Lombard Risk Management Regulatory News (LRM)

25 February 2011

TRADING UPDATE

LONDON, UK - 25th February 2011: Lombard Risk Management plc (LSE:LRM) ("Lombard Risk"), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce an Update on Trading for the current financial year ended 31 March 2011.

The Board is pleased to announce that trading during the first ten months of the Financial Year to 31 March 2011 has been positive and the Company is currently trading in line with market revenue and earnings expectations for the full Financial Year. The sales pipeline is encouraging and, if any further deals close before the year end, performance may be materially enhanced.

Significant deals have been won in the past three months with a bank in Germany for the Colline collateral management software and with a European bank for Singapore and Hong Kong regulatory reporting. Overall the Company has signed in excess of 30 contracts in the UK for its Liquidity Regulatory software, a total believed by the Board to be well ahead of the number closed by any competitor.

Commenting on trading, John Wisbey, Chief Executive Officer, commented:

"The Company has ambitious growth plans for the next few years which are backed up for the next year or so by a strong sales pipeline and greatly strengthened sales and marketing teams. Market and regulatory developments around OTC derivatives being cleared on exchanges and consequent changes in the structure of the derivatives markets make this a time for banks and market participants to be looking at upgrading their legacy collateral systems, and we believe the Company is well positioned to take advantage of this structural change. In addition the Company has a good opportunity from 2012 onwards to benefit from mandatory expenditure on regulation including Basel 3 and Solvency 2."

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