LOM (Holdings) Ltd. 2006 Shareholder Statement

Hamilton, Bermuda, April 30, 2007 - In an announcement made to the Bermuda Stock Exchange (BSX). LOM (Holdings) Limited (LOM.BH) made the following shareholder statement.

2006 was another good year for the global equity markets - Japan was up 6%, UK 11%, Germany 22%, France 17%, Canada 14%, and the US 14%. It is interesting to note that the US markets were showing negative returns during the year until late summer. A combination of the appointment of Paulson as Treasury Secretary, a pullback in energy

prices and a growing expectation that the Federal Reserve has finished raising interest rates all contributed to a rally in the later part of the year.

Growth in China has continued to underpin commodity prices. However after very strong increases in 2005, last year was a period of consolidation and correction in most commodity prices. Though strong global growth will continue to support prices, we expect that going forward the market will be far more selective as to which base metals

perform. We do however expect the precious metals sector to continue to show strong performance through the coming year.

In last year's shareholder letter we drew attention to the fact that asset prices in the Western economies are afloat on "an ocean of cheap credit".

Over the second half of 2006, the Bank of Japan, due to the sustained recovery of the Japanese economy, has moved away from its ZIRP (zero interest rate policy). After draining excess liquidity in the monetary system, the Bank of Japan raised interest rates by 0.25% in the face of opposition by the Ministry of Finance. Though a small move, we are seeing the beginning of the normalization of interest rates in Japan. We feel that in the coming year interest rates in Japan will see further small increases.

Japanese interest rates have been essentially zero for a decade and have engendered the now well recognized and widely practiced "carry trade" where funds are borrowed in Yen at low interest rates, sold into other currencies, primarily US dollars and used to invest in everything from US treasuries to real estate to private equity.

This has resulted in a global phenomenon of unusually low real borrowing costs and allowed a massive increase in asset prices.

The potential impact upon all asset classes should this carry trade reverse or rapidly unwind will be profound. This effect on the global markets may become a significant factor in the performance of global markets in late 2007 and through 2008.

LOM's profits in 2006 showed a substantive increase over the previous year.

€¢ 2006 full year profits for LOM Holdings were US$1.65 million or 26 cents per

share fully diluted.

€¢ Assets under administration grew 5.7%.

€¢ Return on equity was 8.2%

€¢ Revenues were down 1% to US$12.8 million.

€¢ Operating costs were reduced 8.5% to US$11.2 million.

The group's balance sheet remains extremely strong. Even after the special $1 dividend paid in 2006, our cash levels remain at $9.7 million or 41% of total assets.

Our asset management division continues to grow, with revenues growing 17% over the previous year.

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.

At the end of 2006 LOM's book value per share on a fully diluted basis was US$3.10.

During the year our share price on the Bermuda Stock Exchange traded between a low of $2.40 and a high of $4.50.

Our regular half yearly dividend of 5 cents per share will be paid on June 1st to shareholders of record on May 18th.

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

CEO

LOM (Holdings) Limited.