LHS Aktiengesellschaft continues heading for success

Revenue growth of 35.5 percent in the third quarter 2007 - full-year
revenue target for 2007 raised to EUR 97 to 98 million - new jobs
created worldwide

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Frankfurt am Main (euro adhoc) - October 25th 2007 - LHS, a leading
provider of telecom billing and customer care systems across the
wireless, wireline, and IP telecom markets worldwide today
announced its third quarter results for the period ended on 30
September 2007.

The results have been established in accordance with the
International Financial Reporting Standards (IFRS), which are
mandatory for all companies borrowing on the capital market. The key
figures and ratios for the ended business quarter are as follows:

* In the third quarter 2007, LHS revenues increased to EUR 25.3
million. This corresponds to a rise by 35.5 percent compared to
the relevant quarter of the previous fiscal year. Total revenues
generated in the first nine months of 2007 even rose by 48.8
percent to EUR 71.1 million. Considering this figure, LHS almost
generated - already in three quarters of 2007 - the total revenue
achieved in the previous business year. * The adjusted earnings
before interest, taxes, depreciation and amortization and
expenses related to stock options (adjusted EBITDA) increased by
approximately 82.1 percent from EUR 3.2 million to EUR 5.7 million in
the third quarter. On aggregate, adjusted EBITDA that was achieved
in the first nine months of 2007 rose by 120.1 percent to EUR 14.7
million. * The resulting rise in the adjusted EBITDA margin to
22.7 percent reflects the consistent cost management of LHS. Based
on the first nine months of the 2007 business year, accumulated
adjusted EBITDA margin also improved and now amount to 20.6
percent. * Adjusted profit for the third quarter 2007 rose by 121.7
percent and amount to EUR 3.7 million. Based on the first nine
months of the 2007 business year, the accumulated adjusted profit
rose by 177.7 percent and amount to EUR 10.9 million. * In the
third quarter 2007, adjusted basic earnings per share amounted to
EUR 0.26 (undiluted) and EUR 0.25 (diluted) respectively.
Accordingly, accumulated adjusted earnings per share amounted to
EUR 0.77 (undiluted) and EUR 0.74 (diluted) for the first nine
months of 2007. * In the third quarter 2007, the company managed to
realize a free cash flow of EUR 5.5 million. LHS realized an
increase of 232 percent compared to the third quarter 2006.

Highlights of the Operational Business Besides the encouraging
financial data described above, the dynamic development of the
operational business also testifies to the successful
implementation of LHS growth strategy. Important milestones in the
third quarter 2007 were: * Altogether two project contracts with new
customers were signed. The number of projects realized with the
only in October 2006 presented BSCS iX Release 2 version now
already amount to thirteen. * At the end of the first quarter 2007
LHS had 123 installations compared to 119 at the end of 2006. * In
the third quarter 2007, LHS created 36 new jobs: for example 13 jobs
in the Frankfurt headquarters, two jobs in the new sales office
in Madrid, four jobs in Sao Paulo, and 14 jobs in Kuala Lumpur.
This corresponds to an increase of altogether 123 jobs in the
first nine months of the 2007 business year. On 30 September
2007, LHS had a permanent staff of 626 employees all over the
world.

Successful Business Activities For the last quarter 2007 LHS
expects this positive development with ongoing growth to
continue. Wolfgang Kroh, chairman of the board of LHS, commented
on the third quarter results as follows: "Our investments made in our
software for billing and customer care systems continue to pay off.
The results achieved for the third quarter 2007, once again,
exceeded our expectations published in July 2007 for the third
quarter. The excellent results are, once again, the outcome of our
teams´ effort all over the world. On behalf of the entire board,
I would like to thank all employees of our international locations
and the Frankfurt headquarters for their commitment and
dedication. Together with our partners, we will dedicatedly work on
realizing our targets. I would also like to thank our customers for
their trust to our company."

Guidance increased Based on the achieved results, LHS has adjusted
the annual forecast for the entire business year 2007. Compared to
the EUR 95 million announced at the end of the first half-year of
2007, the company now expects higher revenues amounting to EUR 97 to
98 millions. The adjusted EBITDA margin should reach a figure of
about 21 percent. Concerning the fourth quarter 2007, LHS plans to
generate revenues of EUR 26 to 27 million and to reach an
adjusted EBITDA margin of around 22 percent.

The quarterly report is available on the LHS website: http://www.lhsg
roup.com/internet/pages/investor_relations/d/home/thema.php

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About LHS LHS is a leading provider of telecom billing and
customer care systems across the wireless, wireline, and IP telecom
markets worldwide. LHS Business Support Systems offer full
convergence on various levels, supporting the complete range of
business models both across the mix of fixed and mobile services,
as well as prepaid and postpaid services. LHS builds innovative
systems that enable our customers to introduce new services fast,
helping drive revenues up, while keeping operational costs to a
minimum. LHS was awarded "Best Billing or Customer Care Solution"
by the GSM Association in Cannes in 2005, won the IIR World Billing
Awards for its "Overall Best Contribution to Billing" in London in
2005 and 2006 as well as the "Stratecast Global Investment of R&D
Resources to Address Core Billing Needs Award" by Frost & Sullivan
in 2007. LHS is an independent software vendor (ISV) with
headquarters in Germany, and offices in Brazil, Czech Republic,
France, Malaysia, Turkey, and United Arab Emirates. LHS is part of
the LHS Group, and LHS Aktiengesellschaft as the Group's Holding
company is a public company listed on the Frankfurter Stock
Exchange (LHS400).

For more information, please visit www.lhsgroup.com

Disclaimer This press release contains certain forward-looking
statements relating to the business, financial performance and
results of the Company and/or the industry in which the Company
operates. Forward-looking statements concern future circumstances and
results and other statements that are not historical facts. The
forward-looking statements, including assumptions, opinions and views
of the Company contained in this press release are solely opinions
and forecasts which are uncertain and subject to risks. A multitude
of factors can cause actual events to differ significantly from any
anticipated development. The Company is under no obligation to update
or keep current the information contained in this press release to
which they relate and any opinions expressed in them are subject to
change without notice.

end of announcement euro adhoc 25.10.2007 07:00:00
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ots Originaltext: LHS Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Press contact:

LHS
Oliver Madsen
Investor Relations Officer
Herriotstrasse 1
60528 Frankfurt am Main
Germany
Phone: +49 (0)69-2383 3264
Fax: +49 (0)69-2383 5710
E-Mail: oliver.madsen@lhsgroup.com

Commercial Register: Amtsgericht Frankfurt/Main - Registration Number HRA 42727
Personally Liable Partner: LHS Management GmbH - Registration Number HRB 77913
Amtsgericht Frankfurt/Main
Management Board: Wolfgang Kroh, Axel Barta, Dr. Jens Troetscher

Fink & Fuchs Public Relations AG
Stefanie Wegner
Senior Consultant
Berliner Strasse 164
65205 Wiesbaden
Germany
Phone.: +49 (0)611-74 131-66
Fax: +49 (0)611-74 131-22
E-Mail: stefanie.wegner@ffpr.de
www.ffpress.net

Branche: Software
ISIN: DE000LHS4000
WKN: LHS400
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade