Trading Update

Lombard Risk Management plc
("Lombard Risk" or the "Company")
31st October 2008

Lombard Risk Management plc, a rapidly growing UK AIM quoted software company and the global number 2 in bank regulatory reporting software and collateral management software, announces that at today's Annual General Meeting, John Wisbey, Chairman and CEO, gave the following update on the effects on the Company of recent developments in the global banking industry. Mr. Wisbey reported that the recent turmoil in the banking industry is likely to result in a negligible reduction in Lombard Risk's revenues for this year and a minimal reduction in revenues for the year to March 2010.

Mr. Wisbey reported that an analysis had been carried out of the effect and likely effect on Lombard Risk's overall business of the various announced changes in ownership, capital injection or credit events at the following twenty seven institutions:

AIG
Alliance & Leicester
Barclays
Bear Stearns
Bradford & Bingley
Chelsea Building Society
Cheshire Building Society
Dexia
Dresdner Bank
Fannie Mae
Fortis
Freddie Mac
Glitnir Bank
HBOS
Hypo Real Estate
IKB
Kaupthing Bank
Landesbank Sachsen
Landsbanki
Lehman Brothers
Merrill Lynch
Morgan Stanley
Northern Rock
RBS
UBS
Wachovia
Washington Mutual

Seven of the above twenty seven institutions are current customers of Lombard Risk and several others are realistic prospects. The board estimates the total direct economic effect of the ownership changes or other events at these institutions to be under £50,000 for the current financial year ending 31 March 2009 and likely to be less than £150,000 in respect of the year to 31 March 2010.

The board anticipates additional net upside opportunities from one or more of the above institutions which would not have materialised had their financial position remained unresolved.

Mr. Wisbey reported that with the credit crunch far from over, the board expected further consolidation or failure of more financial institutions over the next few months. For those institutions that survive, the board has seen strong demand for Lombard Risk's products and services and believes that this will remain the case given the "need to have" nature of Lombard Risk's Regulatory Compliance STB-Reporter software and credit risk reduction tools such as Lombard Risk's collateral management software product Colline®.

Mr. Wisbey added that in the recent Chairman's statement in the Annual Report for the year ended 31 March 2008 he had noted that the board had lowered its own revenue forecasts slightly in view of the uncertainty over the viability or independence of banks generally, and had taken steps to prune or defer expenditure. This remained a prudent course of action to take even though the effect of the credit crunch on Lombard Risk to date has been relatively insignificant.

Enquiries:

John Wisbey
Chairman and CEO
Tel : +44 (0)20 7384 5000

Noble & Company (Nominated Advisors)
Matthew Hall, Director
Tel: +44 20 7763 2200

Bishopsgate Communications Ltd (Financial PR)
Jenni Herbert
Tel: +44 20 7562 3350

Click here to email Lombard Risk's Investor Relations team