LiveDeal, Inc. Announces Fiscal 2009 Third-Quarter and Year-to-Date Financial Results

Conference Call Scheduled for Today, August 17, 2009
LAS VEGAS--(Business Wire)--
LiveDeal, Inc. (NASDAQ: LIVE), a provider of web-based customer acquisition
services for small local businesses and Internet Yellow Pages directory
services, announced today its financial results for the third quarter and nine
months of fiscal 2009. LiveDeal will host a conference call today, Monday,
August 17 at 4:15 p.m. EDT (1:15 p.m. PDT) to discuss these results. Dial-in
information is provided below.

Fiscal 2009 Third-Quarter and Year-to-Date Financial Results

For the third quarter of fiscal 2009, total revenue was $2.48 million, compared
to $5.43 million in the same quarter of fiscal 2008. Approximately $4.1 million
of the decline in revenues was attributable to a reduction in LiveDeal`s Yellow
Pages directory services business, which resulted in part from the sale of a
large portion of the Company`s customer list during the second quarter. This
decrease was partially offset by approximately $1.14 million in revenue from
LiveDeal`s Direct Sales business, which provides web-based customer acquisition
services for small local businesses.

The Company reported a net loss for the quarter of $2.1 million, or a net loss
of $0.35 per fully diluted share. The loss included the net impact of
approximately $0.42 million in restructuring charges and expenses related to the
separation of its former CEO.

As the Company reported during the quarter, the company initiated significant
restructuring that consolidated the company into its Las Vegas Headquarters and
initiated cost reductions that are intended to save the company over $1.8
million, or $0.29 per share over the fiscal year. At the same time it has
initiated an aggressive program to roll out products and services to enhance
current search engine marketing products that address the most critical needs of
small business as it migrates from offline to online customer acquisition.

"We are taking steps to reduce cost and repositioning the company for profitable
growth," said Richard Sommer, Chief Executive Officer. "Local is one of the
great opportunity spaces on the Internet, and LiveDeal is well positioned to
grow in that space."

Net revenues for the first nine months of fiscal 2009 decreased to $11.0 million
from $17.9 million in the same period of last year for reasons similar to those
stated above. The Company expects the percentage of its total revenues derived
from its Direct Sales business to continue to increase as the Company emphasizes
this premium segment (which includes the LiveSites, LiveAdvisor and LiveClicks
products) over its legacy Yellow Pages directory services business.

The Company reported a net loss of $20.3 million for the first nine months of
fiscal 2009, versus a net loss of $1.25 million for the same period in fiscal
2008. The net loss for the first nine months of fiscal 2009 included a charge of
$16.1 million for the impairment of goodwill and intangible assets related to
its legacy businesses.

As of June 30, 2009, LiveDeal had cash on hand of $9.2 million and no long-term
debt.

Fiscal 2009 Third-Quarter Highlights and Subsequent Events

* Richard Sommer named Chief Executive Officer (CEO)
* Initiated restructuring to reduce costs by $1.8 million or $0.29 per share.

During the Fiscal Second Quarter the Board of Directors replaced Mike Edelhart
with Richard Sommer as Chief Executive Officer in order to continue to focus the
company for growth. Mr. Sommer has previously been CEO of some of the fastest
growing companies in Silicon Valley in the late 1980s and 1990s in his first
tenure. He has led three previous search engine marketing companies that have
been extremely successful in aggressive growth and profitability, including
Realtor.com and HomeGain. All three search engine marketing (SEM) companies had
as their primary customers small and medium size businesses including Realtors
and Mortgage Brokers.

Further, the company initiated significant restructuring that consolidated the
company into its Las Vegas Headquarters and initiated cost reductions that are
intended to save the company over $1.8 million, or $0.29 per share over the
fiscal year.

The Company continued to focus its efforts on being the 'small business Internet
partner' who helps small businesses use the Internet and technology to bring
them customers and grow their business.

