Company Builds Strong Senior Management Team, Invests in Creating a Foundation to Rapidly Scale its Content and Commerce Business

VANCOUVER--(BUSINESS WIRE)--Communicate.com Inc. d.b.a Live Current Media Inc. (OTCBB:CMNN), a media company built around content and commerce destinations, today announced financial results for the fourth quarter and fiscal year ended December 31, 2007. All results are reported in US Dollars under United States generally accepted accounting principles (US GAAP). The financial results for the fourth quarter are extrapolated from the Company’s unaudited financial statements. The financial results for the fiscal year ended December 31, 2007 are extrapolated from the Company’s audited financial statements and should be read in conjunction with the Company's December 31, 2007 financial statements and related notes included in its annual report on SEC Form 10-KSB.

Select Fiscal 2007 Highlights and Corporate Developments:

• Appointed Geoffrey Hampson as CEO and Chairman of the Board, Jonathan Ehrlich as President and COO, and Mark Melville as Chief Corporate Development Officer replacing the former senior management team with these experienced managers and entrepreneurs with proven track records in creating shareholder value.
• Appointed James P. Taylor, CPA, to the Board of Directors and elected him Chairman of the Audit Committee, and Mark Benham to the Board of Directors. The appointment of these Directors reflects the Company’s desire to ensure competent and knowledgeable individuals are on the Board of Directors to assist and guide management.
• Closed two non-brokered private placements of common shares: $1 Million from new CEO Geoff Hampson and a subsequent placement of $5.1 Million at $2 per share. Participants in the $5.1 Million financing included institutional investors as well as Live Current CEO, Geoffrey Hampson and President & COO, Jonathan Ehrlich.
• Launched a new website for Perfume.com to fuel organic growth.
• Regained total control of the Company’s valuable travel and country domains.

Subsequent Growth-Focused Developments:

• Signed strategic agreement with Wanderspot to design and build select online sites including travel-focused destinations: Brazil.com, Indonesia.com, Malaysia.com and Vietnam.com.
• Appointed Dr. Boris Wertz, known Internet pioneer to the Board of Directors, further establishing a Board with operational and management experience in the consumer Internet space.
• Entered into a binding agreement to acquire Auctomatic, a new commerce platform, and add experienced product and technology development team to the Company.

Geoffrey Hampson, CEO and Chairman of Live Current stated, “2007 reflected a year of major shifts as we put necessary changes in action to bring us much closer to our goal of creating a top echelon content and commerce Company. Since joining the Company in June of 2007, I have been focused on building a world class team to turn our valuable real estate into some of the best, most highly trafficked and profitable consumer destinations on the Internet. Since June, Jonathan Ehrlich and Mark Melville have joined our management team and James Taylor, Mark Benham and Boris Wertz have joined our Board of Directors. All of these individuals have a wealth of experience and each brings a different skill set which adds significant value to Live Current Media.”

Mr. Hampson continued, “More recently we signed an agreement with Wanderspot and entered into a binding agreement to acquire Auctomatic, both actions bring tremendous value to the Company through their technology and industry experience. The anticipated acquisition of Auctomatic brings us a talented group of individuals well versed in social media applications and commerce technology that will be evaluated for the most advantageous integration within our destinations. We are excited to have these relationships in place to drive us toward our goals in 2008.”

On the subject of top-line revenue and investing for the future, Mr. Hampson stated, “Through the end of the 2007 year, the Company was generating 90% of its revenue from one single destination: Perfume.com. Perfume.com extensively over-performed compared to last year and we are now positioned to enhance this revenue-driving destination and quickly build and monetize our other powerful destinations including sites in the travel, sports, and health and beauty segments. The opportunity presented by scaling from focusing on one primary destination to building out many subject-specific, consumer-facing sites brings a reality to the strategy that we have put in place.”

Full Year 2007 Financial Results

Total revenue for the year ended December 31, 2007 increased 17% to $9.1 million compared to $7.8 million for the same period in 2006¹. During the 2007 fiscal year, the Company began executing on its strategy for growth focused on building its content and commerce destinations. As such, there were no domain names sold as opposed to selling Vancouver.com and Wrestling.com for $623,800 in 2006. Ecommerce sales represented the majority of sales and increased 15% to $8.6 million in 2007 compared to $7.5 million in 2006.

Cost of sales for 2007 increased 13% to $7.0 million compared to $6.2 million in 2006. This increase is in line with the growth of sales over the same period. Gross profit for 2007 increased 24% to $2.1 million compared to $1.7 million for 2006. Gross margins for 2007 were 23% compared to 21% for 2006. In 2007, the Company was successful in providing attractive customer discounts while controlling costs.

In 2007, the Company experienced higher expenses compared to 2006. General and administrative expenses totaled $1.0 million, an increase of 83% compared to $550,110 in 2006. This increase was due to increased server hosting fees, audit and legal fees, recruiting costs to attract new management and expenditures associated with investor relations and equity financing. Management fees and employee salaries also increased year over year due to the new management team members brought on during 2007 totaling $2.0 million, an increase of 85% compared to $1.1 million in 2006. These totals include stock based compensation. The Company believes that the increase in these costs were necessary to build the appropriate corporate infrastructure to manage and service future growth and position the Company for accelerated growth in the future.

The Company also incurred various one-time costs relating to restructuring and the recruiting and relocating costs associated with attracting the new management team as well as a severance package for an outgoing senior management team member. Total other expenses for 2007 were $637,730 compared to $0 for 2006.

