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/


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