Leading Cloud-Based Email Archiving Provider LiveOffice Reports Record Second Quarter Revenue

LiveOffice Partner Program and Cloud Email Support Drive 177 Percent Growth Globally

TORRANCE, Calif., August 3, 2010 – LiveOffice, the number-one provider of software-as-a-service (SaaS) email archiving, email compliance and email continuity solutions, today reported another consecutive successful quarter of record revenue driven largely by its rapidly growing LiveOffice Partner Program. The Partner Program, which accounted for 60 percent of new sales last quarter, drove the annual growth rate of LiveOffice Personal Archive to 177 percent for the second quarter of 2010.

“The number of technology resellers, distributors and OEMs looking to enhance their portfolio of cloud-based services with LiveOffice has increased exponentially in the last year,” said Nick Mehta, CEO of LiveOffice. “As a result, we’ve significantly scaled our business to meet the growing demands of the partner channel, while ensuring that we still provide our existing clients with the best service levels possible. Our research and development efforts are focused on providing our partners with the tools they need to successfully sell archiving services and increase their margins on the cloud services they offer.”

Second quarter partner highlights include:

• Intermedia Partner of the Year: The world’s largest Hosted Exchange provider, Intermedia, named LiveOffice its partner of the year during its annual partner summit earlier this year. Together, the companies are the first to offer fully integrated cloud email archiving services with Hosted Exchange 2010.
• 100+ Customers Archiving from Microsoft BPOS: LiveOffice sold and implemented its cloud archiving solution to more than 100 BPOS customers during the past nine months, increasing the differentiation and value of each deal for BPOS resellers, while providing end users with advanced compliance, legal discovery and continuity capabilities.

LiveOffice is also helping organizations expand the use of social media while addressing compliance concerns. Second quarter social media highlights include:

• Socialware Partnership: Socialware provides LiveOffice users with the ability to pre-review and route social networking activity through their existing compliance workflow within LiveOffice AdvisorMail, while automating enforcement of social media archiving policies throughout their entire organizations.
• linkedFA Partnership: linkedFA is the first social networking site designed specifically for financial professionals to communicate with investors and peers in a fully compliant and secure environment. A multiyear strategic partnership with LiveOffice helps linkedFA streamline financial professionals’ regulatory compliance process by enabling preapproval and archiving of social media posts and RSS feeds.

Other second quarter company highlights include:

• Expanded Presence in EMEA: During the second quarter, LiveOffice opened its newest ISO 27001-2005-certified data center in Amsterdam, the Netherlands, expanding operations and creating new opportunity for its existing European partners. As a result of the added services available in the region, LiveOffice welcomed numerous new partners in EMEA during the quarter.
• Support for the Electronic Discovery Reference Model Extensible Markup Language Standard (EDRM XML): The EDRM XML standard provides a uniform format for the exchange of content and metadata between different applications, systems and organizations involved in the e-discovery process. This new functionality enables approved IT and legal personnel to seamlessly export messages from LiveOffice Discovery Archive to e-discovery solutions from Clearwell Systems, CT Summation, FTI Technology and iCONECT, streamlining discovery workflow, reducing labor costs and expediting the e-discovery process.
• Launch of Centralized Download Manager for E-Discovery: The ability to export data from Discovery Archive for further review and analysis is critical for approved system administrators. Discovery Archive’s new Centralized Download Manager expedites this process by enabling approved personnel to easily monitor and track what data has already been downloaded as well as the status of any pending requests. In addition, reviewers are automatically notified when a requested data set is ready for download.
• Ernst & Young Entrepreneur of the Year® 2010 Award Finalist: CEO Nick Mehta was recently named a finalist for the Ernst & Young Entrepreneur of the Year ® 2010 Award in the Greater Los Angeles Area. According to Ernst & Young LLP, the awards program recognizes entrepreneurs who demonstrate extraordinary success in the areas of innovation, financial performance and personal commitment to their businesses and communities.

About LiveOffice

LiveOffice is the number-one provider of software-as-a-service email archiving, email compliance and email continuity solutions, with more than 10,000 clients and a 97-percent client-retention rate. Founded in 1998 and backed by leading private-equity firm Summit Partners, the company has more than 150 employees with deep experience in messaging, including executives and board members from Symantec, Microsoft, FrontBridge and Postini. For more information, call 800.374.2032 or visit www.liveoffice.com. Visit the LiveOffice Blog at http://blog.liveoffice.com or follow us on Twitter at http://www.twitter.com/liveoffice.

LiveOffice and its logo are trademarks of LiveOffice LLC. All other company names and products may be trademarks of their respective companies.