As a result of the growth in the Company's Direct Sales - Customer Acquisition
Services business, the Company addressed its revenue recognition policy.
Previously, the company recognised the value of the non-cancel-able portion of
the Direct Sales' customer contract as a receivable and billed the customer for
the amount of the contract over the period of the contract. The Company only
recognized a portion of the contract value as a revenue each month on a pro-rata
basis, with the remainder of the non cancel-able portion of the contract
maintained as a deferred revenue liability. In the fiscal second quarter 2009,
the company adjusted its balance sheet presentation related to direct sales
contracts to include in accounts receivable only those amounts that are
outstanding receivables after having been billed in accordance with the terms of
the contract. There was no material impact to the Company's financial condition,
operating cash flows, and results of operations as a result of this correction.
Prior periods have been adjusted to conform to the current period presentation.

Conference Call Information

LiveDeal will host a conference call to discuss its third quarter 2009 results
and provide an update with respect to its business today, Monday, August 17th at
4:15 p.m. EDT (1:15 p.m. PDT). To participate in the conference call, dial (800)
510-9661 (domestic) or (617) 614-3452 (international). The passcode for the call
is 770665518.

To listen to the live webcast of the conference call, please visit the Investor
Relations portion of our website at http://investor.livedeal.com or go directly
to the webcast link.

About LiveDeal, Inc.

LiveDeal, Inc. provides local customer acquisition services for small businesses
combined with an Internet Yellow Pages directory to deliver an affordable way
for businesses to extend their marketing reach to local, relevant customers via
the Internet. Through its online property, www.livedeal.com, LiveDeal delivers
local search engine marketing (SEM) such as its LiveClicks and LiveAdvisor
products that combine leading technology with a strong partnership model and an
inside sales team to create an efficient platform local businesses need to
create and optimize their Internet search advertising campaigns. LiveDeal
partners with Google, Yahoo!, MSN and others. LiveDeal, Inc. is headquartered in
Las Vegas, Nevada. For more information, please visit www.livedeal.com.

We have two inter-related primary lines of business: (1) We deliver a suite of
customer acquisition services for small businesses, sold via telemarketing and
supported by our websites and software that we have developed or licensed to
manage search and other Internet services efficiently, and (2) we maintain a
Yellow Pages directory with listings in every city and ZIP code across the U.S.

Forward-Looking and Cautionary Statements

This press release may include statements that constitute "forward-looking
statements," which are often characterized by the terms "may," "believes,"
"projects," "expects," or "anticipates," and do not reflect historical facts.
Forward-looking statements involve risks, uncertainties and other factors that
may cause actual results, performance or achievements of LiveDeal, Inc. and its
subsidiaries to be materially different from those expressed or implied by such
forward-looking statements. Forward-looking statements included in this press
release include statements concerning the Company`s expectation that: (i) it
will achieve a healthy foundation for future growth and value creation; (ii) it
will realize deferred revenue in fiscal 2009 and/or subsequent periods; (iii) it
will capture a larger share of the local Internet business; (iv) its expanded
suite of products will yield favorable results; and (v) its revenues will
increasingly come from the Company`s Direct Sales business.

Factors that may affect forward-looking statements and the Company`s business
generally include but are not limited to (i) the risk factors and cautionary
statements set forth in the Company`s Annual Report on Form 10-K for the fiscal
year ended September 30, 2008; (ii) other factors or statements described in the
Company`s other filings with the Securities and Exchange Commission; and (iii)
other factors that LiveDeal is currently unable to identify or quantify, but may
exist in the future.

Forward-looking statements speak only as of the date the statement was made.
LiveDeal does not undertake and specifically declines any obligation to update
any forward-looking statements.

LIVEDEAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, September 30,
2009 2008
(unaudited) (as restated)

Assets
Cash and cash equivalents $ 9,205,343 $ 4,639,787
Certificates of deposit 100,000 -
Accounts receivable, net 1,644,966 6,326,272
Prepaid expenses and other current assets 437,141 792,309
Customer acquisition costs, net - 642,220
Income taxes receivable 595,713 487,532
Deferred tax asset, net of valuation allowance 271,148 949,121
Total current assets 12,254,311 13,837,241
Accounts receivable, long term portion, net 2,701,813 2,011,143
Property and equipment, net 667,659 959,854
Deposits and other assets 81,712 83,547
Intangible assets, net 2,375,170 6,736,078
Goodwill - 11,706,406
Deferred tax asset, long term, net of valuation allowance - 3,863,502
Total assets $ 18,080,665 $ 39,197,771

Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $ 635,887 $ 1,078,712
Accrued liabilities 1,725,711 1,437,149
Current portion of capital lease obligation 68,820 61,149
Total current liabilities 2,430,418 2,577,010
Long term portion of capital lease obligation 135,729 170,838
Total liabilities 2,566,147 2,747,848

Commitments and contingencies

Stockholders' equity:
Series E convertible preferred stock, $0.001 par value, 200,000 shares authorized, 127,840 issued and outstanding, liquidation preference $38,202 10,866 10,866
Common stock, $0.001 par value, 100,000,000 shares authorized, 6,135,933 and 6,513,687 issued and outstanding at June 30, 2009 and September 30, 2008, respectively 6,136 6,514
Paid in capital 20,259,099 20,884,112
Retained earnings (accumulated deficit) (4,761,583 ) 15,548,431
Total stockholders' equity 15,514,518 36,449,923

Total liabilities and stockholders' equity $ 18,080,665 $ 39,197,771

LIVEDEAL, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months ended Nine Months ended
June 30, June 30,
2009 2008 2009 2008

Net revenues $ 2,448,569 $ 5,427,012 $ 11,006,358 $ 17,872,608
Cost of services 812,321 1,115,293 3,879,853 3,190,324
Gross profit 1,636,248 4,311,719 7,126,505 14,682,284

Operating expenses:
General and administrative expenses 3,812,983 4,807,460 12,126,364 12,047,495
Impairment of goodwill and intangible assets - - 16,111,494 -
Sales and marketing expenses 130,627 1,242,050 2,416,012 3,915,945
Total operating expenses 3,943,610 6,049,510 30,653,870 15,963,440
Operating loss (2,307,362 ) (1,737,791 ) (23,527,365 ) (1,281,156 )
Other income (expense):
Interest income, net 7,487 14,837 27,406 78,588
Other income (expense) 77,786 (18,269 ) 7,341,784 (14,637 )
Total other income (expense) 85,273 (3,432 ) 7,369,190 63,951

Loss from continuing operations before income taxes (2,222,089 ) (1,741,223 ) (16,158,175 ) (1,217,205 )
Income tax provision (benefit) (105,117 ) (221,763 ) 4,057,695 (2,486 )
Loss from continuing operations (2,116,972 ) (1,519,460 ) (20,215,870 ) (1,214,719 )

Discontinued operations:
Income (loss) from discontinued component, including disposal costs 7,422 (97,760 ) (147,999 ) (58,345 )
Income tax provision (benefit) 2,773 (36,523 ) (55,293 ) (21,798 )
Income (loss) from discontinued operations 4,649 (61,237 ) (92,706 ) (36,547 )

Net loss $ (2,112,323 ) $ (1,580,697 ) $ (20,308,576 ) $ (1,251,266 )

Earnings per share - basic1:
Loss from continuing operations $ (0.35 ) $ (0.24 ) $ (3.37 ) $ (0.20 )
Discontinued operations - (0.01 ) (0.02 ) (0.01 )
Net loss $ (0.35 ) $ (0.25 ) $ (3.38 ) $ (0.20 )

Earnings per share - diluted1:
Loss from continuing operations $ (0.35 ) $ (0.24 ) $ (3.37 ) $ (0.20 )
Discontinued operations - (0.01 ) (0.02 ) (0.01 )
Net loss $ (0.35 ) $ (0.25 ) $ (3.38 ) $ (0.20 )

Weighted average common shares outstanding:
Basic 5,999,268 6,222,351 6,006,770 6,214,099
5,999,268 6,222,351 6,006,770 6,214,099

1 Certain amounts may not total due to rounding of individual components.

LiveDeal. Inc.
John Evans, 480-324-2580
irinfo@livedeal.com

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