Three Contract Wins

Lombard Risk Management plc
1st September 2006

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 contracts won in addition to those announced on 28th July 2006.

Colline Collateral Management Software
The Group has won two contracts for its collateral management software Colline:

1) A major Austrian banking group
The first Colline contract, worth in excess of GBP100,000, is with a major banking group in Austria.

2) A major UK energy supplier
The other contract provides Colline software as a service (an ASP solution) for the trading arm of a large UK energy supplier.

Furthermore, the Group is close to finalising a number of other deals for Colline.

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 and Winterflood
In addition, the Group has won a contract worth in excess of GBP100,000 for the STB-Reporter regulatory reporting product from Winterflood Securities Limited ("Winterflood"), the predominant UK market making firm. STB-Reporter enables Winterflood to meet its obligations for UK regulatory reporting under the FSA's BIPRU rules. BIPRU, the Prudential Sourcebook for banks, building societies and investment firms, is the set of regulations which implements the EU Capital Requirements Directive in the UK. The Directive applies to many other investment firms. Our contract win with Winterflood follows on from a contract we won with Charles Stanley for the same purpose. 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.

Our Position in the 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 350 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 second half of this 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

Click here to email Lombard Risk's Investor Relations team