LOM 2006 Half Year Financial Results

Hamilton, Bermuda, July 25, 2006 -- To our Shareholders: The first half of 2006 resulted in LOM reporting solid increases in the value areas of asset management and foreign exchange even as we continued to focus on controlling our costs through a balanced approach.

LOM's first half net earnings for 2006 increased 432% to $1,085,571 versus $251,139 for the same period in 2005.

Revenues had the following year-on-year highlights:

• Asset management revenues rose 22%, reflecting success by the Group in attracting new funds under management.
• Foreign Exchange revenues increased 234% as the Group's subsidiaries benefited from the US$ decline.
• Broking revenues fell 6.9% (to 62% of revenues).
• Net interest earnings fell slightly, by 2.4%, as a reduction in margin loans was in part mitigated by higher interest rates.
• Leasing revenues declined 40%, as we put our leasing book into run-off. We expect this business to be totally wound down by mid 2007.
• Overall revenues for the Group increased 1%.

LOM made the following progress in controlling costs:

• Operating costs for the Group, ex the commission payments that are directly related to brokerage revenue, decreased 9.3% year-on-year.
• Overall operating expenses fell 11% as a result of our decision last year to cut costs.
• Cost containment continues to be hampered by professional fees rising a further 18% to reach $1,280,778 for the first half. The bulk of these fees are legal fees, which reached $956,259, a 20% increase over the same period last year.

Management believes any further cost cuts will be very difficult to achieve as they could limit LOM's ability to undertake new initiatives.

On other financial measures:

• LOM's assets under administration rose 19% year-on-year to total $1 billion as of June 30, 2006. 
• LOM remains in a strong financial position with net equity of almost $20 million and no debt. 
• LOM holds cash and equivalents of $9.4 million, representing 47% of total equity. 
• As of June 30, 2006 LOM's book value was $3.12 per share.

Given the substantial discount of LOM's share price to its book value at the beginning of 2006 and given the level of excess capital, the Board decided in March to pay a special dividend out of retained earning of $1.00 per share to shareholders of record on March 31, 2006. Additionally LOM paid its regular dividend of $0.05 per share to shareholders of record on the May 18, 2006.

Our current share price on the Bermuda Stock Exchange is $2.55.

Given the continued discount of LOM's share price to our current and conservative book value the Company will continue to buy back shares for cancellation to a total outlay not exceeding $1,000,000. Over the first half of the year, the Company purchased for cancellation 60,900 shares.

We expect a seasonal summer slowdown in business activity in July and August. Usually we see transaction activity pick up in the last four months of the year, however this outlook is very much dependant upon the financial markets. Additionally the continuing SEC investigation of Sedona has made it very difficult for the Group to raise substantial new business.

We would like to thank our customers very much for their loyalty and continued support and our staff for all of the hard work and dedication they relentlessly exhibit in delivering excellent service and advice to our customers.

Scott Lines, CEO