TORRANCE, Calif. January 17, 2006 - LiveOffice (www.liveoffice.com) today announced record growth in the number of hedge funds adopting its AdvisorMail HF (www.advisormail.net) email archiving and compliance solution. The company's fourth quarter results reveal a 70% increase in the number of hedge funds using AdvisorMail HF to meet the Securities and Exchange Commission's (SEC) electronic recordkeeping requirements surrounding email and instant message (IM) records. LiveOffice attributes the heightened demand for AdvisorMail HF to the high number of fund firms preparing to register with the Securities and Exchange Commission under Rule 203(b)(3)-2, which requires hedge funds to submit Form ADV by February 1.

As part of the registration process, hedge fund firms are required to archive emails and IMs in a tamper-proof format. In addition, the SEC has indicated that it does have the right to inspect any electronic record, such as email, whether it is relevant to a trade or not. LiveOffice's AdvisorMail HF is one of the safest and most cost effective ways for firms to meet these specific and critical regulatory requirements. The system is also able to electronically monitor, store and retrieve all inbound and outbound emails, saving compliance personnel hours of time by automating the entire review and random sampling process. AdvisorMail HF makes message management simple with value-added features including:

• Seamless capturing of all emails, attachments and IMs into a secure, online and easily searchable repository
• Automatic screening of messages for potential regulatory violations against the built-in eAuditor+ lexicon
• Easy separation of Attorney-Client Privilege communications into an assigned folder viewable only by approved personnel

"Recent history indicates that SEC auditors want registered firms to present email and instant messages to them in a highly organized, tamper-proof format and that failure to do so can be costly. From the growth of AdvisorMail HF, it is clear that fund firms believe history can repeat itself and are therefore taking the management of their email and instant message communications seriously," said Steve Uhring, vice president of sales and marketing for LiveOffice "The good news is that while it may take months to hire a chief compliance officer and put the proper regulatory policies in place, firms can have AdvisorMail HF up and running in their office in as little as 7 days."

Pricing
Pricing for the AdvisorMail product suite, which enables automated monitoring, archiving and retrieval of emails and instant messages, begins at approximately $200 per month.

LiveOffice’s AdvisorMail provides industry-leading email archiving, instant message archiving, anti-spam, antivirus, compliance and eDiscovery solutions to financial services firms of all sizes. These services ensure the integrity of emails and IMs, simplify the discovery process, and help companies protect themselves against the risk and expense of lost or misplaced electronic messages. LiveOffice also helps organizations comply with statutory, regulatory (SEC, NASD), legal and industry-specific mandates. Founded in 1998, the company serves a premier roster of clients including Fortune 500 companies, processes and protects millions of messages each day, and has a customer retention rate of over 98%. For more information, contact 1.800.251.3863 or visit www.advisormail.net.