Earn-out relating to the acquisition of STB Systems Ltd.

Lombard Risk Management plc
26th September 2006

The board of Lombard Risk Management plc is pleased to announce that, as fully anticipated in previous announcements, the second and final tranche of earn-out consideration in respect of the acquisition of STB Systems Ltd (“STB Systems”) was almost fully achieved by the vendors of STB Systems. The final earn-out payment is based on revenue and earnings achieved to 31 March 2006 and is payable wholly in new ordinary shares in the Company.

A total of 4,200,000 new ordinary shares of 0.5 pence each in the Company (“New Ordinary Shares”) will be issued to the vendors of STB Systems. This compares with a maximum achievable pay-out in the second earn-out payment of 5,000,000 shares, and means that overall the earn-out achieved was 92% of the maximum possible.

Following the issue of the New Ordinary Shares, the Company will have a total of 134,735,610 shares in issue. Application has been made for the admission of the New Ordinary Shares to trading on AIM and it is expected that admission will become effective and that dealings in the New Ordinary Shares will commence on, or shortly after 29 September 2006. The New Ordinary Shares will rank pari passu with all existing ordinary shares in the Company.

Enquiries:

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

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

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