LOM Announces 2005 Results in Letter to Shareholders

Hamilton, Bermuda, April 26, 2006 - LOM announces the following 2005 results to the Bermuda Stock Exchange (BSX) and its shareholders.

2005 witnessed very strong equity market advances, with most major markets enjoying significant year on year gains - Japan was up 43% in 2005, UK 17%, Germany 28%, France 24%, Canada 23% - the dramatic exception to this global phenomenon was the performance of the United States which achieved 0% during the year. Despite strong growth in US corporate profits, the effect of rising interest rates, concerns over US federal budget imbalances and a hostile environment for foreign capital all negatively impacted US investment returns. This relative underperformance will most likely continue. 

Last year we noted that China was cementing its place as "the workshop of the world", that China and India were reaching a "tipping point" where their demand for consumer goods would explode, with a consequent long term impact on commodity prices. Since this time last year copper prices have risen 109%, aluminium 56%, nickel 22%, lead 34%, zinc 156% and crude oil 34%.  Though we believe these current commodity prices are very overbought and that a correction is overdue, longer term the forces upon these markets will continue to keep commodity prices high. We believe that the next effect of this paradigm shift in the global economic order will be felt as domestic demand in China becomes a more important driver of its economic growth. This will negatively impact the growth of their trade balance and most importantly their demand for foreign (specifically US dollar) assets. This, in turn, will see real interest rates return to historically normal levels. Higher real interest rates in the western world will, in turn, have an impact on asset valuations, which for six years have been afloat on an ocean of cheap credit.

As an international financial services company offering clients access to all major markets, these global trends have had an effect on LOM. There were several areas where the durability of the organization shone through:

• On March 21^st 2006 LOM's subsidiaries' assets under administration exceeded the US$1 billion mark. This demonstrates that most customers and employees remain very loyal to the organization.

• Overall expenses for the group fell 20% year on year, to US$12.2 million.

• In November 2005 the Bermuda Monetary Authority concluded their Section 19 inspection of the transaction under investigation by the SEC. The BMA initiated the inspection in June of 2003 due to allegations made to them by the SEC.

As outlined in the 2005 half yearly financial results letter, we substantively withdrew from the US OTC Bulletin board market, impacting the part of our customer base that focused on that market. Additionally the negative publicity surrounding the SEC's investigation of a transaction in 2003 has resulted in some loss of business. This ongoing investigation has limited the group's ability to attract new business.

Thus we are especially pleased that despite this withdrawal of assets, the LOM's subsidiaries' overall assets under administration grew over the year - as of year end 2005 customer assets totaled US$932 million, up almost 8% over the previous year, and currently stand at over US$1 billion.

In spite of many challenges through 2005, LOM (Holdings) Limited managed to achieve a modest net profit of US$725,016 or 11 cents per share in 2005, a 3% return on capital employed. Revenues for the group declined 26% over the previous year to US$12.9 million. Brokerage fees declined 35%, while other divisions reported little or no revenue growth.

In June 2005 management anticipated this revenue slowdown and set a series of targets for cost cuts. I am pleased to say that those targets were met and exceeded through the hard work of all the staff. Overall expenses for the group fell 20% year on year to US$12.2 million. As many of the cost savings were initiated in the second half of the year we expect these cost savings to continue in 2006.

High professional fees, specifically legal fees, continued to impact LOM's performance in 2005. On July 1^st 2005, Brian Lines, the President of LOM (Holdings) Limited, retired from the company and all of its subsidiaries in order to assist in obtaining a settlement with the SEC. As part of his severance and non-compete agreement, Brian Lines will receive a severance package through June 2010, which has been accounted for in LOM's financial plans moving forward.

Going forward, we will continue to seek cost efficiencies where we can. Building the company's assets and revenue lines will continue to present significant challenges. However we will continue to focus on winning new customers, assets and keeping our performance standards at "best in market" levels.

The strength of the global markets, especially the commodity markets, has had a very positive effect on our revenues during the first part of 2006. However, we expect that markets are due a correction and expect to witness a slowdown in customer activity this summer.

At the end of 2005 LOM (Holdings) Limited's balance sheet had shareholders equity of US$25.3 million of which 59% was in cash. At year-end, our book value per share was US$4.03 and during 2005 our share price on the Bermuda Stock Exchange has traded between a high of $3.05 and a low of $2.80.

In the year we repurchased 127,000 shares of stock for cancellation and since the end of the year the company has repurchased an additional 60,900 shares. Given the level of cash on the balance sheet, the undervalued share price and the non-requirement of the group to use this capital, the Board paid $1 per share by way of special dividend out of accumulated earnings in April 2006. Our regular half yearly dividend of 5 cents per share will be paid on June 1^st to shareholders of record on May 18^th.

LOM (Holdings) Limited.