Contract with leading UK building society

PRESS RELEASE

10 January 2013

Lombard Risk Management plc

("Lombard Risk" or "The Company")

Leading UK building society selects Lombard Risk REPORTER to meet regulatory obligations

Lombard RiskManagement plc, (LSE: LRM) a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, is pleased to announce that one of the UK's leading building societies has selected Lombard Risk REPORTER to create a consolidated regulatory and MIS reporting solution.

REPORTER is an advanced fully scalable regulatory compliance system for branch or head office use that offers global coverage.

John Wisbey, Chief Executive Officer, Lombard Risk says: "Selection of Lombard Risk by this well-known building society underlines our position as the 'vendor-of-choice' in this sector. We have both the software and the experience to automate regulatory reporting for major building societies. This includes computation and reporting for retail, mortgage and treasury operations, and covers any aspect of the FSA's and Bank of England's requirements, ranging from statistical reporting to the liquidity regime and also mortgage reporting. We are delighted to welcome this important building society to our extensive client community."

After a thorough selection process the building society, one of the largest in the UK, identified Lombard Risk as:

·; Specialists in the regulatory environment with proven experience of delivering to high volume retail firms

·; Offering a "tried & tested" system with a significant and satisfied user base - and

·; Providing a reliable multi-discipline solution for regulatory calculation, reporting (including MIS) and electronic submission.

Building societies are regulated by the Financial Services Authority (FSA), under the Financial Services and Markets Act 2000. The role of the regulator is to ensure societies are run in a safe and prudent manner.  The Lombard Risk REPORTER solution was selected by the building society to enhance all of their existing and new reporting processes - including the new EBA Common Reporting COREP regulations, including Large Exposures, Liquidity Coverage and Net Stable Funding, as well as existing FSA and Bank of England reporting.

The society also recognised the value of the regulatory update service provided by Lombard Risk, which ensures that REPORTER is maintained to meet the latest regulatory requirements now and as they arise, keeping the firm compliant. This service is provided by the team of regulatory business matter experts at Lombard Risk and included in the license agreement.

Robert Markham, Head of Sales, Regulatory Compliance - EMEA, Lombard Risk commented: "Rapid implementation and supporting client referenceability are key selection criteria to successful financial services institutions and once more we are delighted to be selected ahead of other providers in this space."

Ends

Contact us

Visit the Media Centre on the Lombard Risk website and/or contact:

About Lombard Risk - www.lombardrisk.com (LSE: LRM)

Lombard Risk is a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions - enabling firms in the financial services industry to significantly improve their approach to managing the risk in their businesses.

Founded in 1989 and headquartered in London, Lombard Risk has offices in New York and New Jersey in the US; Hong Kong, Mumbai, Shanghai, Singapore and Tokyo in Asia Pacific, and service centres in Atlanta, Cape Town, Luxembourg and Miami.

Our clients include banking businesses - over 30 of the world's "Top 50" financial institutions - almost half of the banks operating in the UK, as well as investment firms, asset managers, hedge funds, fund administrators, insurance firms and large corporations worldwide.

Managing collateralised trading | Enabling regulatory compliancewith clarity and confidence in the 'new world'

The Lombard Risk solution suite is developed and supported by an extensive team of risk, regulatory and financial experts and includes:

REPORTER - global regulatory reporting. Fully scalable regulatory compliance solution for branch or head office, with global coverage. Fully supports key supervisory computations and integrates with LISA for stress testing and REPORTER MIS for ad-hoc and management reporting. Straightforward and streamlined integration to multiple source systems; built in reconciliation and trends and variance reports.

REG-Reporter® - US and Canadian regulatory reporting.  A regulatory solution addressing financial reporting requirements by automating compliance with the mandated reports to all US regulatory agencies and the Office for the Superintendent of Financial Institutions Canada (OSFI).

LISA® - scenario analysis and stress testing. LISA satisfies the latest liquidity risk management requirements and supports growing regulatory demands for timely and reliable information.

REPORTER MIS - business and management reporting. A flexible and easy-to-use module for reporting across the Lombard Risk product range AND with external sources. Provides valuable business intelligence by combining risk and regulatory information in reports or on-screen dashboards, enabling well-informed business decisions to be made with confidence.

ComplianceASSESSORTM - addressing regulatory risk. A compliance management tool, designed to enable firms to monitor and identify the state of compliance against any number of regulations, across an entire business.

COLLINE® - collateral management and clearing.  Designed by experienced business practitioners for end-to-end, cross-product (OTC derivatives, repo and sec lending) collateral management. COLLINE provides a consolidated solution for mitigating credit risk while satisfying the growing demand for multiple/global entities, cross-product margining, clearing, optimisation, master netting, MIS reporting, dispute management and electronic messaging.

REFORM™ - pre- and post-trade solutions and transactional reporting for derivatives reform initiatives such as Dodd-Frankand EMIR. Other modules of the REFORM engine provide connectivity and message transformation e.g. enabling COLLINE to connect to exchanges and messaging systems.

The Lombard Risk software solution suite also includes OBERON®trade capture and valuation and FIRMAMENT®credit and equity valuation.