Six Contract Wins

8^th January 2007

Lombard Risk Management plc

Lombard Risk Management plc, one of the fastest growing companies in the rapidly expanding area of software and independent valuation for the financial sector, announces an update on software contracts won in the last quarter of 2006. The successful negotiation of these contracts underpins the Board’s expectation of 50% organic revenue growth for the full year on a like for like basis and the significant forward momentum communicated in previous RNS announcements.

Colline Collateral Management Software

The Group’s subsidiary Lombard Risk Systems has won three contracts for its collateral management software Colline each worth in excess of GBP100,000 in their first year:

1. A major US asset management firm.
The first contract is with LaCrosse Global Fund Services, part of the Cargill group. LaCrosse has chosen Colline as part of its core outsourced services offerings. On 1st January LaCrosse, which has $6bn assets under management, will begin offering its services to third parties and Black River Asset Management will be the firm’s first client.

2. A German bank.
The second Colline contract is with Landwirtschaftliche Rentenbank, a major banking group with over Euro 77bn of assets, based in Germany..

3. A Portuguese bank
The third contract provides Colline software as a service (an ASP solution) for a Portuguese bank.

The Group can now confirm that one of the contracts in the first half of the financial year referred to in the Interim Statement and concluded in September was for Bank of New York, the world’s largest custodian bank, for use in its outsourced Derivative Margin Management Service. This has already been announced by Bank of New York itself in a press release (http://www.bankofny.com/htmlpages/npr_2006_2330.htm).
Although initially low in value, the revenue model for this deal means that the Group gains more revenue as its customer gains more clients.

In addition the Group can also confirm that the major UK energy supplier referred to in the RNS of 1st September 2006 was Centrica plc, one of the leading suppliers of energy and related services across the UK, Europe and North America, (see announcement at http://centrica-news.newslib.com/story/6765-3242767/).

Furthermore, the Group has an appreciable pipeline of deals for Colline, several of which are expected to close in the current quarter.

Demand for collateral management software is being driven by a number of factors, but principally the expansion in the use of collateral in derivative markets. This is mainly due to the wish to reduce credit risk in financial markets and free up credit lines, which in turn is linked to Basel II. Colline’s first to market web based technology and the Group’s team of ex collateral management practitioners are among the reasons why Colline is being selected as a system of choice.

STB-Reporter Regulatory Reporting Software

The group’s subsidiary STB Systems Ltd has since 1st October won three large new contracts in the UK for its STB-Reporter regulatory reporting product, together totaling in excess of GBP 300,000 in the first year. These are with:

1. A Japanese Global Financial Services firm in the UK.
The first STB-Reporter contract is with Nomura Bank International plc, a UK subsidiary of the Nomura Group.

2. A European-based private bank.
The second STB-Reporter contract is with Ansbacher & Co, a UK private bank now owned by Qatar National Bank.

3. A leading UK consumer finance firm.

The Group has an appreciable pipeline of deals for STB-Reporter including verbal confirmations of orders, several of which are expected to close in the current quarter. In addition the firm has won a number of smaller deals in the UK, the USA, the Middle East and Far East for its regulatory and anti-money laundering software.

Furthermore the Group can now confirm that one of the deals in the first half of the financial year referred to in the Interim Statement and concluded in September was an STB-Reporter contract with Teather & Greenwood, the UK stockbroker now owned by the Landsbanki Group in Iceland.

STB-Reporter enables these firms to meet their obligations for UK regulatory reporting under the FSA’s rules. Other similar deals are close to being finalised which implement both Basel II reporting and the FSA's Integrated Regulatory Reporting requirements in this area.

Lombard Risk’s position in the UK Financial Services Regulatory Market

Lombard Risk, through STB Systems, is the market leader in the U.K. Bank Regulatory Reporting market with over 140 out of 340 banks in the U.K. and several investment firms using the STB-Reporter product for regulatory reporting to the FSA.

Most of the revenue from these deals will be recognised in the current financial year.

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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