LiveWorld Announces 2004 Results: $5.2 Million Revenue, 103% Revenue Growth, 1,187% Profit Growth, $0.01 EPS

LiveWorld Announces 2004 Results: $5.2 Million Revenue, 103% Revenue Growth, 1,187% Profit Growth, $0.01 EPS Full-Service Online Community Agency Builds Financial Momentum LOS GATOS, Calif., Jan. 18 /PRNewswire-FirstCall/ -- LiveWorld, Inc. (Pinksheets: LVWD.PK) today announced strong Year 2004 financial results, including doubling revenue and the company's second profitable year. The company further reported substantial revenue and profit growth for fourth-quarter 2004. Revenues for Year 2004 were $5,235,181 representing 103% growth over Year 2003 revenues of $2,577,628. Q4 2004 revenue was $1,572,219, representing 152% growth of over Q4 2003 revenue of $624,506, and 6% growth over Q3 2004 revenues of $1,477,422. The company announced its seventh consecutive profitable quarter and its second profitable year. Year 2004 earnings showed a profit before income taxes of $307,603, or an EPS before income taxes of 1.2 cents ($0.0116). This represents 1,188% growth compared to Year 2003 profit before income taxes of $23,875, or an EPS before income taxes of $0.0009. Year-over-year and consecutive quarterly profits also showed strong improvement. Profit before income taxes for Q4 2004 was $165,567, or an EPS before income taxes of $ 0.006 per share. This represents 25% growth compared to a Q4 2003 profit of $132,942, or an EPS before income taxes of $0.005, and 698% growth compared to a Q3 2004 profit of $20,757, or EPS before income taxes of $0.0008. The Company said that it expects continued growth in revenue and profit for Year 2005. Actual results may vary quarter to quarter as the Company invests more in overall growth of the business. The company's cash position at year-end was just over $1,000,000. About LiveWorld, Inc. LiveWorld (www.liveworld.com) is the leading full service online community agency that creates, operates, and manages loyalty marketing, customer support, and business intelligence communities based on the Company's unique community applications platform and strategic community model. LiveWorld solutions enable Fortune 1000 companies to strengthen customer relationships, increase revenues, and reduce costs. Clients include companies such as America Online, A&E Television Networks, BEA Systems, eBay, The Campbell Soup Company, Discovery Communications, Dove, HBO, Intel, MINI Cooper USA, PayPal, QVC, Slim-Fast, SUN Microsystems, The Walt Disney Company and Warner Brothers. LiveWorld is headquartered in Los Gatos, California. "Safe Harbor" Statement Under The Private Securities Litigation Reform Act: This press release contains forward-looking information concerning the Company's future expectations, forecasts, and prospects. These statements include those regarding the Company's current or future financial performance. Actual results may differ materially from those expressed in the forward looking statements made by the Company as a result of, among other things, the Company's ability to successfully deliver upon its contractual commitments, clients continuing their ongoing relationships with the Company, ability to acquire new customers, and other risk factors described in the Company's latest 10Q and 10K filed with the SEC. Financial information quoted in this release represents results that have not been audited or reviewed by an outside accounting firm and are subject to change upon such a review. LiveWorld Financial Statements 12/31/04 (These statements have not been audited or reviewed by an outside accounting firm and are subject to change upon such a review.) Income Statement: 2002 - 2004 2002 Q1 '03 Q2 '03 Q3 '03 Revenue $2,120,663 $600,684 $649,613 $702,825 Expense * 6,303,314 767,118 681,435 683,767 Net Ordinary Income (4,182,652) (166,434) (31,821) 19,058 Other Income 82,877 2,418 5,959 11,034 Other