Lombard Risk Management Plc ('the Company')
29th November 2004

The Company announces that it was informed by AMF (NBF) Holdings Inc (“AMF”) that AMF had acquired 12,222,222 ordinary shares of 0.5p each in the Company on 29th November 2004 at 9p each and now has an interest in 10.5% of the issued share capital of the Company. This stake was acquired through a placing of new ordinary shares. Application has been made for admission of the new ordinary shares to the Alternative Investment market of the London Stock Exchange plc (“AIM”) and dealings are expected to commence on 2nd December 2004.

AMF are an affiliate of Putnam Lovell NBF Securities Inc. and a subsidiary of National Bank of Canada, whose offices are located at 600 de la Gauchetiere Street West, Montreal, Quebec.

Putnam Lovell NBF will manage the investment, and Mr Daniel H. Kochav, Managing Director of Alternative Investments at Putnam Lovell NBF, has been invited to join the board of Lombard Risk as a Non-Executive director from the date of admission of the new ordinary shares, at which point a separate announcement will be made.

This investment follows Lombard Risk’s successful IPO on AIM in September 2004 (ticker symbol: LRM). Lombard Risk is a leading provider of software, data and independent valuation services to banks and hedge funds, with a special focus on valuation and risk management of derivative portfolios. The funds will be used to drive sales and marketing and further the development of the Company’s products and services.

"As institutional investors boost their allocations to hedge funds, there is an increasing demand for outsourcing solutions including transparency and risk measurement, and for independent valuations of the investments made by hedge funds,” said Daniel H. Kochav. “The experience Lombard Risk brings to this process, together with its existing high quality customer base, stands to make the company a clear leader in this area."

"It is particularly pleasing to receive an investment of this size from such a well- regarded institution that is also very knowledgeable about the hedge fund space," said John Wisbey, Chairman, CEO and founder of Lombard Risk. "We warmly welcome Dan Kochav to our board as a non-executive director; his financial market background and involvement over the last few years in the alternative investment and hedge fund markets will complement the skills of our existing board members and particularly assist our business development in North America."

National Bank Financial (NBF)
National Bank Financial is a leading Canadian full service investment bank, with origins dating back to 1902, and is a subsidiary of National Bank of Canada. National Bank Financial has over 3,100 employees, with offices and operations in Montreal, Toronto, Vancouver, Calgary, New York, San Francisco, Boston, Los Angeles, London, England and Geneva, Switzerland. The firm offers financial services and products to private and publicly owned corporations and institutional investors, individual investors and government agencies. National Bank Financial has over 100 retail offices across Canada and is the dominant provider of third party brokerage services in the country.

Putnam Lovell NBF Securities
Putnam Lovell NBF Securities Inc. ("Putnam Lovell NBF") is an investment banking firm focused on the financial services industry. It offers merger and acquisition advice, equity capital markets, fixed income trading, and general corporate finance advisory services. It serves a global client base comprised of diversified financial services firms, institutional asset managers, mutual fund managers, banks, broker- dealers, insurers, and financial technology firms. Putnam Lovell NBF was founded in 1987 and operates from offices in Boston, London, New York, and San Francisco. Putnam Lovell NBF Securities Inc., member NASD/SIPC, is a subsidiary of National Bank Financial Inc.

Lombard Risk
Lombard Risk is an established provider of financial trading and risk management software, data and independent valuation services. The Company, which was founded by John Wisbey, the Chairman and CEO, started trading in 1989. Since then it has worked with over 50 of the top 100 banks worldwide. The main customer base has historically been banking, but in recent times the Company has made significant headway in the hedge fund industry and with other "buy side" firms.

The Company's initial product was Oberon®, an advanced trading system for fixed income and foreign exchange instruments. In 1999, the Company entered the credit derivatives market with the launch of Valuspread®, a managed service which enables active market makers in the credit derivative markets to share information on pricing for credit default swaps and estimates of recovery rates for price verification purposes. Lombard Risk has since expanded the market for this product by licensing the data to banks and other financial institutions. In addition, the Company’s Independent Valuation Services initiative uses a combination of its software and data to provide clients with a derivative position valuation service.

Since 2000, the Company has invested heavily in developing a new software product, Firmament®, which provides the platform upon which an integrated trading and risk management system is built. The first trading module developed, Firmament Credit Trading, provides trading and management functionality for credit derivative traders and their associated middle offices. Firmament Equity Trading, servicing the equity markets with similar functionality has also recently been developed and was delivered to its first customer in June 2004. A further trading module, Firmament Fixed Income, is in development. In the risk management area, Firmament modules for collateral management and netting have also been developed.

In recognition of its global success, Lombard Risk was awarded the prestigious Queen's Award for Export Achievement in 1994 and again in 1996.

The Company concluded its IPO on AIM in September 2004.

Following the AMF acquisition, the Company announces the following interests in the current issued share capital of the Company:

Enquiries:

Lombard Risk Management plc:
John Wisbey, Chairman and CEO
Tel : +44 (0)20 7384 5000

Click here to email Lombard Risk's Investor Relations team

Noble & Company Ltd:
Matthew Hall
Tel: +44 (0)20 7763 2200