LiveWorld Chosen to Provide Custom Branded Live, Interactive Chat For Sony Music Entertainment Websites.

CAMPBELL, Calif., Aug. 21 /PRNewswire/ --

LiveWorld (OTC Bulletin Board: LVWD.OB) (www.liveworld.com), a leading provider of online marketing services, announced today that it has entered into a non- exclusive agreement with Sony Music Entertainment (SME) to provide a chat room platform and related services for interactive online chats, conducted by fans and artists.

"We are pleased to have this giant of the music industry as one of our clients, and Sony Music Entertainment now joins a growing list of companies taking advantage of our technology and services," commented LiveWorld Chairman and CEO Peter Friedman. "Sony Music Entertainment clearly recognizes the ever-growing importance of online chats as an effective tool to promote its artists on the Internet," Friedman added.

Under terms of the contract, LiveWorld will provide its highly scalable chat infrastructure as well as the services and tools to maintain its chat rooms. The rooms will be dedicated for various artists under the Columbia Records Group, Epic Records Group and other SME labels.

"Working with LiveWorld lets us provide our artists and their fans a reliable online chat environment," said Jim McDermott, Senior Vice President, EMD/New Technology, Sony Music Entertainment. "SME's artist and label websites draw over 4 million unique visitors per month in the US alone, and LiveWorld's technology and services gives us a stable platform for people to interact with one another on our sites."

About LiveWorld

LiveWorld is the leading provider of online relationship marketing services that help Fortune 1000 companies reduce their costs, increase their revenues, and strengthen customer relationships. LiveWorld's services enable marketers to target, acquire, and retain high-value customers. Services include community consulting, market research, community management and moderation, chat services, webcasts, discussion forums, and club/collaboration services. LiveWorld's clients include Kodak, AOL Time Warner, Cisco, IBM, Showtime, NBC, American Airlines, Food Network, Disney, American Express, Palm, TalkCity.com and numerous others. LiveWorld is headquartered in Campbell, California, and can be found on the Web at www.liveworld.com.

About Sony Music Entertainment

Sony Music Entertainment (SME), a leading global producer, manufacturer, and marketer of recorded music and video, has a presence in 60 countries. In 1994, SME launched www.sonymusic.com, which links to 36 Sony Music affiliate sites worldwide in addition to licensing and business-to-business sites. Reflecting its strategy for the broadband era, SME was the first major music company (in tandem with retail partners) to establish commercial download of singles, and has numerous investments in the digital media infrastructure, technology, wireless, service and digital content areas.

"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 concern whether or LiveWorld will be able to implement and deploy chat rooms to Sony Music Entertainment, Inc.'s various web properties and maintain a satisfactory user experience for visitors to aforementioned web site properties. Actual results may differ materially from those expressed in the forward-looking statements based upon known and unknown risks and uncertainties. In addition to the foregoing risks, please see the Company's most recent 10-K filed with the SEC for a more complete description of the risks facing the Company.

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