LivePerson Third Quarter Revenue Increases 45%

Company Achieves GAAP Profitability as Quarterly Sequential Growth Tops 11%

NEW YORK, NY - October 28, 2003 - LivePerson, Inc. (NASDAQ: LPSN), a provider of technology facilitating real-time online customer interaction, today announced financial results for the third quarter ended September 30, 2003.

Revenue for the quarter was $3.1 million, a 45% increase from the prior year, and an 11% sequential increase versus the second quarter of 2003. Revenue growth from the prior year was driven by a combination of new clients, existing client growth and the impact of the NewChannel asset acquisition that occurred in July 2002, as well as expansion in all product lines, including Sales Edition, Service Edition, and LivePerson Pro for small businesses.

"We are pleased with the results in the third quarter," CEO Robert LoCascio stated. "The more rapid revenue growth we experienced in the second quarter continued in the third, and enabled us to surpass our expectations. As a result, we're increasing our revenue expectation for 2003 from $11.5 million to $11.9 million, representing a 45% increase in revenue from 2002."

As in the second quarter, a combination of new customer wins, increased revenue from existing clients and the first full quarter impact for several clients purchasing the higher-priced Sales Edition drove LivePerson's sequential growth. New clients added during the quarter include NetBank, Pitney Bowes and Tiscali, while growth continued within existing clients including HP, eBay and Forex.

Net income for the quarter was $9,000 or $0.00 per share, as compared to a net loss of $(1.0) million or $(0.03) per share in the prior quarter, and a net loss of $(28,000), or $(0.00) per share in the third quarter of 2002. Results in the prior quarter included a restructuring charge of $1.0 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter was $467,000 versus $211,000 in the third quarter of 2002. A reconciliation of the differences between EBITDA and the most comparable financial measure calculated and presented in accordance with generally accepted accounting principles (GAAP) is located under the heading "Reconciliation of Non-GAAP Financial Information to GAAP" immediately following the Condensed Consolidated Statements of Operations included in this press release.

LivePerson considers EBITDA and cash from operations to be important financial indicators of the Company's operational strength and the performance of its business. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.

The Company's cash balance increased by $0.9 million in the quarter to $9.6 million.

  Financial Expectations
  The Company currently expects the following financial results:
   * Sequential quarterly revenue growth of 8%, to $3.4 million for Q4 2003
   * Annual revenue growth of 45%, to $11.9 million for the full year 2003
   * EBITDA of $0.02 per share and GAAP EPS of $0.01 in Q4 2003
   * EBITDA of $0.02 per share and GAAP EPS of $(0.02) for the full year
     2003, including a $1.0 million restructuring charge recorded in Q2 2003
   * EBITDA of $0.05 per share and EPS of $0.01 for the full year 2003,
     excluding the $1.0 million restructuring charge

The difference between EBITDA per share, a non-GAAP measure, and GAAP EPS, is interest, taxes, depreciation and amortization and is expected to be $0.01 per share in Q4 and $0.04 per share for the full year 2003.

EPS excluding restructuring charges, a non-GAAP measure, excludes the $1.0 million charge recorded in Q2 2003. The difference between EPS excluding the restructuring charge and GAAP EPS is expected to be $0.00 in Q4 and $0.03 for the full year 2003.

                               LivePerson, Inc.
               Condensed Consolidated Statements of Operations
               (In Thousands, Except Share and Per Share Data)

                                  Three Months Ended      Nine Months Ended
                                    September 30,           September 30,
                                     (Unaudited)             (Unaudited)
                                   2003        2002        2003        2002
  Total revenue                  $3,142      $2,161      $8,497      $5,860

  Operating expenses:
    Cost of revenue                 501         480       1,508       1,136
    Product development             419         303       1,170         880
    Sales and marketing             910         600       2,494       1,657
    General and administrative      916         660       2,464       2,081
    Amortization of other
     intangibles                    253         125         760         125
    Non-cash compensation,
     net of reversals               143          47         191         265
    Restructuring charge              -           -       1,024           -
       Total operating expenses   3,142       2,215       9,611       6,144

  Loss from operations                -         (54)     (1,114)       (284)

  Other income, net                   9          26          20          97

  Income (loss) before cumulative
   effect of accounting change        9         (28)     (1,094)       (187)
  Cumulative effect of accounting
   change                             -           -           -       5,338

  Net income (loss)                  $9        $(28)    $(1,094)    $(5,525)

  Basic net income (loss) per share:
    Income (loss) before cumulative
     effect of accounting change  $0.00      $(0.00)     $(0.03)     $(0.00)

    Cumulative effect of
     accounting change              -           -           -         (0.16)

    Net income (loss)             $0.00      $(0.00)     $(0.03)     $(0.16)

  Diluted net income (loss)
   per share:
    Income (loss) before cumulative
     effect of accounting change  $0.00      $(0.00)     $(0.03)     $(0.00)

    Cumulative effect of
     accounting change              -           -           -         (0.16)

    Net income (loss)             $0.00      $(0.00)     $(0.03)     $(0.16)

  Weighted average shares
   outstanding used in basic net
   income (loss) per share
   calculation               34,887,114  34,046,504  34,426,751  34,021,670

  Weighted average shares
   outstanding used in diluted
   net income (loss) per
   share calculation         36,882,683  34,046,504  34,426,751  34,021,670


                               LivePerson, Inc.
           Reconciliation of Non-GAAP Financial Information to GAAP
               (In Thousands, Except Share and Per Share Data)


  Unaudited Supplemental Data
    The following information is not a financial measure under generally
    accepted accounting principles (GAAP). In addition, it should not be
    construed as an alternative to any other measures of performance
    determined in accordance with GAAP, or as an indicator of our operating
    performance, liquidity or cash flows generated by operating, investing
    and financing activities as there may be significant factors or trends
    that it fails to address. We present this financial information because
    we believe that it is helpful to some investors as one measure of our
    operations. We caution investors that non-GAAP financial information, by
    its nature, departs from traditional accounting conventions;
    accordingly, its use can make it difficult to compare our results with
    our results from other reporting periods and with the results of other
    companies.