The Company also acquired Internet traffic by paying-for-clicks, search-engine-placements and affiliate marketing. In 2007 marketing expenses increased 141% to $817,101 compared to $339,505 in 2006. Marketing expenses will continue to grow in the future as management is focused on investing in tools and resources to drive more traffic to the key destination sites.

The Company reported a net loss for 2007 of $2.0 million or a loss of $0.11 per basic and diluted share compared to a net income of $414,437 or $0.02 per basic and diluted share for 2006. The net loss was primarily attributable to the various growth related expenses and one-time costs incurred during the year as discussed above.

From a balance sheet perspective, the Company reported total assets of $9.6 million and total liabilities of $1.9 million resulting in shareholders’ equity of $7.7 million up from $3.1 million in shareholders’ equity in 2006. The Company improved its current ratio significantly to 4.07 to 1 for the period ended December 31, 2007 compared to 2.43 to 1 for the period ended December 31, 2006. Cash and cash equivalents for the period ended December 31, 2007 totaled $7.4 million compared to $2.1 million for the same period in 2006.

¹ *COMPARATIVE FIGURES: Certain comparative figures have been reclassified in order to conform to the current year's consolidated financial statement presentation.

Fourth Quarter 2007 Financial Results

The fourth quarter of 2007 was the highest revenue quarter in the Company’s history, totaling $4 million, an increase of 24% compared to $3.2 million for the same period in 2006. This increase was primarily due to strong product sales during the holiday season from Perfume.com following the refresh to the Perfume.com site. For the fourth quarter of 2007, ecommerce sales represented 95% of revenues totaling $3.7 million compared to 98% and $3.1 million for the fourth quarter of 2006.

Cost of sales for the fourth quarter of 2007 totaled $3.2 million compared to $2.6 million for the fourth quarter of 2006, an increase of 23%, which is in line with our growth in sales over the same period. Gross profit for the fourth quarter of 2007 increased 29% to $770,799 compared to $599,068 for the same period in 2006. Gross margin for the fourth quarter of 2007 was 20% compared to a gross margin of 19% for the same period in 2006.

The Company reported a net loss of $1.3 million or a loss of $0.06 per basic and diluted share for the fourth quarter of 2007 compared to a net income of $26,157 for the fourth quarter of 2006. As we mentioned earlier, there were increased growth related expenses and one-time costs incurred during the fourth quarter which affected the net income of the Company.

Mr. Hampson continued, “We have put the majority of the re-structuring costs behind us and are now in an excellent position to capitalize on the combined experience of the new team and the incredible potential of the Company’s assets. Looking forward to 2008, we are focused on building upon the foundation we have laid out in 2007 for a rapidly scaling media business around our content and commerce destinations. Although our financial results for the fourth quarter and 2007 showed a loss, we continued to add the necessary building blocks for future success. We are encouraged by the growing sales of our flagship commerce property Perfume.com, which clearly exhibits the power of a great domain name. The new team at Live Current Media is now positioned to focus on Perfume.com as well as our other valuable real estate including Cricket.com to become the leaders in creating and monetizing next-generation consumer Internet experiences called DestinationHubs™.”

Detailed information regarding Live Current's 2007 financial results can be found in the Company's annual report on Form 10-KSB, which has been filed with the SEC and is available through the investor section of Live Current's corporate website, at http://livecurrent.com/investors.php.

About Live Current Media Inc.

Communicate.com Inc. is doing business as "Live Current Media Inc." and will seek formal shareholder approval to change its legal name to Live Current Media Inc. later in 2008.

Live Current builds, owns and operates some of the most powerful and engaging content and commerce destinations on the Internet. Through subject-specific DestinationHubs™, Live Current properties connect people to each other and to the information, brands, and products they are passionate about. Live Current has headquarters in Vancouver, Canada with a location in Seattle, WA and is publicly traded on the NASD OTCBB (CMNN). For more information, visit www.livecurrent.com.

Safe Harbor: Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Communicate.com Inc. d.b.a Live Current Media Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions; it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in economic conditions and other risks detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this press release represent the Company's views as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statements, and readers are cautioned not to place undue reliance on these forward-looking statements.

The following selected financial data was derived from the Company’s unaudited consolidated financial statements. The information set forth below should be read in conjunction with the Company’s financial statements and related notes included elsewhere in its annual report on SEC Form 10-KSB for the year ended December 31, 2007.

CONSOLIDATED STATEMENTS OF OPERATIONS
Fourth Quarters Ended December 31, 2007 and 2006

The following selected financial data was derived from the Company’s audited consolidated financial statements. The information set forth below should be read in conjunction with the Company’s financial statements and related notes included elsewhere in its annual report on SEC Form 10-KSB for the year ended December 31, 2007.

CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31, 2007 and 2006

BALANCE SHEET
As at December 31, 2007 and 2006

Company Contact:
Live Current Media Inc.
Adam Rabiner
Director, Investor Relations
(604) 453-4875 or 1-866-898-4354
adam@livecurrent.com
or
Investor Contact:
Alliance Advisors, LLC
Mark McPartland
Vice President
(910) 221-1827
markmcp@allianceadvisors.net
or
Media Contact:
Live Current Media Inc.
Becky Porter
Director, Corporate Communications
(206) 713-7959
becky@livecurrent.com