Lombard Risk Management Regulatory News (LRM)

12 July 2013

Lombard Risk Management plc

("Lombard Risk" or "the Company")

Placing and Subscription of New Ordinary Shares to raise approximately £2.6 million

Lombard Risk Management plc (LSE:LRM), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce that it has placed 19,090,909 new ordinary shares (the "Placing Shares") at 11 pence per share, with certain institutional and other investors (the "Placing"). The Company has also issued a further 4,545,454 new ordinary shares (the "Subscription Shares") to Mr John McCormick, the prospective new director of the Company, also at 11 pence per share (the "Subscription"). Total proceeds from the Placing and the Subscription will be approximately £2.6m (before expenses).

The Placing has been undertaken by Charles Stanley Securities and Hardman & Co to satisfy strong investor demand from institutional and retail investors, following the announcement on 14 May 2013 of the Company's final results for the twelve months ended 31 March 2013 and a subsequent investor road show undertaken by the Company. The Placing was oversubscribed.

The Company announced on 8 July 2013 that John McCormick, who is currently Chairman and CEO of Royal Bank of Scotland in Asia Pacific, is expected to join the Lombard Risk Board in October 2013. Mr McCormick has subscribed for 4,545,454 new ordinary shares at 11 pence per share, and on the same terms as the Placing Shares.

The net proceeds of the Placing and the Subscription will be used to accelerate the development of the next generation of the Company's regulatory reporting products, to supplement the Company's working capital requirements and to strengthen further the Company's balance sheet.

The Placing price and Subscription price of 11 pence per new ordinary share represents a discount of approximately 6.4 per cent. to the Company's closing mid-market price on 11 July 2013 of 11.75 pence, being the last practicable date prior to the announcement of the Placing and Subscription.

Application has been made for the 23,636,363 new ordinary shares to be admitted to trading on AIM ("Admission"). The Placing and the Subscription are conditional on Admission which is expected to take place on 17 July 2013. The Placing Shares and the Subscription Shares will rank pari passu with the existing ordinary shares of the Company, save that they will not rank for payment of the final dividend of 0.04 pence per share, which was declared ex-dividend on 10 July 2013. Following this allotment, the total issued share capital of the Company will increase to 256,286,260 ordinary shares. The Company currently holds 234 Ordinary Shares in treasury, which do not carry voting rights, and therefore the total number of voting rights in Lombard Risk is 256,286,026. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a charge to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

John Wisbey, Chief Executive Officer of Lombard Risk, commented: "The Board is delighted to have received investment both from new investors, who we welcome as shareholders in Lombard Risk as well as further support from some existing shareholders. This placement has seen us continuing to widen our shareholder base as part of the continuous development of the Group's growth strategy."

For further information, please contact:

Lombard Risk Management plc Tel: 020 7593 6700

Philip Crawford, Chairman Philip.crawford@lombardrisk.com

John Wisbey, CEO john.wisbey@lombardrisk.com

Paul Tuson, CFO paul.tuson@lombardrisk.com

Charles Stanley Securities Tel: 020 7149 6000

Nominated Adviser and Broker

Russell Cook / Carl Holmes

Newgate Threadneedle Tel: 020 7653 9850

Graham Herring / Robyn McConnachie