                                  Three Months Ended      Nine Months Ended
                                    September 30,           September 30,
                                     (Unaudited)             (Unaudited)
                                   2003        2002        2003        2002
  Net income (loss) in
   accordance with generally
    accepted accounting
     principles                      $9        $(28)    $(1,094)    $(5,525)
    Add/(less):
    (a) Amortization of other
         intangibles                253         125         760         125
    (b) Non-cash compensation,
         net of reversals           143          47         191         265
    (c) Depreciation                 71          93         279         274
    (d) Cumulative effect of
         accounting change            -           -           -       5,338
    (e) Interest income, net         (9)        (26)        (27)        (97)
  EBITDA (1)                       $467        $211        $109        $380

  Fully diluted EBITDA per share  $0.01       $0.01       $0.00       $0.01

  Weighted average shares used
   in EBITDA per share
    calculation Fully
     diluted                 36,882,683  34,321,657  35,774,464  34,276,555

  EBITDA                           $467        $211        $109        $380
    Add/(less):
    Changes in operating
     assets and liabilities        (252)        616         771         684
    Provision for doubtful accounts  -            -          15           -
    Interest income, net              9          26          27          97
  Net cash provided by
   operating activities            $224        $853        $922      $1,161

  (1)  Earnings before interest, taxes, depreciation and amortization.


                               LivePerson, Inc.
                    Condensed Consolidated Balance Sheets
               (In Thousands, Except Share and Per Share Data)

                                      September 30, 2003   December 31, 2002
                                          (unaudited)
  ASSETS

  Current assets:
    Cash and cash equivalents                     $9,644             $8,004
    Accounts receivable, net                         469                607
    Prepaid expenses and other current assets        401                299
      Total current assets                        10,514              8,910

    Property and equipment, net                      347                595
    Other intangibles, net                           253              1,014
    Security deposits                                128                124
    Other assets                                     235                194
      Total assets                               $11,477            $10,837

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Accounts payable                                $106               $136
    Accrued expenses                               2,381              1,837
    Deferred revenue                               1,039                800
      Total current liabilities                    3,526              2,773

  Other liabilities                                  217                176

  Commitments and contingencies

  Total stockholders' equity                       7,734              7,888
       Total liabilities and
        stockholders' equity                     $11,477            $10,837

  About LivePerson

LivePerson is a leading provider of technology facilitating real-time online customer interaction. LivePerson's services enable online businesses to communicate securely with Internet users in real time, thereby enhancing the online experience. With real-time solutions consisting of chat, marketing and selling tools, a self-service FAQ product and email management, LivePerson offers clients the opportunity to increase sales, lower customer service costs and increase responsiveness to customer needs. LivePerson is headquartered in New York City.

EBITDA Financial Disclosure

Investors are cautioned that the EBITDA, or earnings before interest, taxes, depreciation and amortization, information contained in this press release is not a financial measure under generally accepted accounting principles. In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with generally accepted accounting principles, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities, as there may be significant factors or trends that it fails to address. We present this financial information because we believe that it is helpful to some investors as one measure of our operations. We caution investors that non-GAAP financial information such as EBITDA, by its nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare our results with our results from other reporting periods and with the results of other companies.

Forward-Looking Statements

Statements in this press release regarding LivePerson, Inc. that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. It is routine for our internal projections and expectations to change as the quarter progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which the Company bases its expectations may change prior to the end of the quarter. Although these expectations may change, we are under no obligation to inform you if they do. Our company policy is generally to provide our expectations only once per quarter, and not to update that information until the next quarter. Actual events or results may differ materially from those contained in the projections or forward-looking statements. The following factors, among others, could cause LivePerson's actual results to differ materially from those described in a forward-looking statement: the limited history of providing the LivePerson services; our limited historical annual revenue and history of losses; the possible unavailability of financing as and if needed; an unproven business model; our dependence on the success of the LivePerson chat service; continued use by our clients of the LivePerson services; potential fluctuations in our quarterly and annual results; risks related to adverse business conditions experienced by our clients; our dependence on key employees; risks related to our international operation, particularly our operations in Tel Aviv, Israel, and the current civil and political unrest in that region; competition for qualified personnel; competition in the real-time sales and customer service technology market; building awareness of the LivePerson brand name; technology systems beyond LivePerson's control and technology-related defects that could disrupt the LivePerson services; our dependence on the growth of the Internet as a medium for commerce and the viability of the infrastructure of the Internet; and responding to rapid technological change. This list is intended to identify only certain of the principal factors that could cause actual results to differ from those discussed in the forward-looking statements. Readers are referred to the reports and documents filed from time to time by LivePerson with the Securities and Exchange Commission for a discussion of these and other important risk factors that could cause actual results to differ from those discussed in forward-looking statements.

   Media Contacts:
   Jennifer Regnault
   LivePerson, Inc.
   (212)-609-4213
   jregnault@liveperson.com

   Budd Zuckerman
   Genesis Select Corp.
   (303)-415-0200
   budd@genesisselect.com

SOURCE: LivePerson, Inc.

CONTACT: Younjee Kim, +1-212-609-4222, ykim@liveperson.com

Web site: http://www.liveperson.com/