Acquisition

Embargo until 07:00 on Friday 16 December 2011

Lombard Risk Management plc

("Lombard Risk" or the "Company")

Lombard Risk acquires regulatory reporting business of SOFGEN Holdings Limited ("SOFGEN")

London, United Kingdom (the "UK")―16 December 2011: Lombard Risk Management plc (AIM: LRM), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, announces that on 15 December 2011 it signed an agreement to acquire the regulatory reporting business of SOFGEN for a total consideration of US$4,250,000 payable in a combination of cash, loan notes and equity (the "Transaction"). The business has proforma profits in the region of $0.4m to $0.5m per annum and the Board of directors of the Company anticipates appreciable revenue synergies over and above the sum of the two businesses at present. The equity component of the Transaction will be satisfied by SOFGEN subscribing for 2,327,556 new shares of 0.5 of one penny each in the capital of Lombard Risk ("Shares") at 11.75p per Share, the price prevailing on the date on which a letter of intent was signed. Application has been made for the admission of these new shares to AIM and dealings are expected to commence on Thursday 22 December. Following the Transaction the number of Shares in issue will increase from 206,926,786 to 209,254,342.

The main part of the business acquired, which in the past was known in the United States (the "US") regulatory market as IDOM USA, is the US and Canada regulatory reporting product Reg-Reporter®. Reg-Reporter®has a strong client base in North America including leading banks such as Bank of America and Royal Bank of Canada.

The directors believe that the Transaction will make Lombard Risk the leading provider of regulatory reporting to foreign banks in the US and the third largest provider (as measured by assets reported on, not number of institutions) of regulatory reporting to domestic banks in the US after FIS and Jack Henry and with a bigger presence than all of Lombard Risk's international competitors combined.

Lombard Risk already has a significant business in regulatory reporting through its existing REPORTER product, which is used globally for regulatory reporting including in the US. The combined business now has over 250 regulatory reporting clients for bank regulatory reporting around the World. Lombard Risk has the largest market share of any regulatory reporting product used by banks in the UK with around 130 UK clients. As well as the UK and the Americas, Lombard Risk also has significant coverage of Asia Pacific markets with regulatory reporting solutions in use in Singapore, Hong Kong, Japan, Indonesia, Thailand and other Asian countries. Lombard Risk recently announced a contract win for Chinese regulatory reporting and has Indian and Korean regulatory reporting under development. Lombard Risk also has products live for liquidity reporting and regulatory stress testing and is becoming a vendor of choice among leading banks for its COLLINE® collateral management and clearing product. Regulatory initiatives such as Dodd-Frank have already won business for the Company.

Commenting on the Transaction, John Wisbey, CEO of Lombard Risk, said:

"This is astrategic breakthrough for us, as it gives us critical mass in the important North American marketplace, both for foreign and domestic banks in the US. We already had this for collateral management but we now have it for regulatory reporting. The Reg-Reporter® business and its management are well respected in the market and they have built up an impressive and loyal client base. As the market moves away from having multiple suppliers in different countries, this acquisition will allow us to serve our global clients better with more ability to conclude deals in multiple countries and continents. We understand this business and its business model well, so we are absolutely "sticking to the knitting" with this Transaction."

Vincent Raniere, now Managing Director and Head of Regulatory―Americas for Lombard Risk, commented:

"My team and I are very pleased for Reg-Reporter®to have the backing of a global software company that well understands regulatory reporting. Our technology team will have access to a deeper technology organisation, which is already experienced in regulatory requirements, web technology, XBRL (eXtensible Business Reporting Language),workflow and the requirements for fast and scalable performance, while at the same time we will have the ability to extend our international reach and to offer more international regulatory services to our US clients".

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