LOM (Holdings) Limited Release 2010 Full Year Results

Hamilton, Bermuda – 29 April, 2011 - In a filing to the Bermuda Stock Exchange (BSX), LOM (Holdings) Limited (“LOM”; Ticker: LOM.BH) today released their audited financial results for fiscal year ended 31 December, 2010.

In a letter to shareholders, CEO Scott Lines said:

“Dear shareholder,

As reported in my half yearly letter in July, the second quarter of 2010 was made very difficult by fiscal events in Europe. However the market’s fears of those stresses causing a double dip recession faded in the second half of the year. LOM was a beneficiary of that improved sentiment and, as we forecast last April, the equity markets rose appreciably for the remainder of 2010. This in turn assisted revenues for the group, allowing us to return to operational profit for the full year.

Overall for 2010 LOM (Holdings) Limited posted a loss of $289,888. However within this result are two extraordinary items. The first is that the legal expenses in relation to our dispute with the SEC were higher than what had been provisioned for and resulted in LOM absorbing an additional charge in the year of almost $640,000. The second is that our auditors required us to write down the value of LOM’s holding in a privately held mining company by over $300,000. This private company, in which we hold 241,500 shares, had a previous valuation of $1.80 per share. The company completed a fund raising at $2 per share last year and is currently in the middle of raising between US$30 and $50 million at $2.50 per share with several major mining companies. However the auditors wished us to write the investment down to cost ($0.51), and thus we have taken a further $311,000 loss in the year due to that adjustment. Overall without these two extraordinary items our full year result would have shown a profit of over $660,000.

Group highlights for 2010 are:

·         Assets under administration rose 10% to $876 million.

• There was no return on equity.
• Total revenues climbed 10% to US$8.841 million.
• Total costs rose 8% to US$8.454 million.

The group’s balance sheet remained strong at year end with no debt and our cash levels are at 20% of total assets.

At the end of 2010, LOM’s book value per share was US$2.96.  During the year our share price on the Bermuda Stock Exchange traded between a low of $3.10 and a high of $3.65.

The Board has again decided to pay a small dividend of 1 cent per share to shareholders of record 16^th May 2011 and payable on the 1^st June 2011.

Going forward the LOM group is aggressively hiring new brokers to increase the number of clients in the group and amount of assets under administration.

Despite a difficult environment LOM is continuing to invest in technology to grow its business. As a result we will be launching our in-house, completely offshore on-line trading system, OPUS, to our customers in the second half of this year. This system is unique we believe in the offshore world as it is not simply a portal through to an onshore system but a completely in-house system built in conjunction with our independent IT contractors that will allow our clients around the world to trade globally whenever and wherever markets are open.

In October 2010, LOM reached a settled resolution with the US Securities and Exchange Commission in relation to our dispute with them stretching back 8 years. As part of this, the LOM subsidiaries settled only to the charges of negligence, without admitting or denying the charges and with no finding of fact by the court.  Notably however, the charges of scienter fraud were dropped, paving the way for final settlement.  Also notably, LOM (Holdings) Limited was dismissed altogether.  LOM’s board and management felt it was the proper commercial decision to make as regards your company as the legal costs relating to the dispute were becoming increasingly onerous. The settlement should allow LOM to put those unfortunate events behind the company and allow the management and staff to concentrate on growing customers, assets, revenues and ultimately profits.

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.

About the LOM Group:

LOM is a publicly-held, international financial services company, providing a complete range of investment services and products through its regulated subsidiaries in Bermuda and Bahamas.  In business for nearly 20 years, LOM today has nearly $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.  LOM is publicly listed on the Bermuda Stock Exchange (symbol LOM BH).  The consolidated group is debt-free and has shareholder’s equity of over $18 million.

Find out more about LOM at www.lom.com.