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LOM Offshore Financial Services Reports 46% Increase in Profits for 2007

Hamilton, Bermuda (PRWEB) April 20, 2008 -- LOM (Holdings) Limited (BSX: LOM) today reported that net earnings for the year ended December 31, 2007 rose nearly 50% as compared to year end 2006, to $2.5 million or $0.38 per diluted share. Diluted earnings per share were $0.38 and $0.26 for the year 2007 and 2006, respectively. Total revenue was up 29% to $16.5 million while expansion caused operating costs to rise by 26%, to $14 million.

"LOM had a very good year and these results reinforce our confidence in LOM's ability to perform well in a dynamic global economy. Our performance is a tribute to the way we have repositioned our company over the past several years, as well as the hard work of our employees," said Scott Lines, LOM president and chief executive officer.

The group's overall balance sheet remains extremely strong with cash levels at $8.5 million or 33% of total assets. In addition, the balance sheet remains debt free.

The firm also confirmed its semiannual $0.07 dividend which represents a 40% increase from the same period in 2007.

More information can be found in the shareholders letter, appended below, and the unaudited financial results are available on the web (http://www.lom.com/financial-statements).

2007 Letter to Shareholders

April 16, 2008

Dear shareholder:

2007 proved a very difficult environment for global equity markets. The year witnessed rising inflation, strong commodity prices, the implosion of the US housing market and the knock on effects to debt instruments associated with that sector. Returns were modest in nominal terms and flat or negative in inflation adjusted terms. The US market rose 3.6%, UK 3.8%, Germany 3.5%, France 1.6% and Japan fell 10.5%. The strongest performing major market was Canada which rose 7.3% on the back of strong oil and commodity prices. Since the end of 2007 most global equity markets have suffered double digit percentage declines.

In last year's shareholder letter we outlined our view that the potential for the unwinding of the Yen carry trade would become a significant factor in the performance of global markets in late 2007 and through 2008. Indeed, such is happening, and as a result asset valuations across the economy and around the world are under review. A year ago we feared that the unusually low real borrowing costs had allowed a massive increase in asset prices. Asset prices were afloat on an ocean of cheap credit and that tide has turned. Despite swinging cuts to short term interest rates by the US Federal Reserve aimed at avoiding a collapse in the US housing market and financial system, the price of "risk" continues to rise.

The US$ has depreciated substantially over the year. During the first quarter of this year that decline has accelerated to an extent that threatens the global finance system. Despite the Dollar's waning influence, over 80% of all global financial transactions are priced in US$. Any further acceleration in the Dollar's decline would threaten to undermine global trade. Additionally, the weakness of the Dollar has caused funds to flow into hard and soft commodities resulting in dramatic increases in basis foodstuff prices. This, in turn, is pushing headline inflation numbers up around the globe and impeding the central bank's ability to reduce interest rates to ward off economic weakness.

Thus, we have reached a point where it has become in every major country's interest to stabilize the US$. We believe that the rest of this year will see increasing co-ordinated government and central bank currency intervention aimed at a US$ rally.

Furthermore, the toxic mortgage and asset-backed paper that is causing such problems in the US banking and broking sectors is a global virus infecting all major financial institutions. Global credit contraction will impact growth in all major economies and we expect to witness interest rate cuts in the UK and Europe as a result.

The massive central bank injection of liquidity into the world's global financial system will prove positive for equities for the balance of the year. However, over the longer term this liquidity boost will cause the emergence of significant inflationary issues that will need to be addressed in 2009 and beyond.

LOM's profits in 2007 showed substantial increase over 2006.

2007 full year profits for LOM Holdings were US$2.48 million or 38 cents per share

Assets under administration grew 15% to $1.134 billion

Return on equity was 11.3%

Revenues were up 29% to US$16.5 million

Operating costs rose 26% to US$14 million

The group's balance sheet remains extremely strong with our cash levels at $8.5 million or 33% of total assets.

During the course of 2008 LOM will be implementing a new back office and client accounting system that will enable us to bring additional services to our customers. Thus, for the balance of 2008 we will find it very difficult to reduce costs to any meaningful extent. Additionally, the group will continue to face high professional fees due to legal costs related to our single ongoing litigation matter.

LOM's focus will continue to be to win new customers and assets and keep our performance standards at "best in market" levels.

At the end of 2007 LOM's book value per share on a fully diluted basis was US$3.41. During the year our share price on the Bermuda Stock Exchange traded between a low of $3.25 and a high of $4.00.

Our regular half yearly dividend of 7 cents per share will be paid on June 1st to shareholders of record on May 16th. Our annualized payout this year is 14 cents, a 16% increase on our previous annual dividend of 12 cents per share.

On behalf of the Board of Directors I would like to extend our thanks to our customers, employees and shareholders for their support and loyalty over the past year.

Scott Lines (http://www.lom.com/scott-lines)

CEO

LOM (Holdings) Limited

About LOM

The LOM Group is an offshore international financial services company (http://www.lom.com), providing a complete range of investment services and products through its regulated subsidiaries in Bermuda, Bahamas and Grand Cayman and a marketing office in London, England. In business for over 15 years, LOM today has over $1 billion in client assets under administration and provides brokerage, asset management, and corporate finance services to its primarily high net-worth individual and institutional customers in over 75 countries around the world. The parent company, LOM (Holdings) Limited, is publicly listed on the Bermuda Stock Exchange (symbol LOM BH). The consolidated group is debt-free and has shareholder's equity of over $25 million.

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