A. RECENT DEVELOPMENTS

NetLive Communications, Inc. (the "Company" or "NetLive"), a development stage company, was incorporated on August 23, 1995 in the State of Delaware. As part of its marketing efforts in the fiscal year ended March 31, 1998, the Company approached a number of potential end users to enter into agreements to beta test the development version of the Company's Internet call center software technology, to fund custom features as required, and to subsequently purchase commercial versions of the Company's products, when and if successfully developed. These efforts, like the Company's efforts to establish strategic partnerships for joint product distribution,...