Expense/(Expense Reduction) ** (354,973) 1,000 (43,775) (7,946) Net Other Income 437,850 1,418 49,734 18,980 Net Income ($3,744,802) ($165,016) $17,912 $38,037 Outstanding Shares 25,358,874 25,358,874 25,358,874 25,358,874 Earnings Per Share (EPS) ($0.1477) ($0.0065) $0.0007 $0.0015 Q4 '03 2003 Q1 '04 Q2 '04 Revenue $624,506 $2,577,628 $968,216 $1,217,323 Expense * 597,448 2,729,769 928,553 1,197,293 Net Ordinary Income 27,058 (152,140) 39,663 20,030 Other Income 12,720 32,130 2,963 2,776 Other Expense/(Expense Reduction) ** (93,164) (143,885) (54,667) (1,178) Net Other Income 105,884 176,016 57,630 3,954 Net Income $132,942 $23,875 $97,293 $23,984 Outstanding Shares 25,358,874 25,358,874 26,584,707 26,584,707 Earnings Per Share (EPS) $0.0052 $0.0009 $0.0037 $0.0009 Q3 '04 Q4 '04 2004 Revenue $1,477,422 $1,572,219 $5,235,181 Expense * 1,459,756 1,430,502 5,016,105 Net Ordinary Income 17,666 141,717 219,076 Other Income 3,425 4,241 13,405 Other Expense/(Expense Reduction) ** 333 (19,609) (75,121) Net Other Income 3,092 23,851 88,527 Net Income $20,757 $165,567 $307,603 Outstanding Shares 26,584,707 26,584,708 26,584,708 Earnings Per Share (EPS) $0.0008 $0.0062 $0.0116 Balance Sheet Dec 31, '03 Mar 31, '04 Jun 30, '04 Assets Cash 946,506 949,441 960,833 Accounts Receivable, Net 269,878 408,018 410,720 Other Current Assets 36,162 132,687 136,241 Total Current Assets 1,252,546 $1,490,147 $1,507,795 Long Term Assets 258,479 294,250 282,971 Total Assets $1,511,025 $1,784,397 $1,790,766 Liabilities & Equity Accounts Payable 32,114 115,899 29,504 Deferred Revenue 220,252 181,973 117,989 Other Current Liabilities 156,703 268,951 401,715 Total Current Liabilities 409,069 566,823 549,209 Total Long Term Liabilities -- -- -- Total Liabilities $409,069 $566,823 $549,209 Common Stock 25,481 25,481 25,481 Treasury Stock - Par (55) (55) (55) Additional Paid-in Capital 135,149,218 135,167,543 135,167,543 Treasury Stock Excess of Par (22,159) (22,159) (22,159) Retained Earnings (134,050,529) (133,953,237) (133,929,253) Total Equity $1,101,956 $1,217,573 $1,241,557 Total Liabilities & Equity $1,511,025 $1,784,397 $1,790,766 30-Sep-04 31-Dec-04 Assets Cash 973,127 1,010,428 Accounts Receivable, Net 428,359 589,074 Other Current Assets 133,893 50,771 Total Current Assets $1,535,380 $1,650,274 Long Term Assets 388,301 499,142 Total Assets $1,923,681 $2,149,415 Liabilities & Equity Accounts Payable 135,449 272,344 Deferred Revenue 144,680 288,813 Other Current Liabilities 373,048 160,376 Total Current Liabilities 653,177 721,533 Total Long Term Liabilities -- -- Total Liabilities $653,177 $721,533 Common Stock 25,481 25,481 Treasury Stock - Par (55) (55) Additional Paid-in Capital 135,167,543 135,167,543 Treasury Stock Excess of Par (22,159) (22,159) Retained Earnings (133,900,305) (133,742,928) Total Equity $1,270,505 $1,427,882 Total Liabilities & Equity $1,923,681 $2,149,415 Notes * Expenses Included in "Expense" are significant one time legal expenses the Company incurred in 2004 associated with its efforts to collect money past due or otherwise due from past clients. ** Other Income and Other Expense / (Expense Reduction) 2002 Other Income is mostly interest income. Other Expense Reduction is mostly associated with restructuring and write off adjustments. 2003 Other Expense Reduction is mostly associated with accounting reversals of accruals from prior years. Q1 2004 Other Expense Reduction is mostly associated with the net favorable impact of settlement of two one time legal matters related to payments and past due amounts from past clients for business transactions in Year 2000. Q4 2004 Other Expense Reduction is mostly associated with the reversal in non cash accounting accruals from 2003. Source: LiveWorld, Inc. CONTACT: Peter Friedman of LiveWorld, Inc., 1-800-514-2060 Web site: http://www.liveworld.com/ ------- Profile: International Entertainment