Company’s Unprecedented Quarter Validates Economic Resiliency of SaaS Business Model

TORRANCE, Calif., January 14, 2009 — LiveOffice, the leading provider of software-as-a-service(SaaS) email archiving solutions, today announced record new sales growth in the fourth quarter of 2008, which reflects 148-percent growth from the fourth quarter of 2007. The company attributes the dramatic growth in sales to customers’ increasing interest in less-costly SaaS solutions during tougher economic times. In addition, in spite of their financial challenges, many organizations feel a heightened obligation to address regulatory and legal requirements surrounding the proper handling of electronic communications.

According to the Enterprise Strategy Group (ESG), a leading industry analyst firm, currently eight out of 10 electronic discovery events involve email and attachments. However, recent financial scandals point to an inevitable increase in companies’ e-discovery and compliance needs. “Today the decision isn’t whether or not to archive email, but instead how best to implement a solution,” said Brian Babineau, senior analyst with ESG. “In light of the current economy, an increasing number of companies are turning to SaaS solutions to help them reduce upfront capital expenditures on in-house hardware and software deployments, while also lessening the system management burden placed on overworked IT resources.”

LiveOffice offers companies the benefits of tried-and-true SaaS archiving and hosted email solutions with just the right amount of customization and control. Washington Federal, a Washington state-based savings and loan institution, is among the organizations that have come to believe in the SaaS delivery model. Notes Washington Federal’s Senior Vice President, Terry Permenter, “We were extremely impressed with the account team and level of service LiveOffice presented to us. Our evaluation criteria were highly complex, but LiveOffice was able to put a checkmark next to every requirement we had. I’m now convinced that SaaS is the industry model for infrastructure and many applications going forward. I can’t imagine why any internal IT department needs to run email anymore.”

In 2008, LiveOffice maintained its strong foothold in the financial services industry while also successfully expanding its reach outside of the sector with the introduction of Mail Archive, a SaaS email archiving solution designed to meet mailbox management and e-discovery needs. “Our expansion into new industries is a powerful testament to the trust our clients have put in us and the value our solutions provide to them,” said LiveOffice CEO, Nick Mehta. “We now proudly manage email-related services for an impressive roster of clients in a range of verticals, from healthcare, education and government to hospitality and retail.”

About LiveOffice

LiveOffice is a leading provider of software-as-a-service email archiving and Hosted Exchange 2007 solutions, with more than 8,500 clients and a 99-percent client-retention rate. Founded in 1998 and backed by leading private-equity firm Summit Partners, the company has more than 100 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.

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