[October 13, 2000]

LivePerson Acquires HumanClick

LivePerson, Inc. (Nasdaq: LPSN), a leading Application Service Provider (ASP) of technology that enables real-time sales and customer service interaction over the Internet, has acquired Israel-based HumanClick, Ltd., which provides real-time, online customer service applications to more than 100,000 small and mid-sized businesses around the world.

The acquisition solidifies LivePerson's position as a global leader in delivering real-time eCRM solutions via an ASP model to businesses operating online.

"Our acquisition of HumanClick provides us with significant growth opportunities, and enables us to open new sales channels," said Robert LoCascio, president and CEO of LivePerson. "We will leverage HumanClick's self-service capability to expand the reach of our technology via third-party distribution channels and partnerships. Much like AOL/ICQ's leadership position in instant messaging among individuals, the addition of HumanClick will assist LivePerson in becoming the standard real-time communication solution for businesses."

Under the terms of the agreement, LivePerson will issue up to 4.5 million shares in exchange for all outstanding shares of HumanClick, and will assume all outstanding options and warrants. The acquisition will be accounted for as a purchase. HumanClick will become a wholly-owned subsidiary of LivePerson.

With over 100,000 customers, HumanClick has substantial market share in the small and mid-sized business market with its real-time solution. Through this acquisition, LivePerson solidifies its leadership position in this market, and joins leading international technology companies with a development presence in Israel's high-growth technology hub.

In addition, LivePerson will gain opportunities to upgrade HumanClick's larger clients to LivePerson's comprehensive suite of eCRM solutions. Leveraging their ASP platforms, the combined companies will continue to provide cost-effective eCRM solutions that are easy to implement, and require no hardware installation, internal IT resources or ongoing maintenance.

"We are pleased to join forces with LivePerson," said Eitan Ron, co-founder and CEO of HumanClick. "LivePerson is a leading ASP delivering real-time eCRM solutions and we are excited to be a part of it. Through our free distribution strategy, HumanClick's vision has been to empower entrepreneurs and small businesses with real-time customer service. With LivePerson's presence in the mid- to large-sized market, we can deliver reliable and scalable solutions via an ASP model to the full spectrum of companies conducting business online."

Eitan Ron and Tal Golberg, co-founders of HumanClick, will remain as the principal senior executives, overseeing HumanClick operations at their present location in Israel.

With LivePerson's over 800 clients in 30 countries and HumanClick's over 100,000 registered users in 60 countries, the combined entity will offer a global solution that is served via the Internet. The combined entity will provide real-time customer service technology in 15 languages, including both simplified and traditional Chinese, Danish, Dutch, English, Finnish, French, German, Hebrew, Italian, Korean, Japanese, Norwegian, Portuguese, Spanish and Swedish.

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