Companies Use Real-Time Email Signatures to Alleviate Customer Service Frustration.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 11, 2001

Real-Time Email Signatures, a new product feature developed by LivePerson(R), is the latest virtual advertising tool to alleviate customer frustration and humanize Internet communications.

The LivePerson Email Signature enables companies to communicate in real time with their customers via a chat icon embedded in the email message, alleviating wait times and frustration.

The real-time Email Signature is the brainchild of Robert LoCascio, CEO of LivePerson(R). The real-time Email Signature is part of LivePerson Corporate, the latest chat product from LivePerson(R) launched earlier this month. The Email Signature product is sure to humanize the way companies market and communicate with their customers by giving companies the ability to send promotional emails to customers with an icon embedded in the email signature. Companies can then encourage customers to click the "click-to-chat" icon for an instant, live interaction with a Virtual Operator right from the email. When activated (clicked) a pop up chat window appears on the customer's computer screen allowing them to chat in real-time with a Virtual Operator. The pop-up Chat window also has a section in which advertisers can promote sales, merchandise or other information during the chat. Each Virtual Operator can chat with an unlimited number of customers both simultaneously and privately, thereby decreasing customer frustration and reducing customer service operating costs.

The virtual world is not new to LivePerson(R), whose products allow e-commerce sites to actually see when a customer logs on to and browses their site. The LivePerson(R) application even alerts the company's Virtual Customer Service representative that a customer is at their "front door," similar to a brick and mortar store, allowing them to engage the customer in a LIVE Chat.

"Companies add the LivePerson Chat icon to their emails, websites and Intranets to facilitate sales and communication through a humanized online environment," says LoCascio. "The Internet can be sterile and difficult to navigate. How many of us have gotten lost on an e-commerce site? User-friendliness isn't enough to make a site successful anymore; websites need to be human-friendly."

Another incentive for companies adding the LivePerson Email Signature application to their emails is cost savings. Forrester Research estimates the average cost of a customer service phone call to be approximately $33 per call, while the average cost of a conversation via Live chat technology is about $7.33 per session, representing a potential cost savings of more than 75% with every LivePerson Chat interaction.

LivePerson(R) clients include Bloomingdale's, Neiman Marcus, Godiva, NDB, Prudential, and over 1,500 online businesses.

About LivePerson

LivePerson(R) (www.liveperson.com) is a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet. The LivePerson(R) service enables online businesses to communicate with Internet users in real time, thereby enhancing the online experience. With LivePerson Exchange, consisting of Chat, FAQ, Email and Document 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, with offices in San Francisco, London and Tel Aviv.

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 such statements to differ materially from actual future events or results. 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: our possible delisting from NASDAQ and the capital and market price requirements for continued NASDAQ listing; the limited history of providing the LivePerson service; our limited historical annual revenue and history of losses; an unproven business model; our dependence on the success of the LivePerson service; continued use by our clients of the LivePerson service; potential fluctuations in our quarterly and annual results; risks related to adverse business conditions experienced by our clients; risks related to managing our expanding operations and staff attrition; integration of acquisitions, including the acquisition of HumanClick Ltd. and other potential acquisitions; our dependence on key employees; risks related to our international operations; competition both for qualified personnel and in the market for real-time sales and customer service technology; building awareness of the LivePerson brand name; technology systems beyond LivePerson's control and technology-related defects that could disrupt the LivePerson service; our dependence on the growth of the Internet as a medium for commerce and the viability of the infrastructure of the Internet; responding to rapid technological change; and the possible unavailability of financing as and if needed. 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.