Positive Trading Update from Lombard Risk on LSE

London, UK - 2 March 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 ending 31st March 2011.

The board is pleased to announce that trading during the first ten months of the financial year to 31st March 2011 has been positive and the company is currently trading in line with market revenue and earnings expectations for the full financial year.

Significant deals have been won in the last three months:-

• Another large German bank bought COLLINE to automate its repos, OTC and stock lending collateral management and risk mitigation by consolidating multiple asset classes into a single workflow

• A European financial institution replaced a vendor system with (STB)-REPORTER to provide regulatory reporting for its Singapore and Hong Kong branches, both of which are experiencing new and more complex regulatory demands.

Overall Lombard Risk has signed in excess of 30 contracts in the UK for its liquidity regulatory solution - a total believed by the board to be “well ahead of the number closed by any competitor”.

The Lombard Risk liquidity solution meets the FSA’s latest regulations which require the results of stress tests to be included in the reports; a ‘new’ element of regulatory reporting resulting from the financial crisis. This is achieved with a combination of (STB)-REPORTER (for regulatory reporting) and LISA (for scenario analysis and stress testing).

John Wisbey, CEO of Lombard Risk says: "The company has ambitious growth plans for the next few years which are backed up 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 Lombard Risk has a good opportunity from 2012 onwards to benefit from
mandatory expenditure on regulation including Basel III and Solvency 2."

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