Exercise of options and issue of equity

Lombard Risk Management plc

("Lombard Risk" or the "Company")

Exercise of share options and issue of equity

Lombard Risk Management plc, a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, announces that on 19 December 2011 it received notification to exercise options to acquire 1,055,555 ordinary shares (the "Option Shares"). The exercise price is 9p per share and the aggregate subscription price for the Option Shares has been received by the Company.

The following exercise of options is required to be disclosed since it was exercised by directors of the Company. None of the shares resulting from such option exercise by directors have been sold:

John Wisbey, Chief Executive Officer exercised options to subscribe for 555,555 ordinary shares in the Company. As a result of this exercise John Wisbey is interested in 102,195,117 ordinary shares in the Company representing 48.59% of the enlarged share capital; and

Brian Crowe, Non-Executive Director, exercised options to subscribe for 200,000 ordinary shares in the Company. As a result of this exercise Brian Crowe is interested in 5,825,000 ordinary shares representing 2.77% of the enlarged share capital.

Application will be made for the Option Shares, which will rank pari passu with the Company's existing ordinary shares in issue, to be admitted to trading on AIM ("Admission"). It is expected that Admission will be effective and that dealings in the Option Shares, together with the shares issued in respect of the acquisition by the Company of SOFGEN Holdings Limited (the "SOFGEN Shares"), further details of which are contained in the Company's announcement on 16 December 2011, will commence on or around 23 December 2011.

Following the issue of the Option Shares and the SOFGEN Shares, the enlarged issued share capital of the Company will be 210,309,897 ordinary shares. The above 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 change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

Contacts

Lombard Risk Management plc Tel: 020 7593 6700

www.lombardrisk.com

Philip Crawford, Chairman

John Wisbey, CEO [email protected]

Paul Tuson, CFO [email protected]

Allenby Capital Limited Tel: 020 3328 5656

Nominated Adviser and Broker

Brian Stockbridge/Alex Price

Threadneedle Communications Tel: 020 7653 9850

Graham Herring/Terry Garrett