fiscal year 2008. In addition, the company reported a positive working capital balance of approximately $1.6 million at the end of the fourth quarter of 2009 as compared to the $1.2 million at the end of the fourth quarter of 2008.

“The financial results of the fourth quarter marked our continued improvement in operations and resulted in an overall positive year, in spite of the global economic challenges of 2009,” said David Houston, Chief Financial Officer of LiveWorld. “We saw a material improvement in the operating results and generated positive cash flow in each quarter of the fiscal year. As we see improvement in the overall economy, we believe our product offerings will be the catalyst for growth and drive new revenues for 2010.”

“While pursuing a successful fiscally conservative strategy in 2009, we also invested in creating new social web marketing services and products,” said Peter Friedman, Chairman & CEO, LiveWorld. “Our moderation services and conversation applications for Facebook, social web insight services and ability to created integrated solutions across the social media landscape are meeting very positive response from brands.”

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

LiveWorld defines non-GAAP net income or Adjusted EBITDA as net income or loss before interest income, income taxes, depreciation and amortization, and non-cash stock-based compensation expense. 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.

About LiveWorld:
LiveWorld is the go-to social network marketing agency for brands to engage customers across the social media landscape. With 26 years of social media experience, having delivered hundreds of community sites and over 1 Million hours of moderation in 70 country-language combinations, we have the know-how to create a focused social strategy, provide community relations management, content and social engagement moderation and deploy flexible platforms. Our strategy, community relations management and moderation services are available packaged with platforms or a la carte and can be applied to Facebook, Twitter, other networks, distributed social networks or central sites.

Our platform solutions include: Enterprise class Facebook conversation applications, LiveBar 2.0 distributed social networking, Community Center 3.0 for central community sites, API platforms for agencies to develop community sites, Idea Power, Ask & Answer and Moderation Server 2.0, the most advanced moderation tools suite in the industry.

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, and the results of its product development efforts. The balance sheet, operating results, and statements of cash flows for the periods ended December 31, 2008 and 2009 where neither audited nor reviewed by an independent accounting firm and are subject to change upon such a review or audit being completed. 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.

LiveWorld Contacts

PR Contacts:
Krause Taylor Associates:
Barbara Krause barbara@krause-taylor.com 1 (408) 981.2429 (cell)

IR Contact: David Houston: LiveWorld dhouston@liveworld.com 1 (408) 615.8496

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